Allowing NGOs to invest in different sectors under FAPF: government to seek Parliament's approval

Government is working on a plan to seek approval of Parliament before allowing Non-Governmental Organisations (NGOs) to invest in different sectors under new Foreign Assistance Policy Framework (FAPF). According to FAPF draft, government will strengthen civil society. "But it must be through agreements with government of Pakistan and in sectors approved by Pakistani Parliament," sources maintained.
To address the donors' demand, the government is working on a draft foreign assistance policy framework to make the use of grants and aid more effective. Sources in EAD said that this framework seeks to locate the role and responsibilities of donors and the government, based on the Paris Declaration. It also articulates avenues through which donors can support Pakistan. Once agreed, the framework will be the standard for approving donor programmes in Pakistan.
The donors pointed out to Economic Affairs Division on the five pillars of the Paris Declaration on aid effectiveness, donor performance in Pakistan has been desperately weak. Exceptional programmes and projects such as the efforts of the two basket funds for election support in 2007 and 2008 are few and far between. Beyond such small examples of harmonised and aligned aid, there is a vast diversity of projects and programmes that operate in isolation of the government priorities.
While the government is aware of the areas in aid effectiveness where it needs to achieve results faster, donors need similar self-awareness. The experience of foreign aid has shown that its effectiveness depends on actions on both the donor and recipient sides. The Paris Declaration of 2005 spelt out the responsibilities of the receiving government as well as that of the donor. These responsibilities were detailed under five heading like ownership, alignment, harmonisation, managing for results, and mutual accountability.
An official said that the challenges Pakistan now face, including terrorism and insecurity, a massive post-floods reconstruction effort, and poor social indicators cannot be met through a business as usual approach. Dramatic improvements in aid effectiveness are urgent.
An economist said that the government needs to articulate its priorities and strategies better than it has in the past. Past attempts to make clear and definitive declarations about Pakistan's development priorities such as the Poverty Reduction Strategy Papers have been burdened by a lack of overarching political will. In part, this problem is solved by the presence of a fairly elected and democratically legitimate government in Islamabad and the four provinces. However, more needs to be done, including parliamentary ownership of such strategies.