The United States has urged Pakistan to improve transparency and accountability in its military and intelligence spending, calling for stronger parliamentary and civilian oversight of these areas.
The recommendation was highlighted in the U.S. Department of State’s Fiscal Transparency Report 2026, which assesses the quality and availability of public financial information in countries receiving U.S. assistance. The report identified several areas where Pakistan could improve its fiscal transparency.
A major concern is the limited public and parliamentary scrutiny of Pakistan’s military and intelligence expenditures. Washington has recommended that Islamabad take steps to bring these expenditures under greater civilian and legislative oversight, allowing lawmakers and the public to gain a clearer understanding of how government resources are being allocated.
The United States also raised concerns about the timely publication of Pakistan’s executive budget proposal. While Pakistan makes several important budget documents publicly available, the report noted that the executive budget proposal was not released within the expected timeframe.
Another area highlighted by Washington is Pakistan’s disclosure of government debt obligations. The United States has encouraged Islamabad to provide more comprehensive information about its financial liabilities, including obligations connected with major state-owned enterprises.
At the same time, the report acknowledged some positive aspects of Pakistan’s fiscal system. Publicly available budget documents provide substantial information about planned government revenues and expenditures. Pakistan’s supreme audit institution was also assessed as meeting international standards concerning independence, while audit reports are made available within a reasonable period.
The U.S. assessment comes as Pakistan continues to maintain significant defence spending despite facing considerable economic and fiscal pressures. The level of military expenditure has frequently attracted attention because of the powerful role played by Pakistan’s armed forces in the country’s security and political affairs.
Greater transparency in defence and intelligence spending could provide lawmakers, citizens and international partners with a better understanding of Pakistan’s financial priorities. It could also strengthen accountability over public funds and improve confidence in the country’s fiscal management.
The latest U.S. recommendations are therefore significant for Pakistan’s defence establishment as well as its broader economic governance. Implementing them would require greater disclosure of military allocations, stronger parliamentary scrutiny and more timely publication of financial documents.
For Washington, improving fiscal transparency remains an important part of ensuring accountability in countries receiving U.S. assistance. For Islamabad, the recommendations could add pressure to make defence-related financial information more accessible while balancing transparency requirements with national security considerations.