NGOs in Pakistan: their history, law(s), activities, types, their impact on poverty, their problems and prospects. Definition, what are their problems, what has been done by the state, international lending/donor agencies, what could be done for their improvement.

1. Presented by
Farhad Zulfiqar
st113222

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.