South Asian Nations Tighten Restrictions on Foreign NGO Funding

Governments across South Asia are increasingly implementing strict regulations on how non-governmental organizations (NGOs) receive and manage foreign funding. While officials often cite anti-money laundering efforts as the justification for these policies, critics argue that these measures effectively treat the right to associate as a state-granted privilege that can be revoked at will. The regulatory frameworks vary by country but share a common trend of increased government oversight and administrative hurdles.

In India, the Foreign Contribution (Regulation) Act, significantly tightened in 2020, mandates that organizations use a single government-designated bank branch in New Delhi and prohibits the transfer of foreign funds between organizations. Over the past decade, more than 16,000 NGO registrations have been cancelled in the country. Meanwhile, Nepal requires prior approval from the Social Welfare Council and the Ministry of Finance for every individual foreign-funded project. Similarly, Pakistan requires international organizations to secure fresh government authorization before accepting funding from new sources or establishing new offices. Legal experts suggest these restrictive practices often exceed international standards, prompting calls for judicial review regarding the right to international financial cooperation.