Lec No 9 INGO Rules For Pakistan

NON PROFIT (NGO)
GOVERNANCE
Course Code: GP-518A
Program: BS
Ujala Siddiq, PhD Scholar,

NDU, Islamabad.
Non Profit (NGO) Governance
Textbook
The Management of Non-Governmental
Development Organizations - 2nd edition, by
David Lewis, published by Routledge 2005,
ISBN 0-203-00216-4 Master e-book ISBN.
Non Profit (NGO) Governance
LECTURE - NINE
Starting an INGO in Pakistan

Starting an NGO in Pakistan
Scope
• Policy for regulation of International Non-
governmental Organizations (INGOs) in Pakistan
(2015)
• Salient features
International Red Cross-Pakistan

What is an INGO
• An international non-governmental organization
(INGO) has the same mission as a non-
governmental organization (NGO), but it is
international in scope and has outposts around the
world to deal with specific issues in many countries.
What is an INGO
• An INGO may be established by private philanthropy or as an
adjunct to existing international organizations
• A surge in the founding of development INGOs occurred
during World War II, some of which would later become the
large development INGOs like SOS Children's Villages, Oxfam
, etc
• International Non-governmental Organizations can further be
defined by their primary purpose.
• Many of the large INGOs have components of both
operational projects and advocacy initiatives working
together within individual countries.
REGULATORY FRAMEWORK FOR INGOs IN PAKISTAN

REGULATORY FRAMEWORK FOR INGOs IN PAKISTAN
Name the INGOs which are registered

under the regulatory framework for
INGOs in Pakistan?
Regulatory Framework
• International NGOs are required to register and agree a Memorandum
of Understanding (MoU) with the Economic Affairs Division. (There
are 64 INGOs whose MoUs have been signed)
• In addition the Minister of Interior is responsible for vetting foreign
staff before registration is approved, and grants permission to operate
in particular areas.
Regulatory Framework
• Approved INGOs by MoI - 66
• MOUs signed - 64
• Under Process with MoI - 72
GOVERNMENT OF PAKISTAN
MINISTRY OF INTERIOR
Policy for regulation of International Non-governmental
Organizations (INGOs) in Pakistan (2015)
• This policy regulates the registration, working, funding,
monitoring and other related aspects pertaining to all types of
International Non-Governmental Organizations (INGOs)
functioning in Pakistan.
• Accountability of all stakeholders and transparency in
functioning are the key issues in good governance.
• INGOs are expected to conform to international best practices
in these areas.
OBJECTIVES OF THE POLICY
• To facilitate and streamline the registration and functioning of
INGOs while ensuring that they abide by the relevant laws and
norms of Pakistan.
• To encourage the INGOs to build a synergistic relationship with
the Government and private sector, at the local, provincial and
national levels,
OBJECTIVES OF THE POLICY
• To identify systems by which the Government may work
together with INGOs
• To enable the INGOs to receive legitimate foreign contributions
or foreign economic assistance through legal channels and
appropriately utilize these financial resources on the agreed
areas of public welfare
GOVERNMENT OF PAKISTAN – MOI
Policy for regulation of International Non-governmental Organizations
(INGOs) in Pakistan (2015)
REGISTRATION AND FUNDING

• INGOs receiving foreign contributions (funds, materials and
services) emanating from outside Pakistan or utilizing foreign
economic assistance will require prior registration exclusively
with the Ministry of Interior (MOI).
• INGOs shall not raise funds and/or receive donations, locally,
unless specifically authorized.
• The INGOs shall declare to the Government of Pakistan all
foreign funds, along with the terms and conditions of those
funds, as well as details of all bank accounts maintained by
them.

• There shall be an INGO Committee, chaired by Secretary
Interior, in Ministry of Interior, to facilitate, streamline and
monitor the working of INGOs.
• The INGO Committee will be the sole authority for approving
registration of INGOs.
• All INGOs presently operating in Pakistan will be required to
apply for fresh registration on the newly introduced electronic
version of the registration form, within 60 days from the date of
proclamation of this policy.

• Scrutiny of applications will be done by the INGO Committee
within a period of 60 days.
• Approved INGOs will be registered for specific field(s) of work
and specified location(s) or areas of operation, after
consultation with the relevant Federal and Provincial
authorities, and in line with their needs and national priorities
of Pakistan.

• The INGO may apply for renewal of registration four (04)
months prior to expiry of registration.
• Pending final decision on application for registration, there will
be no interim permission to work. However, previously
registered INGOs will be allowed to continue their operations
for six months or until final decision on their applications for
fresh registration.
FUNCTIONING AND MONITORING
• Subject to approval, the INGO will sign a Memorandum of
Understanding (MOU) with the Government for a period upto 3
years from the date of signatures. A draft MOU is attached to
this policy and can also be downloaded.
• The INGOs will only be allowed to establish headquarters and
field offices, open bank accounts, and hire local employees after
registration with the Government. No unregistered INGO shall
be allowed to function or issued visas for its personnel.

• All INGOs shall submit an Annual Plan of Action detailing all
envisaged projects and the respective budgetary allocations to
Economic Affairs Division (EAD) and Ministry of Interior (MOI) at
the time of registration, and subsequently on an annual basis.
• EAD will share these details with all concerned.
• The Planning and Development Departments of the Provincial
Governments can also review the activities of the INGOs.
• INGOs shall only provide assistance (monetary and/or material)
to a local or international NGO after approval of the
Government.
• Security clearance shall be obtained by Pakistan Missions
abroad before issuing initial visa to the foreign nationals
intending to work for INGOs.
• Maximum duration of visas for non-Pakistani nationals working
for the INGOs, will be one year.
• The foreign employees of the INGOs shall seek prior permission
of the Ministry of Interior (MOI) for visiting areas outside their
designated areas of activities.
• Violation may lead to cancellation of visas.
• Business / visit visas shall not be issued to INGOs staff.
• There will be regular and effective monitoring of INGOs’
activities and work throughout Pakistan.
• MOI will periodically update relevant authorities about the
status and areas of operation / of INGOs enabling them to
ensure effective vigilance on INGOs.
• The INGOs shall not engage in money laundering, terrorist
financing, weapon smuggling, anti-state activities or maintain
links with the other organizations.

• Breach of security or involvement in any activity inconsistent
with Pakistan’s national interests, or contrary to Government
policy, will lead to cancellation of registration.
• Likewise, INGOs shall not take part or assist in any kind of
political activities, conduct research or surveys unrelated to
their TORs. Violation may lead to cancellation of registration.
• Any information on violation of terms of reference by an INGO
received by any Ministry / Department / Agency will be
expeditiously shared with all concerned.
TRANSPARENCY AND DISCLOSURE
• The INGOs shall be obliged to provide any information that the government
may require from time to time.
• There shall be proper regulation and monitoring of INGOs’ sources of
funding, their accounts and tax returns. INGOs not fulfilling disclosure
requirements will be proceeded against, under prescribed rules and
regulations.
• INGOs will be required to have their financial audit conducted by the
auditors approved by the INGO Committee.
• The INGOs shall fulfill reporting requirements mandated by the Government
on the prescribed formats. The INGO Committee will devise these reporting
formats as per requirements from time to time.
• The INGOs shall be required to make payments above Rs.20,000/- (Twenty
Thousand) in Pakistan through banking channels.
REVIEW OF REGISTRATION
• Any decision on termination of INGO registration shall be
implemented within a period of 60 days, allowing such an INGO
to fulfill all contractual obligations.
• Winding up of operations will be in accordance with the laid
down procedure to be notified by the INGO Committee.
Cancellation of registration cannot be challenged in any court of
law.
MOU BETWEEN THE GOVERNMENT OF ISLAMIC REPUBLIC OF PAKISTAN

AND
[NAME OF ORGANIZATION]
• This MOU shall be governed by the Constitution, laws, rules,

regulations and policies of the Government of Pakistan.
• The Government may:
• Allow (Organization) to receive foreign contributions including
funds, materials and services, emanating from declared
sources, through legal channels, subject to reporting
requirements.
– Allow (Organization) to open, maintain and operate local
bank accounts for the execution of its work.
Obligations of the Organization

• Use funds, materials and services received by it as foreign
contribution or foreign economic assistance from declared
sources, through legal channels, for its specified work ……
• Obtain prior concurrence of the Government for any additional
funding or different source of funding other than that specified
by the Organization.
• Appoint a representative and other senior management
personnel as appropriate, who will manage the work and
supervise the staff on behalf of the Organization with the
Government, and the Provincial / local Governments.
• Employ foreign nationals against not more than 10% of the
total staff positions, and give preference to Pakistan nationals
………

• Obtain prior written permission from the Government for visits
to prohibited areas….
• Ensure that all staff are informed that while they are in
Pakistan, they shall be subject to (a) the laws and regulations of
Pakistan,….
• Provide lists of its foreign and locally hired staff to the
Government …….
• Ensure that all staff (foreign and local) working in Pakistan shall
pay applicable taxes
• Ensure that the administrative expenses do not exceed 30% of
the project cost.

• Submit to the Government every six months and when required, written
reports covering its activities and progress on the projects….
• Submit, on yearly basis, independent or third party evaluation ..
• Prepare its annual financial statements and annual audit done..
• Ensure that its entire work in Pakistan is undertaken in accordance with the
Constitution, laws, rules, regulations and policies of Government of
Pakistan.
• Inform respective Provincial Governments and concerned local governments
/ district authorities regarding its programs / projects…
• Provide access to premises, documentation, equipment and data relating to
the organization and its local partners activities in Pakistan.

The Organization shall not:-
• Undertake programs, projects and activities in contravention of the
Constitution, laws, rules, regulations and policies of the Government
• Establish headquarter and field offices, open bank accounts, and hire staff
prior to approval of registration in Pakistan.
• Raise funds and/or receive donations locally, unless specifically authorized.
• Seek change in visa category.
• Engage in money laundering, terrorist financing, weapon smuggling, anti-
state activities and maintaining links with proscribed organizations.
• Take part or assist in any kind of political activity; conduct research or
survey unrelated to their approved areas of work…
MOI - INGO Registration Form

Check List
(1) Acknowledgement of EAD that the Annual Plan of Action has been
submitted
(2) Letter from the concerned Embassy verifying the credentials of the INGO
(3) Proof of Registration in the country of origin
(4) Detailed annual budget covering Administrative and Development
components
(5) Approval of Commissioner. Inland Revenue concerned under section 2 (36)
of the Income Tax Ordinance, 2001
(6) Tax Returns (copies) for last 3 years (For Renewal of registration)
MOI - INGO Registration Form

Check List
(7) Annual Reports for three years
(8) Financial Statements for last three years
(9) Funding guarantee letter containing donor commitment
(10)Proof of local residence (lease agreement, etc) with complete
address/telephone numbers and list of local contacts in Pakistan (For
Renewal of registration)
(11) Power of attorney from the Head Oce authorizing its designated
representative for applying for registration in Pakistan
(12) Application letter addressed to Secretary Interior requesting to register an
INGO

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NON PROFIT (NGO)

Ujala Siddiq, PhD Scholar,

Starting an INGO in Pakistan

International Red Cross-Pakistan

REGULATORY FRAMEWORK FOR INGOs IN PAKISTAN

REGULATORY FRAMEWORK FOR INGOs IN PAKISTAN

Name the INGOs which are registered

REGISTRATION AND FUNDING

REGISTRATION AND FUNDING

REGISTRATION AND FUNDING

REGISTRATION AND FUNDING

FUNCTIONING AND MONITORING

FUNCTIONING AND MONITORING

MOU BETWEEN THE GOVERNMENT OF ISLAMIC REPUBLIC OF PAKISTAN

• This MOU shall be governed by the Constitution, laws, rules,

Obligations of the Organization

Obligations of the Organization

Obligations of the Organization

Obligations of the Organization

MOI - INGO Registration Form

MOI - INGO Registration Form

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