US report calls for strengthening parliamentary oversight of Pakistan's public finances

In its 2026 Fiscal Transparency Report, the United States State Department has called for Pakistan to strengthen parliamentary oversight of public finances. The report identified several areas where greater transparency was needed, including timely disclosure of budget proposals, government debt, and other fiscal information. While Pakistan made its enacted budget and end-of-year report widely accessible, it fell short in publishing its executive budget proposal within a reasonable period.

The department emphasized that timely access to the proposed budget was crucial for public scrutiny of spending and revenue priorities. The report also noted gaps in information about Pakistan's financial liabilities, particularly the limited publication of major state-owned enterprise debt. Despite these shortcomings, the report found that Pakistan's publicly available budget documents provided a substantially complete picture of most planned expenditures and revenues, including natural resource revenues.

The State Department praised Pakistan's supreme audit institution, noting that it was generally reliable, subject to scrutiny, met international standards of independence, and made findings available to the public within a reasonable period. The assessment also highlighted that Pakistan had established legal and regulatory criteria for natural resource contracts and licences and appeared to follow them in practice.

The report recommended three principal steps for Pakistan to improve fiscal transparency: making the executive budget proposal publicly available within a reasonable timeframe, disclosing detailed information on government debt obligations, and subjecting military and intelligence agencies' budgets to parliamentary or civilian public oversight.