MEMORANDUM OF UNDERSTANDING BETWEEN THE GOVERNMENT OF ISLAMIC REPUBLIC OF PAKISTAN AND [NAME OF ORGANIZATION] This MOU is made between the Government of Pakistan through the Interior Division, (hereinafter referred to as “the Government”) and ………………………(hereinafter referred to as “the Organization”), a not-for-profit organization registered in (country name) at (address)______________________ and Local Office at (address)___________________________________________ Whereas the Organization desires to undertake work for the socio-economic development in Pakistan, particularly in the area(s) of 1)________________________ 2) ________________________, and located in (districts)___________, and for this purpose has submitted an Online application for registration accompanied by requisite documentary information; Now, the Government is pleased to allow the organization to carry out its work on the following conditions:- 1. This MOU shall be governed by laws and policies of the Government of Pakistan. 2. The Government may: 2.1. Allow (Organization) to receive foreign contributions including funds, materials and services, emanating from declared sources, through legal channels, subject to reporting requirements. 2.2. Allow (Organization) to open, maintain and operate local accounts for the execution of its work. Provided that for opening and operating foreign currency accounts, the (Organization) shall seek permission of the State Bank of Pakistan, under the applicable law and rules; 2.3. Allow (Organization) to maintain its head 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. 3. Import / Tax Regulations 3.1. The Organization may avail 100% tax credit subject to the provisions of the Section 100C and approval of the Commissioner Inland Revenue concerned, under Section 2(36) of the Income Tax Ordinance 2001. 3.2. The Government may allow duty-free import of goods for consumption by the
Organization subject to the provisions of clause (56) of Part IV of Second Schedule to the Income Tax Ordinance 2001, with prior written approval of Federal Board of Revenue (concerned Commissioner Inland Revenue) and any other concerned agency. 4. Obligations of the Organization The Organization shall:- 4.1. 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. 4.2. Obtain prior concurrence of the Government for any additional funding or different source of funding other than that specified by the Organization. 4.3. Appoint and employ a representative and other senior management personnel as appropriate, who will manage the work and supervise the staff on behalf of the Organization and liaise with the Government, and the Provincial / local Governments. 4.4. Employ foreign nationals against not more than 10% of the total staff positions, and give preference to Pakistan nationals for key positions. 4.5. Ensure that every expatriate has obtained an INGO visa prior to his / her entry into Pakistan as required under existing rules / regulations of Pakistan. The Organization shall not employ expatriates who are in the country on any other visa. 4.6. Obtain prior written permission from the Government for visits to prohibited areas by expatriate personnel. 4.7. Ensure that all expatriate staff are informed that while they are in Pakistan, they shall be subject to (a) the laws and regulations of Pakistan, and (b) respect religious injunctions and cultural norms in Pakistan. 4.8. Provide updated lists of its foreign and locally hired staff to the Government on a six monthly basis. 4.9. Make payment above Rs.20,000/- (Twenty Thousand) in Pakistan through banking channels and to provide complete details in this respect to the Government every six months. 4.10. Ensure that all staff (foreign and local) working in Pakistan shall pay applicable taxes. 4.11. Ensure withholding of tax, wherever applicable, and deposit of the same in Government treasury. 4.12. Ensure that the administrative expenses do not exceed 30% of the project cost. 4.13. Ensure filing of Income Tax Return and withholding statements. 4.14. Submit to the Government every six months, and when required, written reports covering its activities and progress on the projects, funds received from abroad and their expenditure in Pakistan. 4.15. Submit, on yearly basis, independent or third party evaluation including quantitative and qualitative assessment and impact of its work to the Government, Provincial Government and local government.
4.16. Have its performance audit done from a panel of Auditors approved by the INGO Committee. 4.17. Ensure that its entire work in Pakistan is undertaken in accordance with the laws and policies of Government of Pakistan. 4.18. Inform respective Provincial Governments and concerned local governments / district authorities regarding its programs / projects in their area and obtain their approval/permission/NOC for carrying out permissible activities. The Organization shall not:- 4.19. Establish headquarter and field offices, open bank accounts, and hire staff prior to approval of registration in Pakistan. 4.20. Raise funds and/or receive donations locally, unless specifically authorized. 4.21. Seek change in visa category. 4.22. Engage in money laundering, terrorist financing, weapon smuggling, anti-state activities and maintaining links with proscribed organizations. 4.23. Take part or assist in any kind of political activity; conduct research or survey unrelated to their TORs unless sanctioned by the Government; carry out missionary work in Pakistan or any other unauthorized or prohibited activities. 4.24. Provide, directly or indirectly, without approval of the Government, any assistance (monetary and / or material) to any local / international non-governmental organization. 4.25. Transfer or rent / lease out its possessions or allow their use for purposes other than those specified and agreed upon between the Parties in this MOU. 4.26. Indulge in distribution of any material or pamphlet causing or likely to cause religious resentment in the area of its activities. 5. Termination of MOU 5.1. The Government reserves the right to immediately terminate this MOU and cancel registration of the Organization in case of non-compliance with any provision of this MOU. 5.2. The Government may also terminate this MOU on the following grounds:- 5.2.1. The Organization has been found to be working in a geographical area other than the areas authorized. 5.2.2. The non-cooperation or breach of security or participation in any activity inconsistent with Pakistan’s national interests, sovereignty, territorial integrity, culture, norms, and religious sentiments of the people or contrary to Pakistan’s
policies. 5.2.3. The objectives stated by the Organization are not being pursued. 5.2.4. False, incomplete or misleading information has been furnished to the Government. 5.2.5. No reasonable activity has been undertaken by the Organization for a period of one year after signing of this MOU. 5.2.6. The Organization has ceased to exist. 5.3. In case of termination of this MOU, the registration of the Organization will stand cancelled and it shall cease all its activities forthwith. 6. The Organization may file a written request for cancelation of its registration and closing of its activities with 3 months prior notice to the Government for its approval and clearance in accordance with the laid down procedure. 7. Entry into Force and Duration of MOU This MOU shall enter into force on the date of signatures and shall remain valid unless terminated. In witness whereof, the undersigned representatives, duly authorized by the Government and the Organization, have signed this Memorandum of Understanding. Done at Islamabad, on this…………day of……………..… 20 , in English language in two originals, the signatories to retain a copy each. Joint Secretary For the Government of the Islamic Republic of Pakistan ( ) Organization Representative