Not-for-profit bodies: Law to regulate foreign funding being studied

Government bringing new law to keep a close watch on INGOs/NGOs.

ISLAMABAD: The not-for-profit sector of Pakistan has recorded a considerable growth over the past decade with a significant increase in foreign grant and funding.

As a result, the government has long felt the need to regulate finances of the International Non-Government Organisations (INGOs) and local NGOs operating in the country. Already laws are in place that call for an annual audit of these organisations by independent and established audit firms, but the government is contemplating bringing new rules to regulate the incoming funds from foreign donors.

It is engaged in consultations with the Securities and Exchange Commission of Pakistan (SECP) to bring a new law to regulate the INGOs, local NGOs and individuals receiving and utilising foreign contribution.

The proposed law came under discussion in a meeting held under the chairmanship of the secretary law of the Ministry of Law, Justice and Human Rights.

The main objective of the law is to regulate the receipt and utilisation of foreign contributions for declared purposes as intimated by the management to the authorities concerned.

Under the law, INGOs will be required to seek registration with the Economic Affairs Division and sign a memorandum of understanding, the validity of which will be up to five years, but will be renewable for a further period. Local NGOs, however, will be required to obtain a registration certificate from the SECP.

Representatives of the SECP apprised the participants of the registration procedures for not-for-profit organisations and gave a presentation on salient features of the draft law.

In the light of the discussions, the Ministry of Law proposed some amendments to the draft, which would be incorporated by the SECP.

Published in The Express Tribune, January 9^th,  2015.

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