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Creating an Enabling Legal Framework for Nonprofit Organisations in Pakistan

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Creating an Enabling Legal Framework for Nonprofit Organisations in Pakistan Enabling Environment Initiative Creating an Enabling Legal Framework for Nonprofit Organisations in Pakistan Pakistan Centre for Philanthropy November 2002 PCP Board of Directors Dr. Shamsh Kassim-Lakha, H.I., S.I. Chairman, Board of Directors President, The Aga Khan University Syed Babar Ali Pro-Chancellor, Lahore University of Management Sciences Advisor, Packages Limited Mr. Mueen Afzal Secretary General, Finance & Economic Affairs, GoP Rear Admiral (R) Tanveer Ahmed Chief Executive Officer, The Citizens Foundation Mr. Kamal A. Chinoy Chairman, Aga Khan Foundation (Pakistan) Mr. Towfiq H. Chinoy Chairman, New Jubilee Insurance Mr. Arif Habib President, Arif Habib Securities Limited Dr. Attiya Inayatullah Former Federal Minister for Women Development, Special Education, Social Welfare and Population Welfare Mr. Mahomed J. Jaffer Senior Partner, M/s Orr, Dignam & Co. Former Chairman, Aga Khan Foundation (Pakistan) Mrs. Munawar Humayun Khan Chairperson, Sarhad Rural Support Programme Mr. Shoaib Sultan Khan Chairman, National Rural Support Programme Mr. Zaffar A. Khan President, Engro Chemical Pakistan Limited Mr. Saeed Ahmed Qureshi President, Pakistan Economic Forum Former Deputy Chairman, Planning Commission, GoP Mr. Farooq Rahmatullah Chairman, Shell Companies in Pakistan Mian Ahsan M. Saleem Chief Executive, Crescent Steel & Allied Products Dr. M. Suleman Shaikh Chief Executive, Sindh Graduates Association Mr. Arshad Zuberi Chief Executive and Editor, Daily Business Recorder Preface It is an honour and privilege for me to present challenging exercise in November 2001, the first and seminal research publication by constituted a team of eminent national and the Pakistan Centre for Philanthropy on the international experts and organised more than reform initiative to create an enabling 65 consultations and meetings across the environment for the growth and development co un tr y, en ga gi ng mo re th an 22 00 of nonprofit organisations operating for participants. These forums were held at the public benefit. This report narrates the federal, provincial and district levels and journey from the impulse to strengthen civil included community based organisations, society and nurture its role in social media, district councillors, field officials, development to the crafting of a legal, fiscal po li ti ca l le ad er s, no n- go ve rn me nt al and institutional framework that enjoys the organisations, local associations, ministers, confidence of the stakeholders, meets the governors, senior decision-makers, national requirements of governance and protects the and international funding and support service autonomy and freedom of association. institutions. The Enabling Environment Initiative (EEI) This multi-layered and complex canvas of has been the joint labour and passionate prevailing regulatory systems, implementing commitment of many civil society machinery, legal diktat, actual practices, organisations, government officials, political compulsions of the State, centrifugal forces of leaders, development professionals, academia an array of anti and non-governmental and business community to contribute to the interests, the rising aspirations of the people discourse on revisioning the role of the State and the undeniable and expanding role of civil and its relations with civil society. The EEI society formed the mosaic of the EEI has centred this discourse on the template of a consultative process. Diverse perspectives, modern, Muslim State visioning an active and rigorous analysis and examination, critical responsible role for its citizens through review, reflective deliberations and intense associational activities. debate characterised the exercise undertaken by PCP to develop a consensus-based legal In September 2001, the Government of framework for the growth and development of Pakistan commissioned the Pakistan Centre civil society organisations that operate in the for Philanthropy to undertake a study of all public interest. laws that pertain to civil society organisations, in particular, those that operate as nonprofit Through the entire process that finally organisations and work for public benefit. culminated in a set of recommendations The legal review and analysis was to be presented to the government in August 2002, paralleled with a country-wide consultation the Board of Pakistan Centre for Philanthropy with a broad range of stakeholders to ascertain rem ain ed act ive ly eng age d, pro vid ing their views on the prevailing regulatory guidance, monitoring progress, participating system and seek suggestions for a new in the consultation forums, and giving serious framework that would enable civil society consideration to all the views of the organisations to function without hindrance, stakeholders. The Board ensured while ensuring that governance, transparency transparency and openness in the approach, and accountability are not compromised. intellectual integrity and rigour in the research and analysis and independence and The Centre embarked on this enormously objectivity in the formulation of i recommendations for an enabling regime. citizen action can be actualised for public benefit. The corollary to this report Learning lessons from the previous “Stakeholder Perspectives” captures the experience of government-dictated legal voices and opinions of citizens that informed reform, which resulted in adversarial the EEI. I would urge all interested readers to relations, the present government broke from read both volumes to gain a fuller the traditional practice and enabled an understanding of the nature of the process and independent process to take place. The then the content of the debate. Minister for Social Welfare, Dr. Attiya Inayatullah is to be credited for this bold and On behalf of the Board of Directors of the forthright approach. While she facilitated the Pakistan Centre for Philanthropy, I would like process within government, she reposed to acknowledge the generous support of the confidence in the ethos of civil society European Union, which made it possible for organisations and in the ability of the PCP to the Centre to undertake this vast exercise and honour the intent and maintain the integrity of the invaluable assistance provided by the Aga the process. Khan Foundation and the Aga Khan Development Network to the Enabling It is my hope that this report will be a Environment Initiative. substantive contribution to the literature on social development in Pakistan; that it will be The experience of the Enabling Environment of value to the international community as it Initiative has been for me personally seeks a better understanding of Pakistan and enriching and exciting, and in my capacity as its societal forces and that it will inform all Chairman of the Board, I feel that I can those who are interested in creating a better convey the same sense of deep involvement environment so that the rich potential of for each Board member. Dr. Shamsh Kassim-Lakha, H.I., S.I. Chairman, Board of Directors, Pak..istan Centre for Philanthropy President, Aga Khan University, Karachi ii Acknowledgements This report is the product of deep and is also due to the Minister and the Secretary extensive engagement and commitment of for honouring the independence of the many individuals and vital institutions that pr oc es s, re sp ec ti ng th e di ve rs it y of came together to contribute in significant and stakeholder perspectives, reflecting upon diverse ways to the creation of an enabling criticism and dedicating laborious hours and environment and framework for citizen days to read iterations of the draft law and its action. As the convener of the Enabling supporting documents. Environment Initiative (EEI) team, it is my privilege to acknowledge the immense Mr. Zubair Bhatti, full-time Enabling intellectual input, the immeasurable energy, Environment Initiative Coordinator, pledged time, effort and unstinting support of all the all his time and energies over a ten month team members. period to plan, coordinate, conduct, research and write on the Initiative. Demonstrating The wide and rich experience of seventeen inexhaustible commitment, Zubair has been eminent citizens that comprise the Board of the anchor of a demanding, sensitive and Directors of the Pakistan Centre for challenging assignment. He has written, Philanthropy guided the work of the EEI team refined and edited numerous chapters of this and contributed in large measure to ensuring report, demonstrating and demanding that the process remained transparent and the exacting standards. Zubair's research skills, content relevant and substantive. Led by the probing mind and writing abilities have been Chairman, Dr. Shamsh Kassim-Lakha, the invaluable assets in producing this report. He Board devoted numerous meetings to also has authored the accompanying volume reviewing the progress, debating the issues, on the consultation process, narrating the pro vid ing ins igh t, obj ect ivi ty and an process and sanitizing the perspectives of a independent perspective. Board members broad spectrum of stakeholders. attended consultations across the country; singly and jointly they brought intellectual From its headquarters in Geneva, AKF rigour to the complex debate, sustained a high generously loaned us its NGO Enhancement level of engagement over the entire ten Programme Director, Mr. David Bonbright months period and imbued the whole reform who served as editor-in-chief for this report. effort with credibility and integrity. The team David was deeply involved
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