LAHORE: The Lahore High Court on Monday set aside a single-bench ruling that had struck down the federal government’s policy regulating foreign funding of non-governmental organisations (NGOs), holding that such policymaking squarely falls within the executive domain and is protected from undue judicial interference.

A two-judge LHC bench, comprising Justice Chaudhry Muhammad Iqbal and Justice Syed Ahsan Raza Kazmi, announced the judgement, allowing multiple intra-court appeals (ICAs) filed by the federation and restoring the “Policy for Local NGOs/NPOs Receiving Foreign Contributions, 2022.”

The appeals were filed in the wake of a September 6, 2024 judgement by a single judge, who had declared the 2022 policy unlawful and without legal effect in petitions filed by the Human Rights Com­mission of Pakistan (HRCP) and others.

The petitioners, represented by Advocate Saqib Jillani, had argued that the 2022 policy—like an earlier 2013 framework struck down by courts—lacked statutory backing and violated constitutional protections, including the right to freedom of association and business.

LHC sets aside single-bench ruling, warns against judicial overreach in policy matters

The federal government, represented by Additional Attorney General Mirza Nasar Ahmad, challenged the ruling, maintaining that the policy had been duly approved by the federal cabinet and issued in accordance with the Rules of Business, 1973.

The division bench framed two central questions: whether the federal government had the authority to formulate policies regulating NGOs receiving foreign contributions, and whether constitutional courts could interfere in such policy decisions under writ jurisdiction.

The bench answered both questions in favour of the government.

Judicial restraint in executive matters

The bench held that under Articles 90 and 99 of the Constitution, the federal government is fully empowered to conduct its business and formulate policies.

It maintained that the Rules of Business, 1973, framed under constitutional authority, provide a binding procedural framework for decision-making.

The bench noted that the 2022 policy was approved by the federal cabinet and issued by the Ministry of Economic Affairs, which is competent to regulate foreign assistance.

It described the policy as a comprehensive regulatory instrument governing the receipt, utilisation, monitoring, and accountability of foreign contributions by NGOs.

On the question of judicial review, the bench reiterated settled law that courts should exercise restraint in policy matters unless such policies violate fundamental rights, the Constitution, statutory law, or are made in bad faith.

“In the absence of such violations, policymaking remains the exclusive domain of the executive,” the bench observed.

The bench further ruled that the single judge had incorrectly invoked Article 18 (freedom of trade and business), holding that the matter instead fell within Article 99, which governs the conduct of federal government business.

Published in Dawn, April 14th, 2026