On October 4, 2023, the Economic Affairs Division (EAD) signed Memorandums of Understanding (MoUs) with 372 local NGOs receiving foreign funding. This was revealed during a meeting of the Senate Standing Committee on Economic Affairs, chaired by Senator Faisal Saleem Rehman, which focused on the operations and funding of International Non-Governmental Organizations (INGOs) and local NGOs in Pakistan.
Overview of INGO Policy and MoU Process
The meeting featured detailed briefings from the Ministry of Interior, the EAD, and the Ministry of Foreign Affairs (MoFA) on the role and regulations surrounding foreign-funded INGOs operating in Pakistan. These organizations are engaged in various thematic areas and operate across different geographical locations. The session also reviewed the 2015 INGO Policy, which requires all INGOs to register with the Ministry of Interior.
This policy involves consultation with critical national institutions such as the Security & Exchange Commission of Pakistan (SECP), the Federal Board of Revenue (FBR), ISI, and IB. As of now, 114 INGOs have registered with the Ministry of Interior. Following an extensive consultation process, the Federal Cabinet approved a new policy for local NGOs in November 2022, aimed at streamlining the approval and regulatory processes for organizations receiving foreign funds.
A key feature of this policy is the introduction of an online portal for local NGOs to submit their MoUs to the EAD. This system has already approved 372 local NGOs, creating a more transparent and streamlined procedure for managing foreign funding.
Checks, Balances, and Future Regulations
Ministry officials clarified that INGOs are required to provide detailed information on their funding to the EAD. A comprehensive list of INGOs and their operational focus areas was presented to the committee. Despite INGOs operating with a degree of independence, the government is working on developing a more formal policy through an Act of Parliament to better regulate these organizations. The committee requested a draft of this Act for review, ensuring that INGO activities align with national priorities and safeguard national security.
The Senate committee also called for district-wise details of INGOs operating in Pakistan and progress reports on their projects. The Ministry of Foreign Affairs emphasized its role in facilitating INGO work while ensuring alignment with Pakistan’s development needs. Regular consultations with foreign missions are held to maintain this alignment.
Disaster Relief and International Assistance
Representatives from the National Disaster Management Authority (NDMA) and Provincial Disaster Management Authorities (PDMAs) briefed the committee on the use of international funds for disaster relief, particularly in flood-affected areas. The NDMA detailed its emergency response efforts, which involved collaboration with local entities such as the Pakistan Army and district administrations to distribute relief supplies.
During the briefing, it was revealed that Turkey was the largest contributor to disaster relief efforts, providing 60-65% of the total international assistance, followed by China and the UAE. The NDMA also provided ex-gratia assistance of 1 million rupees to the families of deceased victims. Despite operating on a limited budget, NDMA’s efforts extended to nearly all flood-affected districts.
Future Directions
The committee commended NDMA’s response to recent floods and called for improvements in future disaster management strategies. As discussions on the regulatory framework for INGOs and local NGOs continue, the government aims to balance effective oversight with fostering international collaboration for development and disaster recovery in Pakistan.
