New policy for local NGOs, NPOs receiving foreign funding announced

ISLAMABAD: The government has approved a policy for local NGOs/NPOs receiving foreign funding under which a Memorandum of Understanding (MoU) signed with the Ministry of Economic Affairs can be terminated under certain conditions, including withdrawal of security clearance by the relevant agency.

The Office Memorandum (OM) issued by the Ministry of Economic Affairs Division (EAD) stated that the policy for local Non-Governmental Organisations (NGO)/Non-Profit Organizations (NPOs) Receiving Foreign Contributions 2022, has been approved by the federal cabinet. The policy has been promulgated to regulate and enhance the effectiveness of foreign funding being received, availed and utilised by NGOs and non-profit organisations (NPOs) registered in Pakistan.

The MoU shall be terminated if the NGO/NPO receiving foreign contribution such as violates any or all provisions of this policy, engages in activities having implications for national security, promotes religious intolerance, ethnic violence or hatred, involves itself in money laundering, terror financing/activities, withdrawal of security clearance by a relevant agency, reasons to be intimated to concerned, undertakes any project in restricted and prohibited areas without permission and involves itself in concealment of facts, submission of false information, forgery, tampering, etc.

The application shall be submitted to the Ministry of Economic Affairs (MoEA) at least 60 days prior to the commencement of the foreign-funded project. All applications shall be scrutinised by an authorized officer of MoEA. Applications deficient in any material aspect shall not be entertained and as such be returned for re-submission if desired.

On provisional clearance from security agencies, MoU will be signed for six (6) months; further extendable for period(s) not exceeding 30 months in case no adverse report is received from the agencies. Applications complete in all aspects, shall be acknowledged by the authorized officer through online portal. After acknowledgement, the authorized officer of MoEA shall forward applications to relevant stakeholders for views/comments on same date via NGOs-Portal. Views/comments of stakeholders shall reach MoEA within 45 days from the date, MoEA forwards application of NGO. Any stakeholder may request for additional time not exceeding 15 days for processing. In case no comments are received from a stakeholder within 45 days, it shall deem to be approved, unless additional time (15 days) request is made by the concerned stakeholder. In any case the processing time shall not exceed 60 days from receipt of acknowledgement.

Based on recommendations of the stakeholders, an authorized officer of MoEA, not below the rank of BS-21, shall approve or reject the request of NG0s/NPOs receiving foreign contributions for MOU with MoEA; The MoUs approved shall be signed by the said authorized officer of MoEA.

The MoU with MoEA is only to the extent of specific project(s) as MOU will contain information as specified by the MoEA, including amongst others, the work plan, geographical areas of project and information with respect to source of financing. The MOU will be valid for a period up to 3 years from the date of signing.

In case of any adverse report from any stakeholder, MoEA may issue a show cause notice to the concerned organization. If the response is not satisfactory, a special audit may be initiated by MoEA in coordination with relevant registering authority/concerned charity commission.

For redressal of grievance, the NGO/NPO may file a grievance petition against any decision of MoEA within 15 days before the Grievance Committee. The Grievance Committee shall be headed by the Secretary MoEA and comprising members from MO1, MOFA and Law Division.

The NGOs/NPOs shall not submit false information to MoEA at any stage of application; seek MOU with MoEA by means of fraud, false representation or concealment of facts; engage in activities having implications for national security or promote religious intolerance & hatred and ethnic violence; commence physical activity on foreign funded project, prior to approval and signing of MOU with MoEA; involve in money laundering, terror financing/activities; employ foreign nationals without prior security clearance involve in forgery, tampering of documents, corruption; employ any person(s) or in any capacity having links with person(s) who are fugitives, convicts or absconder or wanted by law enforcement agencies; allow its employees and staff members to engage in anti-state activities.

The power of exemption shall be exercised by the Minister in-charge of Ministry of Economic Affairs; Subject to compelling circumstances, the period of exemption can be extended for other six months by the Minister-in-charge of Ministry of Economic Affairs.