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  "path": "/news/1991403/lhc-sets-aside-ruling-that-struck-down-policy-for-regulating-foreign-funding-of-ngos-npos",
  "publishedAt": "2026-04-13T18:51:40.000Z",
  "site": "https://www.dawn.com",
  "tags": [
    "Pakistan",
    "ruling",
    "regulate foreign funding"
  ],
  "textContent": "LAHORE: The Lahore High Court on Monday set aside a ruling that had struck down a federal government policy introduced in 2022 to regulate foreign funding of non-governmental and non-profit organisations.\n\nThe policy was set aside by a single bench in September 2024, with Justice Asim Hafeez observing the constitutional scheme did not envisage the exercise of legislative powers by the federal cabinet unless such power or authority was exercised under the authority of the legislature.\n\nHe had declared the policy unlawful, invalid and of no legal effect.\n\nBut a two-member bench comprising Justice Chaudhry Muhammad Iqbal and Justice Syed Ahsan Raza Kazmi observed today that such policy-making squarely fell within the executive domain and was protected from “undue judicial interference”.\n\nThe bench restored the Policy for Local NGOs/NPOs Receiving Foreign Contributions 2022.\n\nMultiple intra-court appeals were filed by the federation in the wake of a Sept 6, 2024 judgment.\n\nAdvocate Saqib Jillani, who represented the petitioners, argued that the 2022 policy, like an earlier 2013 framework struck down by courts, lacked statutory backing and violated constitutional protections, including the right to freedom of association and business.\n\nThe federal government, represented by Additional Attorney General Mirza Nasar Ahmad, challenged the single-bench ruling, maintaining that the policy had been duly approved by the federal cabinet and issued in accordance with the Rules of Business, 1973.\n\nThe division bench framed two central questions: whether the federal government had the authority to formulate policies regulating NGOs receiving foreign contributions, and whether constitutional courts could interfere in such policy decisions under writ jurisdiction.\n\nThe bench answered both questions in favour of the government.\n\nThe bench held that under Articles 90 and 99 of the Constitution, the federal government was fully empowered to conduct its business and formulate policies.\n\nIt maintained that the Rules of Business, 1973 — framed under constitutional authority — provide a binding procedural framework for decision-making.\n\nThe bench noted that the 2022 policy was approved by the federal cabinet, and issued by the ministry of economic affairs, which was competent to regulate foreign assistance.\n\nThe bench described the policy as a comprehensive regulatory instrument governing the receipt, utilisation, monitoring and accountability of foreign contributions by NGOs.\n\nOn the question of judicial review, the bench reiterated settled law that courts should exercise restraint in policy matters unless they violated fundamental rights, the Constitution, the statutory laws or were made in bad faith.\n\n“In the absence of such violations, policy-making remains the exclusive domain of the executive,” the bench observed.\n\nThe bench further ruled that the single judge had incorrectly invoked Article 18 (freedom of trade and business), holding that the matter instead fell within the domain of Article 99 of the Constitution, which governs the conduct of federal government business.",
  "title": "LHC sets aside ruling that struck down policy for regulating foreign funding of NGOs, NPOs"
}