The US Department of State’s 2025 Fiscal Transparency Report, released on Friday, has highlighted a lack of parliamentary or civilian oversight of Pakistan’s military and intelligence budgets. The annual report assesses how governments around the world publish, audit, and manage public funds.
In the section on Pakistan, the report stated that “the military and intelligence budgets were not subject to adequate parliamentary or civilian public oversight.” It recommended that “steps Pakistan could take to improve fiscal transparency include… subjecting the military and intelligence agencies’ budgets to parliamentary or civilian public oversight.”
The report also urged Pakistan to ensure the timely publication of its executive budget proposal, noting that the government “did not publish its executive budget proposal within a reasonable period.” It called for an earlier release of the document to allow for informed public debate and scrutiny.
On debt disclosure, the report found that “the government made only limited information on debt obligations, including major state-owned enterprise debt, publicly available.” It recommended “disclosing detailed information on government debt obligations, including for state-owned enterprises.”
While pointing out these shortcomings, the State Department did acknowledge progress in other areas. It praised Pakistan’s supreme audit institution, stating it “met international standards of independence” and that the country’s enacted budget and end-of-year report are “widely and easily accessible to the public, including online.”
The report comes as Pakistan faces severe budgetary pressures. The government’s budget for the fiscal year 2025-26 totals Rs17.57 trillion, with Rs9.7 trillion allocated for debt servicing and a nearly 20 percent increase to Rs2.55 trillion for defense. The US recommendations aim to bolster public and international confidence in Pakistan’s financial management at a time when external financing and investment are crucial for its economic stability.
