Exploring the link between non-proft organization and funding system in Pakistan: challenges and resolutions.

Abstract

Fiscal accountability of NPO’s are major concern of government of Pakistan as well as for general public. NPO’s are appearing being third sector of Pakistan and possess assets which specifically belong to poor sector of Pakistan so, their accountability is most important factor. Although there are several legislation exists in Pakistan for registration and regulation of NPO’s but these existing regimes are outdated and lacks with sufficient mechanism to control fiscal transaction of NPO’s. This study explores the existing regimes of Pakistan which are applicable on NPO’s and describe the cause of insufficiency of existing laws. In this context this study explored the legal framework of developed and neighboring states by adopting exploratory qualitative research. Moreover, this study depicts that there is need of new comprehensive and universal law to tackle with all type of NPO’s in Pakistan. This research investigated that the tendency of donor to dominate over NPO’s by dealing directly with NPO’s freely, without interference of government of Pakistan and transfer of funds directly is a major reason of corruption among the NPO’s. Therefore, the study suggests to develop new legal framework which specifically enabled the government as well as general public of Pakistan to get access of information regarding funds received, flow of donations and budget plans of NPO’s operational in Pakistan.