ISLAMABAD, March 3: An opposition-sponsored bill seeking regulation and strict oversight of foreign funding being received by non-governmental organisations (NGOs) in the country is on top of the legislative agenda of the Senate session beginning on Monday evening after a three-day recess.

The private member bill titled “The Regulation of Foreign Contribution Act 2013”, to be introduced by Leader of Opposition Ishaq Dar of the Pakistan Muslim League-N, authorises the federal government to inspect accounts of NGOs or individuals receiving foreign donations and confiscate and cancel their registration if found violating the law.

The draft of the bill, a copy of which is available with Dawn, says: “It is expedient to consolidate the law to regulate the acceptance and utilisation of foreign contribution by NGOs, whether registered or not in Pakistan, for any activities detrimental to the national interest.”

Under Clause 3 of the bill, all NGOs and their office-holders “shall have to declare any contribution they receive from foreign sources”. The proposed law makes it binding on the NGOs or individuals to “utilise such contribution for the purposes for which the contribution has been intended”.

The NGOs will also be required to obtain a prior permission in the form of “a certificate of registration from the federal government” for accepting foreign contributions and the government will have the powers to “prohibit” an NGO from utilising or transferring the funds, if received from any foreign country in violation of the law.

According to the proposed law, the use of foreign funds shall not affect “the sovereignty and integrity of Pakistan, the security, strategic, scientific or economic interest of the state, the public interest, freedom of fairness of election to any legislature, friendly relation with any foreign state, harmony between religious, racial, social, linguistic, regional groups, castes or communities”.

Moreover, it says the acceptance of foreign contribution “shall not lead to incitement of an offence and shall not endanger the life or physical safety of any person”. Keeping a strict check on the utilisation of foreign donations, the bill says that NGOs and individuals “shall not defray as far as possible such sum, not exceeding 20 per cent of such contribution, received in a financial year, to meet administrative expenses”. However, it says the “administrative expenses of such contribution exceeding 20 per cent may be defrayed with prior approval of the federal government”.

Under the proposed law, the government will also have the powers to suspend the certificate of registration of an NGO for a maximum period of 180 days and during the suspension period an NGO will not be able to receive foreign contribution and also cannot utilise foreign contribution in its custody.

The NGOs will be bound to receive foreign funds through scheduled banks and in the accounts which they will have to mention in their applications seeking permission to receive the funds. “Every NGO/person receiving foreign contribution shall submit a copy of statement indicating therein the particulars of foreign contribution received duly certified by officer of the bank or authorised person in foreign exchange and furnish the same to the federal government along with the intimation within 30 days of receipt of such contribution,” says Clause 12(2) of the bill.

Under Clause 15, the government will have the powers to “inspect” the accounts or record on any ground of suspicion and the “inspecting officer”, who can be any gazetted officer, “shall have the right to enter in or upon any premises”, but only during the day time for the purpose.

The bill gives powers to a sessions judge to “seize” the foreign funds in case of violation of the law, proposing a maximum of three-year imprisonment or fine or both for the violators and for making false statements or declaration. However, the convicted persons will have the right to appeal in high courts. Clause 2 defines “foreign contribution” as “the donation, delivery or transfer made by any foreign source of any currency, whether Pakistani or foreign”. Moreover, it says: “The interest accrued on the foreign contribution deposited in any bank or any other income derived from the foreign contribution or interest thereon shall also be deemed to be foreign contribution within the meaning of this clause.”

It defines “foreign source” as “the government of any foreign country or territory and any agency of such government; any international agency, not being the United Nations or any of its specialised agencies, the World Bank, International Monetary Fund or such other agency as the federal government may, by notification, specify in this behalf”.

Any multinational corporation, trust, club, foundation, trade union, any foreign citizen, society or other association of individuals formed or registered in a foreign country will also be considered “foreign source”.

When contacted, Ishaq Dar said a similar law had been enforced in India and the purpose of the bill was to monitor the foreign funding and its utilisation because there were allegations that foreign money was also being used for acts of sabotage in the country.

In reply to a question, Mr Dar said genuine NGOs functioning in the country for the welfare of people need not to be worried because the proposed law would help improve their working.

Muddassir Rizvi, convener of the Free and Fair Election Network, said civil society organisations had no objection to the proposed law. “We welcome such a law.”

However, he said the government would have to make sure that the law was not “selectively used” to target some institutions or individuals and that it applied to across the board.