Why US is questioning Pakistan's Rs 3 trillion defence spending
The US State Department has flagged Pakistan's limited oversight of military and intelligence spending. Concerns were also raised regarding government debt disclosure and budget proposal publication delays. Pakistan's defence allocation has significantly increased for the upcoming financial year. The report urges greater transparency in military and intelligence budgets. This assessment…
The US state department has raised concerns over Pakistan's increasing defence spending, which has risen to Rs 3 trillion for the 2026-27 financial year. In its 2026 Fiscal Transparency Report, the US highlighted gaps in the country's budgetary and fiscal disclosure practices, particularly in relation to military and intelligence budgets.
The report criticized Pakistan for lacking adequate parliamentary and civilian oversight of these budgets and for not publishing its executive budget proposal within a reasonable period. While the US acknowledged some positive aspects of Pakistan's public financial system, it urged the country to improve defence and debt transparency by making the executive budget proposal publicly available, disclosing detailed information about government debt obligations, and bringing military and intelligence agency budgets under parliamentary or civilian public scrutiny.
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