US Report Urges Pakistan to Bolster Parliamentary Oversight of Public Finances

A recent report from the United States State Department has called on Pakistan to strengthen parliamentary oversight of its public finances, emphasizing the need for greater transparency and timely disclosure of fiscal information. The 2026 Fiscal Transparency Report identified key areas for improvement, including the prompt publication of budget proposals and more comprehensive reporting on government debt, especially concerning major state-owned enterprises.

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During the review period, the government made its enacted budget and end-of-year report widely and easily accessible to the public, including online.

The report acknowledged that Pakistan made its enacted budget and end-of-year financial report widely accessible online. However, it noted a significant gap: the executive budget proposal was not published within a reasonable timeframe. The State Department stressed that timely access to proposed budgets is crucial for public scrutiny and informed parliamentary debate before formal approval.

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Pakistan did not publish its executive budget proposal within a reasonable period.

Furthermore, the assessment pointed out deficiencies in the disclosure of Pakistan's financial liabilities. The government provided only limited information on debt obligations, including those of state-owned enterprises. Increased transparency in this area, the report suggests, would offer a clearer understanding of the nation's overall financial health and help legislators and the public better assess potential fiscal risks associated with these entities.

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The government made only limited information on debt obligations, including major state-owned enterprise debt, publicly available.

Despite these shortcomings, the report offered a broadly positive view of Pakistan's financial transparency and auditing systems. It found that publicly available budget documents offered a substantially complete picture of government expenditures and revenues, including natural resource income. The country's supreme audit institution was found to meet international standards for independence and timely public reporting of its findings. Additionally, Pakistan's handling of natural resource contracts, public procurement, and its sovereign wealth fund received favorable mentions.

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Publicly available budget documents provided a substantially complete picture of most of the government’s planned expenditures and revenues, including natural resource revenues.