Economics Affairs Division (EAD) has decided to make the control stringent over available funds with NGOs which may lead to make a dent in relations between international donor agencies and government.
As per media reports, government wants to keep an eye on sources of funding to NGOs and their expenses in future. An NGO has to file audit reports of the last 3 years, copies of tax returns of five years, financial statement of 3 years, proof on payment of withholding tax, profile of proposed projects and sources of funding or donations with EAD when it signs an MOU with the latter.
A former federal secretary told the media that the basic issue is off budget grants which are provided by other governments to Pakistan. The government should have been in full picture in respect of the grants which come into Pakistan. Government has powers to cancel the NOC of any NGO if it trespasses its mandate.
To a question about recent action against Save The Children, Nargis Khan policy maker of PHF told the media no official confirmation has been received in the forum about government decisions against any NGO. PHG recognises government mandate on formation of policies and their implementation for regulating NGOs and we are eager to forge constructive and fair partnership with bolstering cooperation.