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Presented by
Farhad Zulfiqar
       st113222
Contents
1.    NGO definition and introduction
2.    History of NGOs in Pakistan
3.    Laws governing the NGOs in Pakistan
4.    Regulatory framework for NGOs in Pakistan
5.    Types and activities of NGOs in Pakistan
6.    Role of government in NGOs in Pakistan
7.    Role of donor support in NGOs in Pakistan
8.    Impact of NGOs on poverty in Pakistan
9.    Problems of NGOs in Pakistan
10.   Prospects for NGOs in Pakistan
11.   How NGOs can be improved in Pakistan?
NGO definition and introduction
 The World Bank defines NGOs as "private organizations
  that pursue activities to relieve suffering, promote the
  interests of the poor, protect the environment, provide
  basic social services, or undertake community
  development" (Operational Directive 14.70)
 Many NGOs are active in the traditional social sectors:
  emergency       support,        rehabilitation,   poverty
  reduction, maternal and child health, family planning and
  education.
 Most of the NGOs in Pakistan are unregistered, small scale
  and their funding source is philanthropy.
History of NGOs in Pakistan
 The origin of NGOs in Pakistan goes back to partition 1947, when
    British India was divided into two states India and Pakistan.
   Many voluntary organizations (though not referred as NGOs at that
    time) were formed to provide humanitarian aid to refugees pouring
    into the newly established country.
   During the first few years of Pakistan, many of the NGOs concentrated
    on rehabilitation and basic services such as health and education.
   The next upsurge in the formation of NGOs took place in the late
    1970s, when the Martial Law government promoted its philosophy of
    social work and welfare.
   During 1980s, many new NGOs merged to avail of the funding set
    aside for development through local bodies ( district, municipal , town
    and local councils).
   In the early 1990s, there was another rapid increase in NGOs, when
    new organizations were formed to take advantage of available funding
    under the People’s Works Programme.
History of NGOs in Pakistan
(Contd.)
 Unlike past during 2000s more NGOs emerged in the field of advocacy
    and development.
   It is difficult to estimate the number of NGOs working in Pakistan.
   According to a study by UNDP the number is between 8,000 to
    16,000, if unregistered NGOs and CBOs are added, the number could
    be between 25,000 to 35,000. (This number is 45000 by Aga Khan
    Foundation)
   Funding coming to the government is many times higher than the
    amount of funds coming to NGOs.
   Only few NGOs have comparable credentials, sufficient
    resources, coverage, linkages, delivery mechanisms and documentation
    systems.
   According to Canadian International Development Agency (CIDA)
    there are less then 100 effective NGOs in Pakistan, but thousands of
    generally weak CBOs.
Laws governing the NGOs in
Pakistan
 There are six laws under which NGOs operate in Pakistan
   1.   Societies Registration Act, 1860 (for professional, cultural and
        educational bodies)
   2.   The Trusts Act 1882, (it provides legal cover for private acts of
        charity)
   3.   Cooperative Societies Act, 1952
   4.   The Voluntary Social Welfare Agencies (Registration and
        Control) Ordinance, 1961 (to regulate and assist the development of
        NGOs undertaking welfare activities)
   5.   The Companies Ordinance, 1984 (it allows NGOs to set themselves
        as nonprofit companies)
   6.   Income Tax Ordinance, 2001 (this Act sets out the tax exemptions
        which NGOs are eligible for)
    The foreign NGOs and those in receipt of government funding are
     required to register with the Economic Affairs Division and Central
     Board of Revenue respectively.
Regulatory framework for NGOs in
Pakistan
 Registration requirements
   The Ministry of Social Welfare and Special Education and the
    Provincial Social Welfare Departments are responsible for
    registering and monitoring organizations under the Voluntary Social
    Welfare Agencies (Registration and Control) Ordinance 1961.
   The District Offices of the Industry Department are responsible for
    registering organizations under the Societies Registration Act 1860.
   Not-for-profit companies are required to apply for a license from the
    Securities and Exchange Commission (SEC).
   The income tax exemptions are granted by Ministry of Finance and
    these are not automatically granted. NGOs can apply for exemptions
    if they are registered with Central Board of Revenue.
Regulatory framework for NGOs in
Pakistan (Contd.)
 Reporting requirements
   Organizations registered under the Voluntary Social Welfare Agencies
    (Registration and Control) Ordinance 1961 are required to maintain
    accounts and submit an annual report and audit report to District Officers.
   Registered Societies must submit a copy of the membership list annually.
   Not-for-profit companies must submit annual returns, audited accounts
    and other documents for examination. Accounts are open to public scrutiny.
   The Economic Affairs Division (EAD) asks International NGOs to explain
    their plans. The EAD role is strategic, to coordinate activities of government
    and NGOs so as to minimize duplication of effort and focus on unmet
    needs.
   NGOs, which benefit from tax exemptions, are required to submit annual
    audited accounts, a list of donors and beneficiaries and other financial
    information to the Central Board of Revenue.
Types and activities of NGOs in
Pakistan
NGOs in Pakistan can be divided into several broad categories:
1.    Advocacy and lobbying NGOs
   i.      Advocacy and lobbying NGOs are well-known, though their actual impact is low.
   ii.     These include organizations focused on legal rights, literacy, women’s
           issues, children, minorities and human rights.
2.    Policy advocacy NGOs
   i.      Policy-based NGOs are relatively new in Pakistan.
   ii.     Their purpose is to participate in and initiate dialogue about policy issues, be it
           with the government, other NGOs, or international organizations.
   iii.    These are involved in international and regional networking. They most often do
           not get involved in project implementation or service delivery.
3.    Emergency, rehabilitation and relief organizations
   i.      The majority of NGOs in Pakistan fall into this category.
   ii.     Except some very large organizations most of smaller grass-root organizations
           dominate this category.
4.    Those involved in implementation of development projects and programmes
5.    Service delivery organizations and CBOs
Role of government in NGOs in
Pakistan
 The Pakistan government has been positive towards NGO
  development
    In the first five year plan (1955-60) a permanent social welfare
     section was created which is now part of Planning Commission
    Recently in seventh and eighth five year plans contain supportive
     policy for assistance for NGOs
    The income tax ordinance exempts NGOs from income tax which
     has helped NGOs in terms of sustainability and resources.
 Many government sponsored institutions provide financial
  grants to NGOs
    National (and provincial) Social Welfare Councils, Zakat
     Councils, Social Action Programme, National (and Provincial)
     Education Foundations, National (and Provincial) Health
     Foundations, Trust for Voluntary Organizations, National Trust for
     Population Welfare etc.
Role of donor support in NGOs in
Pakistan
 The term donor is used for bilateral or multilateral
  funding agencies in Pakistan.
 It does not include Pakistani philanthropic
  organizations, or individual citizens.
 Funding agencies typically provide funds for economic
  and public sector development, particularly for large-
  scale infrastructure development.
 In the absence of internal resources, bilateral and
  multilateral funding agencies have received an
  important role in social development and support to
  NGOs.
Role of donors support in NGOs in
Pakistan (Contd.)
 The multilateral agencies include various United Nations
  agencies focusing on
  education, health, water, nutrition, safe
  motherhood, reproductive health and gender.
 Among the bilateral sources of aid
  Canada, Germany, Japan, United States and United
  Kingdom are noteworthy in their contributions to the
  social sector.
 There are also several INGOs active in Pakistan, which
  include Oxfam, Save the Children, Asia Foundation, British
  Council, Action Aid and Christian Social Services.
 Since NGOs do not participate in the project planning
Impact of NGOs on poverty in
Pakistan
 ‘working for the poor’ whether this is in ‘relief’ mode or in
  pursuit of more durable ‘development’ solutions to chronic
  poverty [Mustafa (1992); Narayan et al. (2000)].
 There has been mixed record of NGOs performance in
  Pakistan.
 Relations between NGOs and the government have at
  time, marked by tension.

 NGOs are reported to have not moved forward to address
  fundamental inequity issues that create the problems in
  the first place [Mumtaz (1997)].
 NGOs in Pakistan mostly prefer to work on relief rather
  than focusing on problems of poverty and inequality.
Problems of NGOs in Pakistan
 The registration process is quite complex.
 Although the government provide financial and technical
    assistance to NGOs, there are problems and delays due to
    bureaucratic procedures.
   Funding problems due to withdrawal of many INGOs
   Restriction to work in specific areas
   Corruption by elites, politicians and bureaucrats
   The failure of many NGOs to meet their legal obligations
    and to be open about their sources and amount of funds
    has produced an environment of suspicion around NGOs.
Problems of NGOs in Pakistan
(Contd.)
 Traditional activities such as welfare, relief or service provision
    are welcomed but NGOs working at democratizing the state have
    not been encouraged.
   The state’s attitudes toward NGOs have been mixed and
    ambiguous. While it appreciates the services that the NGOs
    provide, it also perceives them as a competitor for donor
    funding, political allegiances and influences.
   Recent increase in tension due to activities of the new breed of
    NGOs that appear less interested in delivering services than in
    lobbying and advocacy.
   Many of these NGOs have huge funds and international support
    at their command, even though they lack track record.
   These are perceived as agents of outsiders with vested agendas
    detrimental to the State.
Prospects for NGOs in Pakistan
 The future of NGOs in Pakistan is bright due to the
  emergence of free media and judiciary.
 Media can be used for mass mobilization and advocacy
  campaigns.
 Free judiciary has also provided a supportive platform
  for strengthening of democracy where NGOs feel free
  to work as compared to the military rule.
 More role for NGOs is expected due to weak
  government performance in development sector.
How NGOs can be improved in
Pakistan?
 If the biggest problem of registration is solved many
  problems regarding availing the funding from
  international donors can be resolved.
 The streamlining of work of NGOs is necessary to
  complement their role as well as of the government.
 Proper regulatory framework is needed to avoid
  corruption and elite capture of NGOs.
 NGOs work can be improved through
  monitoring, accountability and capacity building.
NGOs in pakistan

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NGOs in pakistan

  • 2. Contents 1. NGO definition and introduction 2. History of NGOs in Pakistan 3. Laws governing the NGOs in Pakistan 4. Regulatory framework for NGOs in Pakistan 5. Types and activities of NGOs in Pakistan 6. Role of government in NGOs in Pakistan 7. Role of donor support in NGOs in Pakistan 8. Impact of NGOs on poverty in Pakistan 9. Problems of NGOs in Pakistan 10. Prospects for NGOs in Pakistan 11. How NGOs can be improved in Pakistan?
  • 3. NGO definition and introduction  The World Bank defines NGOs as "private organizations that pursue activities to relieve suffering, promote the interests of the poor, protect the environment, provide basic social services, or undertake community development" (Operational Directive 14.70)  Many NGOs are active in the traditional social sectors: emergency support, rehabilitation, poverty reduction, maternal and child health, family planning and education.  Most of the NGOs in Pakistan are unregistered, small scale and their funding source is philanthropy.
  • 4. History of NGOs in Pakistan  The origin of NGOs in Pakistan goes back to partition 1947, when British India was divided into two states India and Pakistan.  Many voluntary organizations (though not referred as NGOs at that time) were formed to provide humanitarian aid to refugees pouring into the newly established country.  During the first few years of Pakistan, many of the NGOs concentrated on rehabilitation and basic services such as health and education.  The next upsurge in the formation of NGOs took place in the late 1970s, when the Martial Law government promoted its philosophy of social work and welfare.  During 1980s, many new NGOs merged to avail of the funding set aside for development through local bodies ( district, municipal , town and local councils).  In the early 1990s, there was another rapid increase in NGOs, when new organizations were formed to take advantage of available funding under the People’s Works Programme.
  • 5. History of NGOs in Pakistan (Contd.)  Unlike past during 2000s more NGOs emerged in the field of advocacy and development.  It is difficult to estimate the number of NGOs working in Pakistan.  According to a study by UNDP the number is between 8,000 to 16,000, if unregistered NGOs and CBOs are added, the number could be between 25,000 to 35,000. (This number is 45000 by Aga Khan Foundation)  Funding coming to the government is many times higher than the amount of funds coming to NGOs.  Only few NGOs have comparable credentials, sufficient resources, coverage, linkages, delivery mechanisms and documentation systems.  According to Canadian International Development Agency (CIDA) there are less then 100 effective NGOs in Pakistan, but thousands of generally weak CBOs.
  • 6. Laws governing the NGOs in Pakistan  There are six laws under which NGOs operate in Pakistan 1. Societies Registration Act, 1860 (for professional, cultural and educational bodies) 2. The Trusts Act 1882, (it provides legal cover for private acts of charity) 3. Cooperative Societies Act, 1952 4. The Voluntary Social Welfare Agencies (Registration and Control) Ordinance, 1961 (to regulate and assist the development of NGOs undertaking welfare activities) 5. The Companies Ordinance, 1984 (it allows NGOs to set themselves as nonprofit companies) 6. Income Tax Ordinance, 2001 (this Act sets out the tax exemptions which NGOs are eligible for)  The foreign NGOs and those in receipt of government funding are required to register with the Economic Affairs Division and Central Board of Revenue respectively.
  • 7. Regulatory framework for NGOs in Pakistan  Registration requirements  The Ministry of Social Welfare and Special Education and the Provincial Social Welfare Departments are responsible for registering and monitoring organizations under the Voluntary Social Welfare Agencies (Registration and Control) Ordinance 1961.  The District Offices of the Industry Department are responsible for registering organizations under the Societies Registration Act 1860.  Not-for-profit companies are required to apply for a license from the Securities and Exchange Commission (SEC).  The income tax exemptions are granted by Ministry of Finance and these are not automatically granted. NGOs can apply for exemptions if they are registered with Central Board of Revenue.
  • 8. Regulatory framework for NGOs in Pakistan (Contd.)  Reporting requirements  Organizations registered under the Voluntary Social Welfare Agencies (Registration and Control) Ordinance 1961 are required to maintain accounts and submit an annual report and audit report to District Officers.  Registered Societies must submit a copy of the membership list annually.  Not-for-profit companies must submit annual returns, audited accounts and other documents for examination. Accounts are open to public scrutiny.  The Economic Affairs Division (EAD) asks International NGOs to explain their plans. The EAD role is strategic, to coordinate activities of government and NGOs so as to minimize duplication of effort and focus on unmet needs.  NGOs, which benefit from tax exemptions, are required to submit annual audited accounts, a list of donors and beneficiaries and other financial information to the Central Board of Revenue.
  • 9. Types and activities of NGOs in Pakistan NGOs in Pakistan can be divided into several broad categories: 1. Advocacy and lobbying NGOs i. Advocacy and lobbying NGOs are well-known, though their actual impact is low. ii. These include organizations focused on legal rights, literacy, women’s issues, children, minorities and human rights. 2. Policy advocacy NGOs i. Policy-based NGOs are relatively new in Pakistan. ii. Their purpose is to participate in and initiate dialogue about policy issues, be it with the government, other NGOs, or international organizations. iii. These are involved in international and regional networking. They most often do not get involved in project implementation or service delivery. 3. Emergency, rehabilitation and relief organizations i. The majority of NGOs in Pakistan fall into this category. ii. Except some very large organizations most of smaller grass-root organizations dominate this category. 4. Those involved in implementation of development projects and programmes 5. Service delivery organizations and CBOs
  • 10. Role of government in NGOs in Pakistan  The Pakistan government has been positive towards NGO development  In the first five year plan (1955-60) a permanent social welfare section was created which is now part of Planning Commission  Recently in seventh and eighth five year plans contain supportive policy for assistance for NGOs  The income tax ordinance exempts NGOs from income tax which has helped NGOs in terms of sustainability and resources.  Many government sponsored institutions provide financial grants to NGOs  National (and provincial) Social Welfare Councils, Zakat Councils, Social Action Programme, National (and Provincial) Education Foundations, National (and Provincial) Health Foundations, Trust for Voluntary Organizations, National Trust for Population Welfare etc.
  • 11. Role of donor support in NGOs in Pakistan  The term donor is used for bilateral or multilateral funding agencies in Pakistan.  It does not include Pakistani philanthropic organizations, or individual citizens.  Funding agencies typically provide funds for economic and public sector development, particularly for large- scale infrastructure development.  In the absence of internal resources, bilateral and multilateral funding agencies have received an important role in social development and support to NGOs.
  • 12. Role of donors support in NGOs in Pakistan (Contd.)  The multilateral agencies include various United Nations agencies focusing on education, health, water, nutrition, safe motherhood, reproductive health and gender.  Among the bilateral sources of aid Canada, Germany, Japan, United States and United Kingdom are noteworthy in their contributions to the social sector.  There are also several INGOs active in Pakistan, which include Oxfam, Save the Children, Asia Foundation, British Council, Action Aid and Christian Social Services.  Since NGOs do not participate in the project planning
  • 13. Impact of NGOs on poverty in Pakistan  ‘working for the poor’ whether this is in ‘relief’ mode or in pursuit of more durable ‘development’ solutions to chronic poverty [Mustafa (1992); Narayan et al. (2000)].  There has been mixed record of NGOs performance in Pakistan.  Relations between NGOs and the government have at time, marked by tension.  NGOs are reported to have not moved forward to address fundamental inequity issues that create the problems in the first place [Mumtaz (1997)].  NGOs in Pakistan mostly prefer to work on relief rather than focusing on problems of poverty and inequality.
  • 14. Problems of NGOs in Pakistan  The registration process is quite complex.  Although the government provide financial and technical assistance to NGOs, there are problems and delays due to bureaucratic procedures.  Funding problems due to withdrawal of many INGOs  Restriction to work in specific areas  Corruption by elites, politicians and bureaucrats  The failure of many NGOs to meet their legal obligations and to be open about their sources and amount of funds has produced an environment of suspicion around NGOs.
  • 15. Problems of NGOs in Pakistan (Contd.)  Traditional activities such as welfare, relief or service provision are welcomed but NGOs working at democratizing the state have not been encouraged.  The state’s attitudes toward NGOs have been mixed and ambiguous. While it appreciates the services that the NGOs provide, it also perceives them as a competitor for donor funding, political allegiances and influences.  Recent increase in tension due to activities of the new breed of NGOs that appear less interested in delivering services than in lobbying and advocacy.  Many of these NGOs have huge funds and international support at their command, even though they lack track record.  These are perceived as agents of outsiders with vested agendas detrimental to the State.
  • 16. Prospects for NGOs in Pakistan  The future of NGOs in Pakistan is bright due to the emergence of free media and judiciary.  Media can be used for mass mobilization and advocacy campaigns.  Free judiciary has also provided a supportive platform for strengthening of democracy where NGOs feel free to work as compared to the military rule.  More role for NGOs is expected due to weak government performance in development sector.
  • 17. How NGOs can be improved in Pakistan?  If the biggest problem of registration is solved many problems regarding availing the funding from international donors can be resolved.  The streamlining of work of NGOs is necessary to complement their role as well as of the government.  Proper regulatory framework is needed to avoid corruption and elite capture of NGOs.  NGOs work can be improved through monitoring, accountability and capacity building.

Editor's Notes

  1. NGOs have remained content to pursue a common purpose of ‘working for the poor’ and it matters little whether this is in ‘relief’ mode or in pursuit of more durable ‘development’ solutions to chronic poverty [Mustafa (1992); Narayan et al. (2000)]. There has been mixed record of NGOs performance in Pakistan. On the positive side, many localized examples of NGOs are reported to have been reaching groups of the poor with highly valued services. But there are also stories of problems with NGO coverage, implementation and ultimate effectiveness. Relations between NGOs and the government have at time, marked by tension. This is also the reason of low performance of NGOs in Pakistan. Moreover, it is reported that only very few NGOs in Pakistan are addressing underlying social inequalities by actively supporting either poor people or social movements. However, with some exceptions, NGOs are reported to have not moved forward to address fundamental inequity issues that create the problems in the first place [Mumtaz (1997)].NGOs in Pakistan mostly prefer to work on relief rather than focusing on problems of poverty and inequality.
  2. The state has been observed to be comfortable with the NGOs that restrict themselves to traditional activities such as welfare, relief or service provision, NGOs seeking to work at democratizing the state have not been encouraged.The state’s attitudes toward NGOs have been mixed and ambiguous. While it appreciates the services that the NGOs provide, it also perceives them as a competitor for donor funding, political allegiances and influences.Much of the alarm of Government about NGOs is recent and a direct result of the activities of the new breed of NGOs that appear less interested in delivering services than in lobbying and advocacy. Many of these NGOs have huge funds and international support at their command, even though they lack track record. These are perceived as agents of outsiders with vested agendas detrimental to the State.