Covid-19: NGOs exempted from signing of MoU with EAD

The federal government has exempted local NGOs from signing of Memorandum of Understanding (MoU) with the Economic Affairs Division (EAD) to utilise foreign economic assistance in efforts to fight coronavirus (COVID-19).
The EAD on Thursday issued an office memorandum stating that in pursuance of powers conferred under clause-11 of Policy for Regulation of Organizations Receiving Foreign Contributions 2013, the Government of Pakistan has exempted local NGOs from signing of MoU with the EAD to utilise foreign economic assistance, for a period not exceeding six months with immediate effect.
This exemption will be applicable only to those NGOs who have applied to the EAD for permission/signing of the MoU. According to the EAD, there are 92 NGOs whose documents are completed and have been circulated to the stakeholders. Further, the same number of NGOs has signed MoUs with EAD so far.
According to the MoU draft, which was earlier required for the NGOs to be signed with EAD, and is now waived off; the government may allow NGO to receive foreign contributions including funds, materials and services, emanating from declared sources, through legal channels, subject to reporting requirements.
Further, the government according to the MoU draft may allow NGO to open, maintain and operate accounts for the execution of its work, provided that for opening and operating foreign currency accounts, the (name of NGO) will seek permission of the State Bank of Pakistan, under the applicable law and rules.
Further, the government may allow NGO to maintain its office at and to open other offices, if required, with prior written approval of the government, subject to the concurrence of the provincial government/local government and compliance with applicable law/rules.
The (name of NGO) may avail 100 percent tax credit subject to the provisions of the Section lOOC and approval of the Commissioner Inland Revenue concerned, under Section 2(36) of the Income Tax Ordinance 2001. The organisation will receive foreign contribution through formal banking channel only.
However, the NGO will comply with the anti-money laundering and other applicable laws as applicable in Pakistan. The organization will not be allowed to retain foreign contributions in foreign exchange or in their foreign currency accounts but they will have to convert the same into Pak rupees for utilization in line with the purpose(s) specified in the MoU.
However, if there is a justifiable need to retain a part of the donation in foreign currency, the NGO will have to obtain the SBP's prior approval. For this purpose, the NGOs may approach Exchange Policy Department of the SBP along with the recommendations of the EAD through concerned Authorized Sealer (Bank).
Use funds, materials and services received by it as foreign contribution or foreign economic assistance from declared sources, through legal channels, for its specified work, and provide to the government every six months complete information regarding flow of such funds, materials and services and when required by the government.
The organisation will not engage in any activity defined as an offence in Chapters 14 and 15 of the Pakistan Penal Code (Act XL V of 1860) or any other law prevailing in the country. Further, it should not engage in money laundering, terrorist financing, weapon smuggling, anti-state activities and maintaining links with proscribed organisations.