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US Urges Pakistan to Place Defence Budgets Under Civilian Oversight, Calls for Greater Transparency

The annual report assesses government budgetary openness, focusing on disclosure, audit practices, and management of public funds.

TIS Desk | Washington |

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The United States has recommended that Pakistan subject its defence and intelligence budgets to parliamentary or civilian oversight, highlighting the move as essential for enhancing fiscal accountability and transparency, according to Dawn.

The recommendation was part of the US Department of State’s 2025 Fiscal Transparency Report, released Friday. The annual report assesses government budgetary openness, focusing on disclosure, audit practices, and management of public funds.

“The military and intelligence budgets were not subject to adequate parliamentary or civilian public oversight,” the report noted. It suggested that Pakistan could improve fiscal transparency by placing these budgets under civilian scrutiny.

The report also urged Pakistan to publish its executive budget proposal on time, stating that earlier release would enable informed debate and public scrutiny. On debt disclosure, it observed that “only limited information on debt obligations, including major state-owned enterprise debt, [was] publicly available,” recommending detailed disclosure of all government debt.

While highlighting gaps, the report acknowledged areas of progress. Pakistan’s enacted budget and end-of-year reports are “widely and easily accessible to the public, including online,” with information generally reliable and audited by a Supreme Audit Institution meeting international independence standards. It also noted transparency in natural resource extraction contracts and licensing.

The report reiterated previous concerns regarding insufficient legislative oversight of defence spending and limited debt transparency. Pakistan’s 2025-26 budget allocates Rs 17.57 trillion, including Rs 9.7 trillion for debt servicing and Rs 2.55 trillion for defence—an almost 20% increase from the previous year.

The State Department emphasized that these recommendations aim to bolster public trust and international confidence in Pakistan’s financial management, particularly as the country seeks critical external financing and investment for economic stability.

The 2025 Fiscal Transparency Report assessed 140 governments and entities, evaluating timely budget publication, debt disclosure, audit independence, and oversight of sensitive expenditures including defence and intelligence.

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