Non-Governmental Organizations in Pakistan

Non-governmental Organizations in Pakistan

Iqtidar ul Hassan
University of Memphis
Theory and Practice of Nonprofit Organizations
PADM 7641
Dr. Leigh Nanny Hersey
April 14, 2016

Non-Governmental Organizations in Pakistan

Pakistan
Pakistan is a South Asian country. Total population is 200 million and area is
769096 sq. mile. The country has the same set of complex problems other
underdeveloped counties of the world have. These are related to poverty, illiteracy,
inequality, political crises etc. Pakistan has an additional set of problems related to
extremism and terrorism. But problems and crises are not the sole credentials of Pakistan,
she has large amount of natural resources, wonderful agricultural land, hard working and
intelligent population, cultural diversity and a potential for fast growth on the path of
development.
Pakistans nonprofit organizations are called Non-Governmental Organizations or
NGOs. Probably this term describes better the concept of public-private partnership in the
service of the people.
NGO, definition and introduction
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 Community Based
Organizations (CBOs) and their funding source is philanthropy.
History of NGOs in Pakistan

Non-Governmental Organizations 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 emerged 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
Peoples Works Program.
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. Because a
large number of NGOs are unregistered. Moreover, these organizations work in
conventional way and do not bother about using technology. Therefore, there is no
proper information system created for the Nongovernmental Organizations in
Pakistan. Pakistan Centre for Development Communication has but limited
information.

Non-Governmental Organizations in Pakistan

According to a study by UNDP the number of NGOs in Pakistan may be 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 according to Aga
Khan Foundation)
Funds coming to the government are many times higher than the amount of funds
received by NGOs.
Only few NGOs have comparable credentials, sufficient resources, adequate
coverage, linkages, delivery mechanisms and proper documentation system.
According to Canadian International Development Agency (CIDA) there are less
then 100 effective NGOs in Pakistan, but thousands are generally weak
Community Based Organizations (CBOs).
Laws governing 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)

Non-Governmental Organizations in Pakistan

6. Income Tax Ordinance, 2001 (this Act sets out the tax exemptions which
NGOs are eligible for)
Foreign NGOs or International NGOs (INGO) and those in receipt of grants from
government 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. NGOs can
apply for exemptions if they are registered with Central Board of Revenue.
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.

Non-Governmental Organizations in Pakistan

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 has the strategic role to coordinate activities of
government and NGOs so as to minimize duplication of effort so as to
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
Advocacy NGOs usually get the most attention. Being interested in mass
contact, they know how to use the media (particularly newspaper and magazines)
and they are well known, even if their actual impact is low. These include
organizations focused on legal rights, literacy, womens issues, children,
minorities, and human rights. Many of these are favored by funding agencies
because their founders and managers are usually vey articulate and espouse
causes of interest to such agencies. Some are involved in the training and
awareness programs, but not in the actual implementation of development
initiatives at the community level.

Non-Governmental Organizations in Pakistan

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 programs

Only a small proportion of NGOs in Pakistan can be described as
development-oriented and even fewer as CBOs. They are largely service delivery
organization, many of which are trying hard to transform themselves into either
CBOs or community support organizations. A handful has been successful, and
others are working hard to get there.
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.

Non-Governmental Organizations in Pakistan

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 Program, 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.
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.

Non-Governmental Organizations in Pakistan

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 stage, there are often
problems in implementation.

Impact of NGOs on poverty in Pakistan

Although NGOs are seen as major actors in the development sector, success
stories of Pakistani NGOs in the development sector are few. The majority remains
poorly developed and requires continuous support to exist. Having little exposure to he
more organized development sector, small-scale NGOs often look to the established ones
for help in starting. They seek the help of government departments and friends for
patronage.
Of the well-established NGOs in Pakistan, some go back 40-50 years and have
documented track records and professional staff. Above all, they have developed
reputations for hard work and efficiency. A good example is the Family Planning
Association Pakistan (FPAP). FPAP can provide information on any aspect of its work
quickly and comprehensively, is a member of several international and national networks.
Its impact has been considerable, particularly at the grassroots level, a very difficult area
where the Government has encountered enormous problems.

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10

Only a handful of other National NGOs involved in the implementation of

community based projects. There are several small NGOs that serve parts of provinces or
smaller areas but do so efficiently and effectively.
A few well-established NGOs work in such sectors as womens development,
policy debate, research, and publications, but their impact and outreach is rather limited,
either because they lack resources or because their target group is narrow.
NGOs in Pakistan are more numerous and most active in the traditional sectors:
emergency support, rehabilitation, health, and education. Other areas include income
generation, poverty reduction, vocational training, nutrition and food security, and
maternal and child health and family planning (now more commonly referred to as
reproductive health).
In the past NGOs avoided sectors considered the domain of the Government
because of the need for huge infrastructure development. These include water, sanitation,
irrigation and drainage, urban development, environmental issues, and roads. The Orangi
Pilot Project and the Agha Khan Rural Support Program (AKRSP) led the way in this
trend.
Capacity of NGOs
Studies of Pakistani NGOs have pointed out the need for capacity building. NGOs
request support for learning the skill of planning, management, documentation,
accounting and financial management, negotiating, and technical skills in development
sectors.

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11

NGO Apex Bodies

NGOs apex bodies are relatively new phenomenon. They are defined as
representative bodies of NGOs that modulate the conduct of NGOs and negotiate on
behalf of NGOs, have become visible during the last few years.
National Apex Body. The Pakistan NGO Forum (PNF) was announced in 1986. At
present it is more a network than a truly representative body of NGOs. NGOs that meet
certain conditions can become members. They must undertake an annual audit, hold
democratic elections, not act in fraudulent ways, and not engage in maligning other
NGOs. PNFs agenda includes:

Developing a common platform and voice for NGOs

Lobbying with government and other donors on issues and policies
Networking and sharing
Advocacy
Unity on the NGO bill

Problems of NGOs in Pakistan

The registration process is quite complex.
Although the government provides 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.

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12

Traditional activities such as welfare, relief or service provision are welcomed but
NGOs working at democratizing the state have not been encouraged.
The states 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.

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13

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.

References:
https://sites.google.com/site/thecivilsocietyforumofpakistan/new-projects-1
http://transparencywatchorganization.com/images/A%20Study%20of%20NGO's%20in
%20Pakistan.pdf
http://transparencywatchorganization.com