The United States has urged Pakistan to enhance transparency in state finances, notably through more public and civilian supervision of expenditures granted to the military and intelligence organisations.
The US State Department stated in its 2026 Fiscal Transparency Report on Pakistan that the government continued to have deficiencies in the public availability of critical financial information. They included data on government debt and spending by military and intelligence agencies.
The report concluded military and intelligence spending was not adequately overseen by parliament or civilian public bodies. It also said Pakistan gave little detail on its debt commitments, including liabilities related to large state-owned firms.
The US State Department also noted the delayed publishing of Pakistan’s executive budget plan as an area that needed improvement.
It advised that Pakistan present its executive budget plan within a fair timeframe, provide more precise information on government debt, including debt held by state-owned firms, and enhance parliamentary or civilian oversight of military and intelligence spending.
But the report also noted advances in fiscal transparency in Pakistan. It claimed the government’s authorised budget and year-end financial reports are available in many public venues, including online. Public budget documents also provide a largely full picture of expected government revenues and spending.
The report also claimed that Pakistan’s budget data is generally credible and subject to audits by the country’s ultimate audit organization, which it said fulfils international norms of independence. Audit findings are also published to the public within a fair time.
Pakistan’s Reaction
Pakistan operates within its constitutional, legal and regulatory framework and according to internationally accepted standards on fiscal openness, budgeting and financial disclosure, Foreign Office spokesperson Tahir Andrabi said.
He also mentioned the ongoing program of Pakistan with the International Monetary Fund and said that the structural reforms and steps of fiscal management have been acknowledged by the IMF and international credit rating agencies.
