The United States State Department in its 2025 Fiscal Transparency Report has once again urged Pakistan to subject its defence and intelligence expenditure to parliamentary or civilian audit, according to “Daily Times. The report, in examining fiscal transparency in 140 countries, warns that military and intelligence expenditure in Pakistan still evades extensive legislative scrutiny forestalling informed debate over government expenditures.
The report also points to restraints in publishing the executive budget proposal, inadequate disclosures on state‐owned enterprise debt, and selective transparency in defence‐intelligence expenditures. While the State Department applauds Pakistan for making enacted budgets and end‐of‐year financial statements publicly available and audit‐able through the Supreme Audit Institution, an absence of legislative checks over defence spending emerges as significant weakness.
Reponses auPakistan
The study’s conclusions have raised eyebrows back home. The opponents of increased control argue increased review through civilians is necessary in light of the sheer jump in defence spending up to nearly 20% in the 2025-26 budget, in which Rs 2.55 trillion have been allocated for defence as part of an aggregate outlay of Rs 17.57 trillion. They argue the spurt, driven in part through neighbourhood tensions, necessitates added accountability.
Opposition parties have expressed skepticism as to whether Parliament would have meaningful say to review in-camera aspects of defence and intelligence expenditures. Certain government and military establishments have been reluctant to subject certain appropriations to parliamentary or public review, due to national security and strategic secrecy. (No direct quotes to date, but news articles note discomfort.)
Regional Comparison & Analyst Views
The analysts observe that the military spend of Pakistan—though rising—is lower in absolute value than India, its regional rival. Within the 2025-26 budget period, Rs 2.55 trillion (≈ US$9 billion) were set aside by Pakistan on defence spending, representing an abrupt increase, but several times less than India’s armed spend budget.
Other analysts note that defence spending increases under situations of heightened tension (such as following cross-border attacks) have not been uncommon in South Asia, but warn against inefficiency, corruption, and misallocation without stepped-up transparency and review institutions. Others place Pakistan’s oversight practices less favourably in comparison to nations possessing deeper democratic review of defence spending.
Why Transparency Matters Now
As Pakistan struggles under great financial pressure—massive debt servicing obligations, IMF pressures, citizens’ demands for economic stimulus—interpreters argue bolstering transparency as not just good governance, but essential to gain domestic trust and access to international finance. The U.S. report cites as one of the most critical levers to boost investor trust and to bring responsible utilisation of resources, oversight of expenditure on defence and intelligence.
