US report urges Pakistan to open up budget and debt information

The department’s 2026 Fiscal Transparency Report said Pakistan had made progress in making financial information publicly available

WASHINGTON: Pakistan needs to improve transparency in its public finances and give Parliament and citizens earlier access to key budget and debt information, according to a new US State Department assessment.

The department’s 2026 Fiscal Transparency Report said Pakistan had made progress in making financial information publicly available but still faced important gaps, particularly in the timely release of its proposed budget and disclosure of government liabilities.

The report noted that Pakistan’s approved budget and year-end financial reports were easily accessible to the public, including online. However, it found that the government did not release its executive budget proposal within a reasonable timeframe.

According to the assessment, publishing the proposed budget earlier would give lawmakers and the public more time to examine the government’s spending and revenue priorities before the document is formally approved.

The report also raised concerns over limited public information about government debt, especially liabilities linked to major state-owned enterprises. Greater disclosure, it said, would help provide a clearer picture of the country’s financial position and allow Parliament to better assess potential fiscal risks.

Despite these shortcomings, the US assessment acknowledged that Pakistan’s publicly available budget documents contained substantial information on planned government revenues and expenditures, including income from natural resources.

Pakistan’s auditing system also received a largely positive assessment. The report said financial information was generally reliable and subject to review by the country’s supreme audit institution, which it found to have an appropriate level of independence under international standards. Audit findings were also made available to the public within a reasonable period.

The report found that Pakistan had established legal procedures for awarding natural resource extraction contracts and licences and appeared to follow those rules in practice. It also noted that information on public procurement contracts was accessible and described the legal framework governing the country’s sovereign wealth fund as sound.

The State Department identified three major areas where Pakistan could further strengthen fiscal transparency: releasing the executive budget proposal on time, providing more detailed information about government debt, including state-owned enterprise liabilities, and bringing military and intelligence budgets under adequate parliamentary or civilian oversight.

Overall, the report did not portray Pakistan’s financial system as broadly opaque. Instead, it recognised several areas of progress while calling for stronger parliamentary scrutiny and greater disclosure of information that could help lawmakers and the public understand the country’s fiscal risks.