Federal Govt Devises a New Way for NGOs to Receive Foreign Funding

The federal government has approved a policy that regulates the receipt, use, and availability of foreign funding by non-governmental organizations (NGOs) and non-profit organizations (NPOs) registered in the country. 

The policy was enacted to control and improve the efficacy of foreign financing received, availed, and used by registered NGOs and non-profit organizations in Pakistan.

A Memorandum of Understanding (MoU) between an NGO or NPO and the Ministry of Economic Affairs can be revoked under the policy if the organization violates any of the policy’s regulations, engages in activities that compromise national security, fosters religious intolerance or ethnic violence, is engaged in financial fraud or terrorism financing, continues to operate in restricted or prohibited areas without permission, or submits false or fraudulent information.

If there are no negative reports from relevant agencies, the MoU can be renewed for up to 30 months.

If an unfavorable report surfaces, the Ministry of Economic Affairs may release a show cause notice and, if the reaction is inadequate, launch a special audit in collaboration with a registered authority or charitable commission.

NGOs and NPOs have 15 days from the date of the decision to submit a grievance petition to the Ministry of Economic Affairs’ Grievance Committee, which is chaired by the Secretary of the Ministry of Economic Affairs and includes representatives from various government agencies.