International Desk: The United States has lauded Bangladesh's Interim Government for moving to make all procurements for natural resource extraction fully open and transparent, suspending all previous or ongoing direct negotiations led by the former government.

The observation came in the "2025 Fiscal Transparency Report" released by the US Department of State, which reviewed Bangladesh's fiscal management during the period of political transition.

The report highlighted that following the July change in governance, the non-political Interim Government generally followed the budgetary recommendations of its predecessor but initiated significant reforms aimed at strengthening fiscal transparency.

It said that while the previous government made its executive budget proposal and enacted budget publicly available, it failed to release end-of-year reports within a reasonable time.

The budget documents were found to be generally reliable, though not aligned with internationally accepted principles.

According to the report, public information on debt obligations was available, and budget documents included allocations for state-owned enterprises as well as natural resource revenues.

However, the absence of a detailed breakdown of expenditures for executive offices and a substantially complete picture of government revenues and expenditures remained gaps.

About auditing, the report said that due to the government transition, the supreme audit institution did not fully review accounts, though it published some summarized findings.

It further said that the audit body lacked sufficient independence to meet international standards.

Besides, the report recognized legal provisions for awarding natural resource extraction contracts, with the Interim Government moving decisively to strengthen transparency and accountability in this area.

The report recommended that Bangladesh publish its end-of-year budget reports in a timely manner to ensure accountability and allow for effective public and institutional scrutiny of fiscal performance.

It further suggested that budget documents be prepared in line with internationally accepted principles and global standards, which would enhance their credibility and comparability with other economies.

To strengthen public understanding and confidence, the report advised that Bangladesh provide a fuller and more transparent picture of government revenues and expenditures, including detailed breakdowns across various sectors.

Another key recommendation was ensuring that the country's supreme audit institution operates with full independence and has adequate resources to effectively review accounts.

In addition, the report called for the publication of substantive audit reports containing detailed findings, recommendations and narratives that go beyond summary statements, thereby offering greater clarity on fiscal management.

The report also gave importance of disclosing detailed information on public procurement contracts and natural resource extraction awards.

The US assessment concluded that Bangladesh's ongoing reforms under the Interim Government mark "important progress," but sustained efforts are needed to align with international fiscal transparency standards.