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No 2003:9:
Defining the Nonprofit Sector: Pakistan

Aisha Ghaus-Pasha and Muhammad Asif Iqbal
Additional contact information
Aisha Ghaus-Pasha: Social Policy and Development Center
Muhammad Asif Iqbal: Social Policy and Development Center

Abstract: Voluntary and philanthropic initiatives and activities in the region that is now Pakistan date back to the days before recorded history and are mentioned in regional folklore. In more recent times, these activities were manifested through the creation of trusts to supplement the state’s provision of social services in the fields of education, health, social welfare, and cultural activities. Following independence in 1947, the role of the nonprofit sector gained momentum. Initially, the state was unable to provide emergency relief to the large influx of refugees that resulted from Pakistan’s creation, so nonprofits stepped in to fill the gaps in assistance and service delivery. Later, nonprofits responded to the gradual decline in funding for human capital development. More recently, as a consequence of the erosion of good governance practices and a lack of confidence in the government’s capabilities and capacity, international donor organizations, as well as multilateral, bilateral, and private philanthropists, have resorted to funding nongovernmental organizations (NGOs) directly (SPDC 1998). The government itself is committed to delivering a substantial part of the Social Action Program (SAP) and the programs under its poverty reduction strategy through NGOs. As a consequence, there has been rapid growth of nonprofit organizations involved in social service delivery. In addition to individual voluntary activities, there have been significant developments in the organized efforts of Pakistan’s “nonprofit sector.” Most NGOs and community-based organizations (CBOs) are supported by community contributions, local donors, and government funds. Over the years, nonprofit organizations (NPOs) have become increasingly involved in community-based initiatives for social and economic development targeted to improve the quality of life or to help alleviate poverty. Over time, political and religious influences have played an important role in shaping the nonprofit sector in Pakistan. By and large, the government’s attitude towards the nonprofit sector has lacked consistency. While the government appears supportive at the policy level, it has been obstructionist at the operational level. Additionally, though it has been generally supportive of the welfare and service-providing role, it is openly hostile to nonprofit organizations’ social and political advocacy. impulses as well. The system of Zakat, and other mechanisms outlined in Islamic teachings to help the poor by devoting resources to them, provides a strong motivation for philanthropic and voluntary actions. A recent study on philanthropic and voluntary activities in Pakistan estimates that the people of Pakistan contributed 41 billion Rupees (about 1.5 percent of GDP) and volunteered 1.6 billion hours of time to philanthropic activities in 1998 (AKDN 2000). This paper is organized into five parts. Part A describes the historical background, essentially categorizing the evolution of the nonprofit sector over five eras: (1) the colonial period, and the post-independence period over four sub-periods; (2) the formative years (1950s); (3) the first military rule years (1960s); (4) the democratic years (1970s); and (5) the second military rule years and the post-military years (1980s and 1990s). Part B discusses major types of organizations along with the legal treatment. Part C defines the nonprofit sector using the structural-operational framework. In so doing, we specifically address each of the five components (organized, private, self-governing, non-profit-distributing, and voluntary) developed by the John Hopkins Project. Part D analyses the nonprofit sector and the Pakistani society, focusing on the political economy of the relationship and thus its influence in shaping and forming the sector. Finally, the last part summarizes the major conclusions, highlighting the major issues currently facing the nonprofit sector.

Keywords: Nonprofit sector; Pakistan

Language: French

36 pages, 2003

Note: Available online at: http://www.jhu.edu/~ccss/publications/pdf/pakistan.pdf

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RePEc:hhh:senior:2003_009 This page was generated 2009-11-02 09:56:54