Washington has issued a stern warning to Pakistan through the latest US Fiscal Transparency Report, demanding that Islamabad make its defence spending public or risk losing billions in American aid. For decades, Pakistan’s military has operated in secrecy while receiving substantial US funding, but Congress is increasingly pressing for transparency, threatening to strip Pakistan of its “major non-NATO ally” status unless its defence budget is open to scrutiny.
The report highlights a history of distrust, citing incidents such as Osama bin Laden living near Pakistan’s premier military academy and intelligence tips about terror camps going unheeded. Billions in US aid have been frozen since former President Trump’s term, and lawmakers are again pushing for accountability, insisting Pakistan prove it is combating, not sheltering, militants.
Beneath the secrecy, Pakistan’s military has built a sprawling commercial empire known as “Milbus,” with entities like the Fauji Foundation and Army Welfare Trust dominating banking, cement, fertilisers, and logistics. Investigations, including the Pandora Papers, have exposed extensive wealth accumulation by retired generals, such as Major General Nusrat Naeem and Lieutenant General Asim Saleem Bajwa, along with dramatic asset growth in families like that of General Qamar Javed Bajwa.
In January 2025, Representative Andy Biggs reintroduced legislation to revoke Pakistan’s major non-NATO ally status unless the US president certifies that Islamabad is actively targeting the Haqqani Network and cooperating with Afghanistan to limit militant movement.
Despite these concerns, Pakistan’s strategic geography remains critical. Its border with Afghanistan provides the US with land access for intelligence and counterterror operations, a capability lost after the withdrawal from Bagram Air Base. Until Pakistan demonstrates full transparency and verifiable counterterror measures, Washington is poised to maintain tight control over aid disbursements.
