Shehbaz denounces Houthi attacks in call with MBS

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.

BUDAPEST: Hungary has taken the unprecedented step of shutting down its only nuclear power plant after severe drought pushed the Danube River to critically low levels, threatening the facility’s ability to safely cool its reactors and raising fears of an energy crisis during an intense summer heatwave. The closure of the Paks Nuclear Power Plant marks the first complete shutdown in the facility’s 44-year history. The plant, which typically supplies between one-third and 40 percent of Hungary’s electricity, has been forced offline as water levels in the Danube continue to fall amid one of Central Europe’s worst droughts in recent decades. Prime Minister Peter Magyar warned that the country now faces its “most critical five days,” with temperatures expected to climb to around 40 degrees Celsius just as electricity demand peaks. In a video message shared on social media, Magyar said the shutdown would place enormous pressure on Hungary’s electricity grid, public services and essential infrastructure. “Tomorrow, the Paks power plant will not be generating, while the hottest days are still ahead,” he said, urging citizens and businesses to reduce electricity consumption during evening peak hours between 5 p.m. and 10 p.m. The 2-gigawatt facility operates four Russian-built reactors that rely on water from the Danube for cooling. With river levels dropping to record lows, authorities determined that continuing operations could compromise reactor safety. Officials have also warned that the plant could remain offline for several weeks if weather conditions fail to improve. The drought has affected more than just power generation. Falling water levels have disrupted river transport, slowed tourism and prompted water-use restrictions in over 100 cities and villages, including areas surrounding Budapest. To maintain electricity supplies, Hungary has begun importing emergency power from neighboring countries while considering additional measures to stabilize the grid. The government is also weighing mandatory electricity restrictions for large industrial consumers if conditions worsen. Officials estimate the crisis could cost the country between 100 billion and 200 billion forints (approximately $315 million to $630 million) because of soaring electricity import prices. Climate experts say the situation highlights the growing vulnerability of Europe’s energy infrastructure to extreme weather events linked to climate change. Nuclear power plants across the continent depend on rivers and lakes for cooling, making prolonged droughts an increasingly serious operational challenge. For now, authorities remain focused on conserving electricity and closely monitoring the Danube’s water levels. With scorching temperatures forecast to continue, Hungary faces a difficult balancing act between ensuring public safety, maintaining energy security and managing one of the country’s most severe climate-related emergencies in decades.