Archive · 21 Aug 2026
US Report Flags Gaps in Pakistan Military Budget Oversight
A US government report says Pakistan’s elected leaders do not have enough information or power to examine military and intelligence spending.
Pakistan plans to spend about PKR 3 trillion on defence in 2026–27.
This amount does not include some military pensions and other costs listed elsewhere.
The report also says Pakistan does not always publish budget and debt information quickly or fully.
This makes it harder for citizens and lawmakers to know how public money is used.
The criticism is important because Pakistan is receiving help from the International Monetary Fund.
Ordinary people are being asked to pay more taxes and electricity charges while the military’s spending receives less public scrutiny.
The report says greater oversight could improve accountability and investor confidence.
The United States Department of State’s 2026 Fiscal Transparency Report identified serious gaps in civilian and parliamentary oversight of Pakistan’s military and intelligence budgets.
Pakistan allocated about PKR 3 trillion for defence in 2026–27, a 17.6% increase from the previous year’s initial allocation.
Military pensions and some other defence-related costs are recorded separately, meaning the allocation does not represent the military’s full cost.
The report also raised concerns about limited disclosure of government debt and delays in publishing budget information.
The report warned that fiscal secrecy can weaken investor confidence and increase corruption risks, particularly as Pakistan relies on international financial assistance.
- Who
- The United States Department of State, Pakistan’s civilian institutions, and the country’s military and intelligence establishment.
- What
- A US fiscal transparency report flagged inadequate parliamentary and civilian oversight of Pakistan’s military and intelligence budgets.
- When
- The findings were published in the 2026 Fiscal Transparency Report; Pakistan’s cited defence allocation covers 2026–27.
- Where
- Pakistan.
- Why
- The report said limited disclosure and military budget secrecy undermine accountability, investor confidence, and efforts to address corruption risks.
- Defence allocation
- About PKR 3 trillion for Pakistan’s 2026–27 defence budget.
- Year-on-year change
- The allocation is 17.6% higher than the previous year’s initial allocation.
- Excluded costs
- Military pensions and some other defence-related expenditures are accounted for separately.
- Report author
- The United States Department of State issued the 2026 Fiscal Transparency Report.
- Oversight concern
- The report recommended subjecting military budgets to parliamentary oversight.
- Other transparency concerns
- The report cited limited disclosure of government debt, including state-owned enterprise liabilities, and delays in publishing budget information.
- Financial context
- Pakistan is again dependent on assistance from the International Monetary Fund.