Government of Pakistan
MINISTRY OF ECONOMIC AFFAIRS
Islamabad, ________June, 2021
No.1(5)NGO/05: In pursuance of Schedule-II (9) of the Rules of Business, 1973 and the ECC decision No.____________, dated_______________, Economic Affairs Division hereby notifies this policy in order to regulate and enhance the effectiveness of foreign funding being availed and utilized by NGOs/NPO registered in Pakistan.
- Short Title, Extent and Application
- This Policy shall be called ‘Policy for NGOs/NPOs receiving Foreign Contributions– 2021’
- This policy shall extend to whole of Pakistan.
- It shall apply to all NGOs/NPOs registered/incorporated in Pakistan and desirous to receive foreign contributions.
- Non-profit organizations established by the federal or provincial governments desirous to avail foreign contribution as NGO/NPO shall fall in the ambit of this policy. 
- It shall come into force on such day and date as the Economic Affairs Division may notify in the Official Gazette.
- This policy shall supersede all previous policies, instructions and clarifications of Economic Affairs Division, on the aforesaid subject. However, the MOUs already signed shall remain unaffected till their expiry.
This Policy shall not apply to the following:
- Individual contributions by Pakistani Diaspora for charitable purposes not exceeding US$10,000/- per transaction and US$ 120,000/- per year.
- Statutory bodies and organizations established through a federal or a provincial law.
- Universities/Colleges established by the Federal or a Provincial government or chartered by them.
- To facilitate contribution of NGOs/NPOs towards socio-economic development of Pakistan within the ambit of relevant national policies and laws.
- To develop a spirit of partnership and shared responsibility between EAD and NGOs/NPOs.
- To encourage participation of credible organizations for effective utilization of foreign contributions while ensuring transparency and oversight.
- NGOs/NPOs: - Definition of NGO/NPO, for the purposes of this policy, will be the same as provided in relevant prevailing laws of Pakistan.
- Foreign Contribution: Foreign Contribution includes moneys, services and goods which emanates from outside Pakistan.
- Eligibility criteria for NGOs/NPOs:
- Is registered as non-profit organization in Pakistan
- Letter of commitment from a foreign donor.
- At least two years work experience in the relevant field.
- Annual Work Plan for Projects.
- Active Tax Payer with the Federal Board of Revenue.
- Submission of Application:
- An application for signing of MOU with EAD shall be received and processed through online NGO Portal (ead.gov.pk)
- NGO shall submit its application to EAD for approval with all requisite documents and information (as per checklist available at NGO Portal).
- Application shall be submitted to EAD at least 60 days prior to commencement of foreign funded project(s).
- Applications deficient in any manner will not be accepted by the NGO Portal, and deficiency will be indicated electronically.
- All applications shall be scrutinized by an authorized officer of EAD.
- Applications complete in all aspects, shall be acknowledged by the authorized officer through online portal.
- The authorized officer of EAD will further process applications of NGO for views/comments of stakeholders.
- Views/comments of stakeholder shall reach EAD within 45 days from the date when EAD forwards application of NGO, except for the additional time requested for clearance.EAD may allow, on request, additional time not exceeding15days.
- In case no comments are received from a stakeholder within 45 days, it will be assumed as no objection and EAD will proceed with the decision accordingly.
- The application of NGO for signing of MOU with EAD shall be decided in any case within 60 days.
- Approving Authority:
Based on the application documents, reports and recommendations of the stakeholders, Secretary EAD will be the competent authority to approve or reject the request of NGOs/NPOs for MOU with EAD for foreign funded projects.
Secretary, EAD will authorize on his behalf one of the officers (BS-20) of EAD to sign MOUs with approved NGOs/NPOs.
- Memorandum of Understanding (MOU)
- After approval of the application, EAD will enter into a Memorandum of Understanding (MOU) with the NGO/NPO.
- MOU will contain information as specified by the EAD, including amongst others, the work plan and geographical areas of project and information with respect to source of financing (approved template of MOU is placed on website i.e. www.ead.gov.pk).
- MOU will be valid for a period upto 3 years from the date of signing.
- NGO shall submit online application for renewal of MOU 60 days prior to expiry of valid MOU. (ead.gov.pk)
- Renewal of MOU is meant to cover time extension of the same project with the same donor, scope and thematic area, and period of renewal shall not be more than 2 years
- The cases of renewal of MOU shall be decided at the level of Secretary, EAD provided there is no adverse report from any of the stakeholders during the project period
- An NGO may also apply to EAD for approval of additional project(s) with the requisite documents and details of the proposed projects as stipulated by the EAD through e-portal(checklist at www.ead.gov.pk)
- The authorized officer of EAD will refer application for approval of additional project(s) to relevant stakeholders for views/comments through online portal.
- Views/comments of stakeholder shall reach EAD within 30 days from the date when EAD forwards application of NGO.
- In case no comments are received from a stakeholder within 30 days, it will be assumed as no objection and EAD will proceed with the decision accordingly.
- Monitoring and Evaluation:
- Submit to EAD annual report of its projects.
- Have its accounts audited from well reputed and registered audit firm and submit audit report to EAD through NGO portal.
- Submit project completion report on NGO portal of EAD.
- Quarterly submit to EAD details of foreign contributions received or expended, details of beneficiaries including third party.
- not use any other bank account except the designated account(s) intimated to EAD at the time of application.
- In case of receipt of an adverse report from a relevant stakeholder, EAD may initiate
Special audit or field inspection of activities/record of the concerned NGO within the time specified by EAD.
- Suspension/ Termination of MOU:
- In case of violation of any provisions of this Policy and/or the MOU, EAD shall have the right to suspend or terminate the MOU with the NGO/NPO concerned.
- NGO/NPO found engaged in activities having implications for national security or promote religious intolerance &hatred and ethnic violence shall lead to suspension/ termination of the MOU.
- NGOs/NPOs found involved in money laundering, terror financing/activities will be bound to close their operations immediately and will also be liable to prosecution in accordance with the relevant laws
- Withdrawal of security clearance by a relevant agency
- EAD shall immediately bring the suspension or termination of MOU into the notice of NGO/NPO concerned, donor, MOI and concerned home departments.
- Appeal Against Rejection:
- NGO/NPO may file an appeal/review petition against the decision of EAD within 15 days of issuance of regret letter.
- An NGO may seek review against the decision by providing justification and additional supportive documents and information. Review appeal will be filed through online portal.
- Review Committee headed by the Minister of EAD, and comprising Secretaries of EAD, Interior, MoFA, Chairman FBR and senior officials of relevant security agencies will deliberate and decide the appeal.
- Review Committee shall give its decision on appeal within 30 days from the date of receipt of appeal from applicant NGO. The decision of the Review Committee shall be
NGOs/NPOs shall not:
- Submit false information to EAD at any stage of application.
- Seek MOU with EAD 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 EAD.
- Involve in money laundering, terror financing/activities
- Employ foreign nationals without prior security clearance.
- Employ any person(s) or in any capacity make link with person(s) who is fugitives, convicts or absconder or wanted by law enforcement agencies.
- Allow its employees and staff members to engage in anti-state activities
- Undertake projects in restricted and prohibited areas.
- Immediately stop work on any un-approved project which shall be communicated to concerned NGO by EAD and the same shall be brought into the notice of concerned provincial authorities and donor.
- submit details of foreign contributions received from donors.
- maintain local bank accounts in Pakistan in the name of NGO duly intimated to EAD, for the purpose of project/organization related transactions.
- all payments above Rs.25,000/- per transaction shall be made through bank to bank transfer. EAD may enhance this limit from time to time.
- Submit complete details of third party contractors and service providers including consultants and details of payment made.
- Seek prior written permission for visit of foreign staff to restricted/prohibited areas.
- Make full disclosure i.e. provide to EAD, any information as and when required.
- NGOs that enter into MoU with EAD after due security clearance by relevant authorities will not be required to obtain further NOCs or permissions from any other federal, provincial or local authority. However, special permission/NOCs from relevant authorities will be required for security sensitive/restricted areas, as declared from time to time.
- NGOs/INGOs and organizations, both local and international, will seek foreign contributions and partnerships with development partners, including UN agencies, within the framework of this policy or INGOs policy.
- This policy does not apply to those NGOs who do not seek direct or indirect foreign contribution from foreign donors. Such NGOs are not required to enter into MoU with EAD for their locally funded projects.
- NGOs can seek foreign contribution from foreign donors except from those donors not permitted by Government of Pakistan.
- MoU with EAD is only to the extent of specific project(s). Non approval of any project by EAD has nothing to do with other projects and works of those NGOs.
- For-profit organizations, as a matter of policy are not supposed to receive foreign contributions from donors. However, those organizations and companies desirous of availing foreign contribution or entering into partnership arrangement with foreign donors will also fall in the ambit of this policy or INGOs policy.
If the Economic Affairs Division is of the opinion that it is in the public interest (such as in situations of disasters and emergencies at national or local level) it may, subject to such conditions that it may specify, exempt an organization or class of organizations from all or any of the provisions of this policy for a period not exceeding six months. The power of exemption shall be exercised by the Minister in-charge.
Subject to compelling circumstances, the period of exemption can be extended by six months by the authority.
- Removal of Difficulties:
If any difficulty arises in giving effect to any of the provisions of this Policy, or in day to day operational difficulties, Economic Affairs Division may make such order, not inconsistent with the existing provisions for removal of difficulty within 6 months of notification of this policy.
(Asad Ullah Nasar)
Deputy Secretary (NGOs/INGOs)
- Minister for Science & Technology, M/O Science & Technology, Islamabad
- Minister of State for Information Technology, M/o Information Technology, Islamabad
- Chairman, Securities & Exchange Commission of Pakistan, Islamabad
- Deputy Governor, State Bank of Pakistan, Islamabad
- Secretary , Economic Affairs Division, Islamabad
- Secretary, Cabinet Division, Cabinet Secretariat, Islamabad
- Secretary, Ministry of Foreign Affairs, EAD of Pakistan, Islamabad
- Secretary, Ministry of Interior, EAD of Pakistan, Islamabad
- Secretary, Ministry of Finance, EAD of Pakistan, Islamabad
- Chairman, Federal Board of Revenue, EAD of Pakistan, Islamabad
- Chairman, P&D, EAD of the Punjab, Lahore
- Additional Chief Secretary (Dev.), EAD of Sindh, Karachi
- Additional Chief Secretary (Dev.), EAD of KPK, Peshawar
- Additional Chief Secretary (Dev.), EAD of Balochistan, Quetta
- Additional Chief Secretary (Dev.), EAD of Gilgit-Baltistan, Gilgit
- Additional Chief Secretary (Dev.), FATA Secretariat, Peshawar
Non-profit organizations established by government(s) may avail foreign contributions either by following the procedure as is applicable to government entities or seek registration under this Policy.