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WASHINGTON: Pakistan needs to strengthen parliamentary oversight of its public finances by improving the timely disclosure of budget proposals, government debt and other fiscal information, according to a new US State Department assessment. The findings were published in the department’s 2026 Fiscal Transparency Report, an annual review examining how governments make financial information available to citizens and whether public institutions have adequate oversight mechanisms. The report acknowledged several positive aspects of Pakistan’s fiscal system but highlighted important gaps that could make it harder for Parliament and the public to fully assess government spending plans and financial risks. One of the key concerns was the delayed publication of the executive budget proposal. The report said Pakistan did not release the proposal within a reasonable period, limiting the opportunity for lawmakers and citizens to examine spending and revenue priorities before the budget was formally approved. The State Department recommended that the government publish its proposed budget in a timely manner to allow greater public scrutiny and parliamentary debate. The report also raised concerns over the limited disclosure of government debt obligations, particularly liabilities linked to major state-owned enterprises. More comprehensive information, it said, would provide a clearer picture of Pakistan’s overall financial position and help identify potential fiscal risks. Despite these shortcomings, the assessment offered credit for several areas of Pakistan’s financial transparency. It said enacted budgets and year-end reports were widely and easily accessible, including online. Publicly available budget documents were also found to provide a substantially complete picture of most planned government expenditures and revenues, including income from natural resources. Pakistan’s auditing arrangements received a broadly favourable assessment. The report said budget information was generally reliable and subject to scrutiny by the country’s supreme audit institution. It further noted that the institution met international standards of independence and made its findings public within a reasonable period. The assessment also examined natural resource contracts and public procurement. It found that Pakistan had established legal procedures for awarding natural resource extraction licences and appeared to follow them in practice. Information on public procurement contracts was also considered accessible. However, the report identified a particularly sensitive area requiring greater oversight: military and intelligence spending. According to the assessment, the budgets of military and intelligence agencies were not subject to adequate parliamentary or civilian public oversight. The State Department included stronger scrutiny of these expenditures among its principal recommendations. Overall, the report presented a mixed picture rather than describing Pakistan’s fiscal system as broadly opaque. It recognised progress in publishing budgets, audit findings and procurement information while urging authorities to close key transparency gaps. The recommendations underline the importance of timely financial disclosure and stronger parliamentary scrutiny in improving accountability, public confidence and the management of Pakistan’s fiscal risks.