The United States has called on Pakistan to strengthen civilian oversight of public finances, urging greater transparency in government spending, debt reporting and military budgets to improve fiscal accountability.
In its 2026 Fiscal Transparency Report, the US State Department said Pakistan still falls short in publicly disclosing key financial information, including details of government debt and the budgets of military and intelligence institutions.
According to the report, military and intelligence spending is not subject to sufficient parliamentary or civilian oversight. It also noted that the government provides only limited public disclosure of debt obligations, particularly liabilities linked to major state-owned enterprises.
The report further highlighted delays in publishing Pakistan’s executive budget proposal, saying it was not made publicly available within a reasonable timeframe.
The State Department recommended that Pakistan release its executive budget proposal on time, publish comprehensive information on public debt—including debt owed by state-owned enterprises—and introduce stronger parliamentary or civilian scrutiny of military and intelligence budgets.
Despite these concerns, the report acknowledged improvements in several areas of Pakistan’s fiscal management.
It noted that the enacted federal budget and year-end financial reports are publicly accessible, including online, and that budget documents provide a largely comprehensive picture of planned government revenues and expenditures.
The report also described Pakistan’s budget data as generally reliable and said it is audited by the country’s supreme audit institution, which meets internationally recognized standards of independence. Audit reports are also released to the public within a reasonable period.
Responding to the report, Foreign Office spokesperson Tahir Andrabi said Pakistan follows internationally accepted standards for fiscal transparency, budgeting and financial disclosure within its constitutional and legal framework.
He added that Pakistan’s ongoing reform agenda under the IMF programme, including measures to improve fiscal management, has been acknowledged by both the IMF and international credit rating agencies.
