On 12 June 2015, international NGO Save the Children, with over three decades of presence in Pakistan, was given a 15-days ultimatum to wind up its operations in the country. Following immense international pressure, the Pakistani government subsequently backtracked from the order. The ban came in the wake of accusations linking the aid agency to a fake vaccination programme used in the hunt for Osama bin Laden.
The government of Pakistan is presently mulling the proposed ‘Foreign Contribution Act 2015’, to regulate NGOs working in the country and to closely monitor their operations. The act was initiated in 2013, but was not implemented due to the apprehension of several NGOs. The government’s motive in banning ‘Save the Children’ was not clear, with differing official statements, but many development experts cited economics as the real motivation to rein in INGOs.
There seems to be a lack of consensus among policy makers on how to regulate a sector that remains central to serving a large number of poverty stricken Pakistanis. In the absence of any regulatory process, some two-dozen INGOs have been given permission to continue their operations according to media reports, while another five-dozen have been allowed to work under interim arrangements.
The proposed Foreign Contribution Act is in violation of a UN Human Rights Council resolution of 21 March 2013, which bars governments from putting restrictions on Civil Society Organizations’ access to foreign funds. NGOs in Pakistan are formed independently of the State but get registered voluntarily, in order to obtain authorization to pursue activities intended for public benefit.
Under the draft law, mandatory registration would be required for all persons and international NGOs receiving foreign funding, and be applicable to all persons within Pakistan, Pakistanis outside Pakistan, and international NGOs operating in Pakistan. The application for registration would require full details on the sources of foreign funding, as well as detailed information on the activities of the concerned person or NGO. Certificates issued for registered persons and memorandum of understanding issued for registered NGOs would be subject to cancellation at the will of the federal government, based on extremely broad reasons, including the use of foreign funding for “undesirable purposes, which are against the public interest”, providing significant scope for arbitrary application.
The draft law also requires that foreign and foreign-funded NGOs commit not to employ more than 10 percent of foreign national staff, giving preference to Pakistan nationals for key positions. These NGOs must have their accounts annually audited by a registered chartered accounting firm, and should annually submit independent or third party evaluations of their work to various government authorities. Moreover, any utilization of funds equivalent to one million rupees or above will need to obtain prior official approval. Any misrepresentation of resources and funding shall be punishable by imprisonment for one year or with a fine.
The Economic Affairs Division’s decision to exert greater control over the funds that are available to INGOs is at the heart of the controversy. The new regulations are being passed to increase bureaucratic hurdles for organizations as the government attempts to establish its hegemony over the social sector. Unlike ‘on-budget’ grants, which is money routed through government channels, INGOs receive their funding through ‘off-budget’ grants, which are routed by the donor country to organizations of their own choosing to carry out projects of their liking. Due to complaints of corruption, foreign donors and governments have routed these funds directly to NGOs, irking the government of Pakistan. It must be noted that while the 18th Amendment of the Constitution requires that NGOs are to be regulated by provincial governments, the federal government has kept this control exclusively to itself. Despite this, the government cannot account for 65 percent of foreign funding for NGOs in the country, including foreign NGOs and religious schools, largely owing to the lack of a legislative and regulatory structure governing such organizations.
These NGOs in Pakistan are furnishing humanitarian assistance to the country’s most vulnerable people, and may be disrupted by the current disabling environment. The proposed law requires permission from the Ministry of Interior on establishment and disbursement of funds; in Pakistan, such approval is based on vetting by intelligence agencies. The intelligence agencies will therefore also be given a slice of the foreign development funds. International donor agencies have rightly pointed out that the move may seriously jeopardize the allocation of funds to Pakistan, harming the cause. Many civil right activists have pointed out that while the State has failed to ban militant organizations operating openly throughout Pakistan, in many cases registered under different names, it has not missed the opportunity to unfairly targeting NGOs.
Rather, the government should seek to forge a strategic partnership with NGOs and other stakeholders operating in the non-profit sector, in order to achieve its own long-term development goals. Thousands of volunteers are working through these organizations and contributing towards poverty alleviation, enhancing literacy, improving health services and other social sectors. The government should work towards creating an environment conducive for them to operate in and contribute effectively to national development. It is the Executive’s responsibility to ensure that security concerns are not misused, as a premise for control over resources.
In the absence of effective local governance, the masses are not empowered to solve their own problems; they look to development NGOs for redress instead. The government should thus work towards empowering its citizens. Allowing local governments to manage funds and disburse them will result in better resource management, reducing the need for foreign NGOs to overlook or assist in development schemes.
