Key Points

The recommendation was included in the US Department of State's 2025 Fiscal Transparency Report, released on Friday. The annual assessment reviews budgetary openness across governments, focusing on how states disclose, audit, and manage public funds.

"The military and intelligence budgets were not subject to adequate parliamentary or civilian public oversight," the report stated in its Pakistan section. It added that "steps Pakistan could take to improve fiscal transparency include subjecting the military and intelligence agencies' budgets to parliamentary or civilian public oversight."

Dawn reported that the State Department also urged Pakistan to publish its executive budget proposal on time. "The government... did not publish its executive budget proposal within a reasonable period," the assessment noted, adding that earlier release would allow for informed debate and scrutiny.

On debt disclosure, the report observed that "the government made only limited information on debt obligations, including major state-owned enterprise debt, publicly available." It recommended "disclosing detailed information on government debt obligations, including for state-owned enterprises."

While highlighting shortcomings, the report acknowledged areas of progress. Pakistan's "enacted budget and end-of-year report [were] widely and easily accessible to the public, including online," and budget information was "generally reliable and subject to audit by the supreme audit institution." It also praised the independence of the audit institution, saying it "met international standards of independence" and published audit findings within a reasonable period.

According to Dawn, the report further noted that Pakistan "specified in law or regulation, and appeared to follow in practice, the criteria and procedures for awarding natural resource extraction contracts and licences," while ensuring that "basic information on natural resource extraction awards [was] publicly available."

The 2025 review echoed concerns raised in previous reports about gaps in debt transparency and the absence of legislative oversight of defence expenditure. The release comes as Pakistan faces mounting budgetary pressures, with its 2025-26 budget setting allocations at Rs17.57 trillion. Of this, Rs 9.7tr is earmarked for debt servicing, while Rs 2.55tr has been designated for defence -- a nearly 20 per cent increase from the previous year, Dawn reported.

The State Department said its recommendations were aimed at bolstering 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 covered 140 governments and entities, assessing practices such as timely budget publication, debt disclosure, audit independence, and oversight of sensitive spending, including defence and intelligence, Dawn added.

- ANI