All NGOs to be registered in six months

Curbing terror financing

Failing organisations won’t be eligible for financial, banking services

ISLAMABAD: In order to curb terrorists’ financing, the federal and provincial governments have decided for registration of all entities, including non-profit organisations (NPOs), charities and non-governmental organisation (NGOs), under different laws within six months, and in case of failing these organisations will not be eligible to access financial and banking services in the country.

“There is need for an effective law to regulate and monitor activities of NPOs, charities and NGOs, receiving local and foreign funding,” one top official told The News on Friday, adding that it was a consensus achieved during a high-level meeting that aimed at curbing terrorists’ financing floating from inside and outside the country.

Both the federal as well as provincial governments have been directed to comply with these instructions to ensure registration of all such entities in six months period in a bid to implement National Action Plan (NAP), official sources confirmed to The News here on Friday.

According to documents tabled during recently held important meeting for curbing terror financing under chairmanship of Finance Minister Ishaq Dar in Islamabad, the federal and provincial governments were assigned to register the NPOs, charities and NGOs by extending them warning that all failing institutions to get registered with authorities under different laws of federal and provincial governments, will not remain eligible to access financial and banking services.

However, the Finance Division briefed the meeting that Security Exchange Commission of Pakistan (SECP) under Section 42 of Companies Ordinance 1984 carried out re-validation, re-registration and audit of accounts of all NPOs/ NGOs. Till now the SECP revoked licences of 197 NGOs and financial facilities/ banking accounts frozen through the State Bank of Pakistan (SBP), and action for the dissolution of such NGOs already started.

There are 159 NGOs where applications for renewal of licences are under process. As the government placed new mechanism to get security clearance through the Ministry of Interior from intelligence agencies, so their applications are so far in the process. Only 67 NGOs have so far been able to get their licences renewed after placing the new mechanism.

There are 423 NGOs registered under Section 42 of the Companies Ordinance 1984 which have completed five years after incorporation and required renewal/ revalidation of licences. The remaining 220 NGOs with age of less than five years are not required to make renewal of licences. There were total 643 NGOs registered as on 31-12-2014.

The examination of audited accounts of NGOs revealed that total 301 NGOs filed audited accounts with the SECP during 2011 to 2014. There are 78 NGOs where warning was issued for non-compliances with the requirements.

There are 85 NGOs showing satisfactory compliance with accounting standard while examination cases of 120 NGOs are in progress. There are eight NGOs where show cause notices have been issued and proceedings are in progress.

When contacted, Finance Minister Ishaq Dar said the lead ministry to registration of INGOs (International Non Governmental Organisations) is now the Ministry of Interior and the ministry has put in place an elaborate system for online registration of INGOs. Under the system, 114 INGOs have been registered while the INGOs with pending decision on registration are permitted to continue operating in Pakistan.

As for the local NGOs, the minister said, the registration  authorities are provincial governments and for registration of local NGOs, the Ministry of Interior is coordinating with the provincial governments.

Dar said the registration of NGOs is a complex issue and time consuming process which has now been streamlined for the first time ever. Action under the law including stopping access to banking and financial services will be taken against INGOs/ NGOs that do not register and continue to operate in violation of national laws, he concluded.