US Tells Pakistan To Put Defence, Intelligence Budgets Under Civilian Oversight

The United States State Department instructed Pakistan to put its defence and intelligence budgets under parliamentary or civilian oversight. Washington suggested Islamabad take these steps to enhance fiscal accountability and transparency, Pakistani news agency Dawn said in a report.

The recommendation was included in the US Department of State’s 2025 Fiscal Transparency Report released Friday.

“The military and intelligence budgets were not subject to adequate parliamentary or civilian public oversight. Steps Pakistan could take to improve fiscal transparency include, making its executive budget proposal publicly available within a reasonable period,” the report said.

“The military and intelligence budgets were not subject to adequate parliamentary

or civilian public oversight,” the report further stated.

The Pakistani newspaper highlighted that the US State Department suggested Islamabad to publish its executive budget proposal on time.

“It did not publish its executive budget proposal within a reasonable period. The government made only limited information on debt obligations, including major state-owned enterprise debt, publicly available,” the report said.

Several US and international reports have alleged that elements within Pakistan have tolerated or in some cases facilitated militant groups used as strategic proxies, raising long-standing counter-terrorism concerns.

India has consistently maintained that terrorism enjoys state sponsorship in Pakistan and that such proxies have been deployed to create instability in the Kashmir valley and across the wider South Asian region.

Following a recent counter-terror operation, codenamed Operation Sindoor, in which Indian forces eliminated key militant leaders and hideouts, senior officials of the Pakistani army were captured in videos, attending the funerals of those killed.

The US Congressional Research Service (CRS) has previously underscored that Pakistan “remains a haven for numerous Islamist extremist and terrorist groups” and that authorities in Islamabad have at times tolerated or supported proxy outfits during regional conflicts.

Global watchdogs have also repeatedly flagged weaknesses in Pakistan’s counter-terror financing mechanisms, with the FATF urging stronger oversight even after Pakistan’s removal from its “grey list.”