Non-Governmental Organizations (NGOs), once called "force multiplier", are now having trust issues as public skepticism about the virtues and advantages of NGOs has deepened. Critically examine why NGOs space is shrinking in many parts of the world with specific reference to Pakistan.

Introduction

Non-governmental organisations have long been described as force multipliers that extend the reach of the state in health, education, relief and rights. Yet across the world, including in Pakistan, governments are tightening controls on NGOs and public trust in them has weakened. The causes lie both in state behaviour and in the conduct of the NGO sector itself.

NGOs as force multipliers

NGOs deliver services where the state is absent, respond rapidly to disasters, innovate in fields such as microfinance and community sanitation, monitor human rights and represent marginalised groups. In Pakistan, organisations such as the Edhi Foundation, The Citizens Foundation, Akhuwat, SIUT and the Orangi Pilot Project have earned wide respect, and NGOs played a major role in relief after the 2005 earthquake and the 2010 and 2022 floods.

Why NGO space is shrinking globally

Security and counter-terrorism. After 9/11, governments introduced laws to prevent charities from being used to finance terrorism. International standards set by the Financial Action Task Force require oversight of the non-profit sector, which some states use broadly to restrict NGOs.

Foreign funding restrictions. Many governments regard foreign-funded NGOs as instruments of external influence. Russia's "foreign agent" law (2012), restrictions in Hungary and amendments to India's Foreign Contribution (Regulation) Act are examples.

Populism and nationalism. Populist leaders portray NGOs advocating human rights, minorities or environmental protection as elitist or anti-national.

Geopolitics. Rivalry among great powers has made governments suspicious of organisations seen as linked to foreign governments.

Credibility problems within the sector. Scandals involving misuse of funds or misconduct, high overheads, donor-driven agendas, lack of transparency and a gap between professional NGOs and local communities have undermined public trust.

The Pakistani context

Pakistan has a large and diverse NGO sector, from community welfare organisations to international NGOs. Public suspicion grew after reports that a fake vaccination campaign was used in the search for Osama bin Laden in 2011, which also harmed the polio programme. In 2015 the government introduced a policy requiring international NGOs to register with the Ministry of Interior and sign agreements with the Economic Affairs Division; several INGOs were later asked to leave. Local NGOs receiving foreign funds face additional clearances. Measures to meet FATF requirements tightened oversight of charities. Some advocacy NGOs are accused of promoting foreign agendas, while religious and political groups have occasionally used charitable fronts.

Critical examination

States have legitimate reasons to require transparency, prevent terrorist financing and ensure that aid aligns with national priorities. But broad, discretionary restrictions also silence legitimate advocacy, delay humanitarian work and discourage citizen participation. Shrinking civic space is often a symptom of democratic backsliding. At the same time, NGOs that depend heavily on foreign donors and lack local roots have made themselves vulnerable to suspicion. Notably, Pakistanis remain among the most generous givers to local charities, which shows that the trust deficit concerns particular types of NGOs rather than civil society as a whole.

Way forward

A simple, time-bound and transparent registration regime with clear criteria and a right of appeal; risk-based rather than blanket regulation of the non-profit sector, as FATF itself recommends; public disclosure of NGO funding, spending and results; codes of conduct and self-regulation by NGO networks; greater reliance on local philanthropy and community ownership; and partnerships between government and NGOs in service delivery, disaster management and social protection.

Conclusion

NGO space is shrinking because of security concerns, fears of foreign influence, populist politics and the sector's own credibility problems. In Pakistan, NGOs remain indispensable for development and relief. Restoring trust requires accountable NGOs and a fair, transparent regulatory system that distinguishes between misuse and legitimate civic action.