Govt rejects 46 foreign funded NGO projects, six appeals pending

The government has rejected 46 project applications from local non governmental organisations seeking approval

Islamabad: The government has rejected 46 project applications from local non governmental organisations seeking approval to receive foreign contributions, while six applicants have challenged the decisions and their appeals remain under consideration, the Senate has been informed.

However, the Ministry of Economic Affairs said no organisation’s existing agreement had been suspended or cancelled specifically for failing to follow the foreign funding policy. The ministry’s reply shows that applications were rejected or declined during scrutiny, rather than organisations being found guilty of breaking the rules.

The details were provided in response to a question by Senator Samina Mumtaz Zehri about the rules for local organisations receiving foreign contributions for legal aid, human rights programmes and other public interest work. The question also sought the names of organisations receiving such funding, the number of approved projects and details of violations and action taken.

The dispute over the policy has already affected approvals. The government introduced the Policy for Local NGOs and NPOs Receiving Foreign Contributions in 2022. The Lahore High Court declared the policy unconstitutional in September 2024, affecting the processing of applications and leaving a number of applications pending. The ministry said the policy was restored during proceedings before a two member Lahore High Court bench in April 2026.

The ministry said the 2022 policy now remains the framework used by the Economic Affairs Division to regulate local organisations receiving foreign contributions.

The figures submitted to the Senate show that 37 new memoranda of understanding, or MoUs, were signed during the financial year 2023 to 24, with a total amount of USD 4.126 million listed against them. Another 10 agreements were extended or renewed, with USD 1.954 million recorded.

No new agreements or renewals were recorded under the policy during 2024 to 25 because of the court order suspending its operation.

During 2025 to 26, five new MoUs were signed with USD 1.795 million listed, while three agreements were renewed with USD 972,934 recorded. In total, the figures show 42 new agreements with around USD 5.92 million listed and 13 renewals with about USD 2.93 million.

These amounts are recorded against the agreements in the government’s reply. The figures do not, by themselves, establish how much money was ultimately spent or delivered to each organisation.

After the policy was restored, the Economic Affairs Division rejected or declined 46 projects for various reasons, including failure to meet the policy’s guidelines or requirements. Only six applicants submitted appeals, which were still under consideration when the reply was prepared.

The ministry said it could reject an application before signing an agreement if concerns or objections were received from relevant government departments or other stakeholders during scrutiny. It also has the power to suspend or terminate an agreement in specified circumstances under the policy.

To qualify, an organisation must be registered or incorporated in Pakistan as a non governmental or nonprofit organisation. It must provide a commitment from a foreign donor, have at least one year of relevant experience, submit an annual work plan, hold active taxpayer status with the Federal Board of Revenue and pay the required processing fee.

Applications must be submitted through the online NGO Portal at least 60 days before the planned start of a foreign funded project. An authorised officer of the Economic Affairs Division reviews the application, which is also sent to relevant stakeholders for comments. The ministry then decides whether to approve or reject it.

The policy provides for agreements linked to specific projects, with an approved MoU generally valid for up to three years. Renewal applications must be submitted at least 60 days before expiry, and the renewal period cannot exceed two years.

Organisations receiving foreign contributions must submit annual project reports, audited accounts and project completion reports through the online portal. They must use only the bank accounts declared to the ministry for the approved project and provide details of payments to third party contractors and service providers.

If a stakeholder reports a problem, the ministry can issue a notice asking the organisation to explain its position. Where the reply is unsatisfactory, it may order a special audit or take steps to suspend or terminate the agreement.

The rules also prohibit the use of foreign contributions for activities involving money laundering, terrorist financing, corruption, forged documents, activities threatening national security or other activities barred by the policy. Organisations can also face action for providing false information or failing to report relevant changes in their bank accounts.

The policy does not cover individual contributions from overseas Pakistanis, statutory bodies or organisations established by federal or provincial law, universities and colleges established by the government, or organisations that do not seek foreign contributions directly or indirectly.

The ministry’s annex lists organisations working on legal aid, women’s rights, child protection, labour rights, religious freedom, human trafficking, reproductive health, digital rights and public accountability.

The organisations named in the list of new agreements include Blue Veins, Multan Diocesan Trust Association, Imkaan Welfare Organization, Youth Association for Development, Center for Social Education and Development, Relief Human Rights Organization Swabi, Home Net Pakistan, Ujala Sahar Organization, Center for Law and Justice, Pak Council of World Religions Faith Friends, HBWWC Association, Bridge Consultants Foundation, Legal Rights Forum, Basic Education and Employable Skill Training Pakistan, Sanjog, SHAOOR Foundation for Education, Centre for Human Rights Education, South Asia Partnership Pakistan and Bhitai Social Watch and Advocacy.

The list also includes Organization for Legal Aid, Peace Foundation Pakistan, Rahnuma Family Planning Association of Pakistan, Digital Rights Foundation, Sindh Community Foundation, Community Support Concern, Dastak Women Rights and Awareness Foundation, Sustainable Development Policy Institute, Legal Aid Society, Search for Justice, Media Matters for Democracy Trust, Foundation for Ageing and Inclusive Development, Sanjh Preet Organization and Transparency International Pakistan. Some organisations appear more than once because the list includes separate projects or additional activities.

The projects cover women’s access to justice, legal help for people without citizenship documents, youth health education, protection of workers’ rights, children’s rights, the prevention of child labour, support for victims of human trafficking, minority rights, reproductive health, digital and media freedoms, and stronger public accountability.

The list of renewed agreements also names the Society for Empowering Human Resources, Imkaan Welfare Organization, Christians’ True Spirit, SSDO, Water Environment and Sanitation Society, Peace Mission International, Women in Struggle for Empowerment Society, Center for Law and Justice, DevCon, Sanjog and Media Matters for Democracy. Several organisations had more than one project listed.