The department’s 2026 Fiscal Transparency Report acknowledged progress in Pakistan’s public financial reporting but identified several areas requiring further improvement. The assessment found that the country’s approved budget and year-end financial reports were readily available to the public, including through online platforms.

However, it said the government did not make its executive budget proposal available within a reasonable timeframe. Earlier publication, the report noted, would allow Parliament and citizens more opportunity to examine proposed spending and revenue priorities before the budget is formally approved.

The assessment also highlighted gaps in information about Pakistan’s public debt and government liabilities, particularly those associated with major state-owned enterprises. Greater disclosure could give lawmakers and the public a clearer understanding of the country’s overall fiscal position and potential financial risks.

The report gave a largely positive assessment of Pakistan’s auditing arrangements. It said financial information was generally reliable and subject to review by the country’s supreme audit institution, which was considered to have an appropriate level of independence. Public access to audit findings was also viewed positively.

Pakistan’s framework for awarding natural resource extraction contracts and licences was also recognised as established and generally followed in practice. Public procurement information was considered accessible, while the legal framework governing the sovereign wealth fund was described as sound.

The State Department identified three key areas for improvement: timely publication of the executive budget proposal, more comprehensive disclosure of government debt and state-owned enterprise liabilities, and stronger parliamentary or civilian oversight of military and intelligence budgets.