Why US is questioning Pakistan's Rs 3 trillion defence spending
The US State Department's 2026 Fiscal Transparency Report has criticized Pakistan for a lack of civilian and parliamentary oversight regarding its military and intelligence budgets. The report also urged the country to improve the transparency of its public debt and executive budget proposals.
Why it matters
Fiscal transparency is a key requirement for international financial stability and foreign aid, impacting Pakistan's economic credibility on the global stage.
The US state department has flagged a lack of adequate parliamentary and civilian oversight of Pakistan's military and intelligence spending, while also raising concerns over limited disclosure of government debt and delays in publishing the executive budget proposal.The concerns were highlighted in the 2026 Fiscal Transparency Report, which assessed Pakistan's public financial transparency and identified gaps in the country's budgetary and fiscal disclosure practices.The report noted that Pakistan made its enacted budget and end-of-year financial statements widely available online.
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