US urges Pakistan to boost transparency on defence spending and debt

The United States State Department highlighted gaps in Pakistan’s fiscal openness in its 2026 Fiscal Transparency Report, noting that military and intelligence allocations are not subject to adequate parliamentary or civilian oversight. It criticized the delayed release of the executive budget proposal, which restricts lawmakers and civil society from reviewing spending before adoption. The report urged Pakistan to publish the budget earlier, disclose detailed government debt, including obligations of state-owned enterprises, and bring security-related budgets under public scrutiny.

While acknowledging that Pakistan makes its enacted budget and year-end financial statements widely available, the assessment pointed out that major defence acquisitions are funded outside the disclosed budget and remain hidden. The report also commended the country's supreme audit institution for meeting international independence standards and issuing timely audit reports. These recommendations aim to increase visibility into Pakistan’s defence spending, debt liabilities, and overall fiscal management.