US Urges Pakistan to Ensure Transparency in Defence and Security Spending

The United States has urged Pakistan to bring its defence and intelligence budgets under public and parliamentary oversight, stressing this as crucial for enhanced fiscal transparency and accountability. This recommendation is part of the U.S. State Department’s 2025 Fiscal Transparency Report, which examines how governments around the world handle budget openness, debt disclosure, and audit practices.

In its section on Pakistan, the report notes that the country’s military and intelligence expenditures currently lack adequate scrutiny by either parliament or civilian bodies. It suggests that allowing legislative or civilian review of those budgets would be a key reform. It also points out that Pakistan should make its executive budget proposal public in more timely fashion to allow for informed public debate and legislative oversight.

The report highlights shortcomings around debt transparency as well. It finds that although some information on central government debt is available, detailed data on contingent liabilities—such as debt owed by state‑owned enterprises—remains largely undisclosed. The U.S. report recommends that these debt obligations be made more fully transparent.

While noting these gaps, the review also acknowledges progress in certain areas. According to the report, Pakistan’s enacted budget and year‑end accounts are now widely accessible to the public online. It praises Pakistan’s supreme audit institution as meeting international standards for independence, adding that audit reports are published in a timely manner.

These recommendations come at a time when Pakistan faces serious fiscal challenges. For fiscal year 2025‑26, the government has presented a budget of Rs 17.57 trillion, with Rs 9.7 trillion earmarked for servicing debt and Rs 2.55 trillion for defence—representing nearly a 20 percent increase over the previous year. Analysts say that greater transparency and oversight of defence spending could help bolster public trust and improve investor confidence just when external financing and investment are particularly important to the country.