PBM

Civil Society / NGOs Wing

‘National Zakat Foundation’ (NZF-defunct) providing institutional grant and assistance to Non-Government Organizations (NGOs) since 1982, merged into ‘Pakistan Bait-ul-Mal’ (PBM) with all its operational parameters and functional responsibilities in March, 2001, with the concern of broader and extensive participation in welfare projects carried out by NGOs at national level. The merger resulted in formulation of a new policy, relating to ongoing assistance and future charter of PBM under new administrative and financial responsibilities. The policy was devised by adopting a participatory approach i.e. holding consultative workshops and meetings with potential stakeholders, NGOs and the Ministry. After extensive consultations, Bait-ul-Mal Board (BMB) approved the policy in Sep, 2002. Since then, the various changes/modifications approved by the BMB are being incorporated in this edition.

Objectives

 

Resident Children are being provided the following facilities:-

   Institutional Support for Persons with Disabilities, Orphans, Destitute, Elderly & Juveniles (Strategy-I)
   Financial Assistance to Orphans (for health, education and training) (Strategy- I.I)
   Grant for Cataract Operation of the Poor & Needy (Strategy-II)
   Innovative Pilot Rehabilitative Project (Strategy-III) 

Strategy-I: Institutional Support for Persons with Disabilities, Orphans, Destitute, Elderly & Juveniles

 

The institutions, providing welfare services to the above-mentioned vulnerable segments of society, are financially supported up to Rs.5 million once in a financial year in capital cost sharing basis. Grant upto Rs.0.2million without cost sharing can be given to NGOs for rural based projects. These institutions are supported for broadening the capacity of existing project or initiating a new one. Grant is given for construction, purchase of equipment (medical / training), purchase of vehicles (use of disabled persons) and furniture in following fields:
    Health
   Vocational Training
   Orphanages
   Special Education/Treatment & Rehabilitation of Disabled   
   Grant for purchase of vehicle is provided to the NGOs working for disabled persons, provided that these vehicles are used for providing direct services to the disabled persons.

Eligibility Criteria:

 

   NGOs Must be registered under any one of the following laws;
* Societies Registration Act 1860
* Trust Act 1882
* Cooperative Societies Act 1925
* Social Welfare Agencies Registration and Control Ordinance 1961
* Companies Ordinance 1984
   Must have 3 years record of providing free services to at least 25% beneficiaries supported by audited accounts (by registered chartered accountants) and undertakes to provide free services to at least 25% beneficiaries for the granted project.
   Must have adequate financial resources to share the capital cost of project and to bear entire recurring expenses.
   Must show the availability of amount of its self-contribution in a bank account.
   Be able to ensure the sustainability of project on long-term basis.
   Newly registered NGO, having 3 years track record in the form of audited accounts & bank statements may also apply.
   NGOs working in backward areas (NA, rural AJK, rural Sind, rural Punjab &amp; NWFP &amp; entire Balochistan except Quetta) may provide bank statement alongwith income &amp; expenditure statement for last 03 years duly verified by a bank manager / qualified accountant, instead of a chartered acc</span>ountant.

Strategy-I.I: Financial Assistance to Orphans (for health, education and training)

 

PBM provides grant for projects aimed at social uplift of vulnerable groups especially orphans &amp; destitute children. Grant covering ‘capital cost of orphanages’ is provided in strategy-I. Whereas, Strategy-I.I caters for individual rehabilitation of orphans covering their expenses in the fields of;
    Health
   Vocational Training
   Education
This would be in the form of annual grant upto Rs.1million per registered orphanage. The maximum limit of grant per orphan would be Rs.25,000/-per annum. Grant for the second year would be given after satisfactory utilization of previous grant. Accounts in this respect can be inspected at any time by PBM authorities.

Eligibility Criteria:

 

   NGOs Must be registered under any one of the following laws;
* Societies Registration Act 1860
* Trust Act 1882
* Cooperative Societies Act 1925
* Social Welfare Agencies Registration and Control Ordinance 1961
* Companies Ordinance 1984
   Must have 3 years record of providing services to orphans/running orphanage supported by audited accounts (by registered chartered accountants)
   Registered orphanages having more than 100 orphans shall be given maximum annual grant of Rs.1 million for 5 years (subject to satisfactory utilization and proper maintenance of accounts)
   The orphans getting this annual grant must be residents of the said orphanage
   NGOs working in backward areas (NA, rural AJK, rural Sind, rural Punjab, rural NWFP & Balochistan except Quetta City) may provide bank statement alongwith income & expenditure statement for last 3 years duly verified by a bank manager / qualified accountant, instead of a chartered accountant

Strategy-II: Grant for Cataract Operation of the Poor & Needy

 

‘Cataract’ is one of the most common eye diseases among general public. A mechanism has been devised for providing proper professional medical treatment to such disease, in cooperation with some leading NGOs/hospitals, already providing eye care facilities in the country. PBM has fixed certain criteria for nominating a centre as Free Designated Centre on the basis of infrastructure, equipment, human resource, services etc as mentioned in the application form. The technical committee has fixed cost on cataract operation at the rate of Rs.2,000/- per patient. The grant is given on quarterly basis, after the NGO reports the amount expended on such operations. Cost of laboratory test (if required) is also included in it. However, post operation medicines are not included in this cost. Over &amp; above the cost fixed by the Technical Committee, any other expense shall be borne by the NGO and nothing is to be charged from the patient. In case, the patient is charged, the contract shall stand cancelled. Every NGO will ensure that the items used in the operation are of certain standard. The NGO will not use any sub-standard item including IOL, during surgery.  On the same lines, grant shall be given to patients of other diseases, subject to individual approval of case by BMB.

Eligibility Criteria:

 

   NGOs Must be registered under any one of the following laws;
* Societies Registration Act 1860
* Trust Act 1882
* Cooperative Societies Act 1925
* Social Welfare Agencies Registration and Control Ordinance 1961
* Companies Ordinance 1984
   Must have at least 3 years record of providing free services to at least 50% beneficiaries in eye care supported by audited accounts (by registered auditors)
   Track record of at least 3 years of successful operations in the field of eye care

Strategy-III: Innovative Pilot Rehabilitation Project

 

PBM offers partnership to NGOs for Flagship projects that have a large, nationwide scope. The interested / applicant NGOs / institutions must have their own nationwide network or collaboration with other NGOs, throughout Pakistan. The share in capital cost between PBM and NGO would be at 75-25 ratio, whereas, for recurring expenses (salaries of staff &amp; rent of building) it would be on sliding scale basis as under:

Year PBM share (%) NGO Share (%)
1st year 75 25
2nd Year 50 50
3rd Year 25 75

The financial details of the proposed capital cost, time, physical work etc, must clearly spell out the proportion of capital and recurring expenses by PBM and NGO respectively for each year. It is the responsibility of NGO to develop resources in the initial period, to meet the recurring expenses after the collaboration period is over, the arrangements must satisfy PBM. After the completion of period of five years NGO will sustain the project on self help basis. The maximum grant provided by PBM is Rs.27 million. Grant for construction of building is released in three equal installments. In case of improper utilization of PBM grant in aid further payment will be withheld. PBM will recover the entire improperly utilized amount from securities/ guarantees /encashment of performance bond and finally NGO will be blacklisted. The proposed project must address not only immediate needs of the target group, but ensure their rehabilitation by making them self sufficient and contributing towards the society.

Eligibility Criteria:

 

   NGOs Must be registered under any one of the following laws;
* Societies Registration Act 1860
* Trust Act 1882
* Cooperative Societies Act 1925
* Social Welfare Agencies Registration and Control Ordinance 1961
* Companies Ordinance 1984
   Must have atleast 5 years record of providing free services to atleast 50% beneficiaries supported by audited accounts (by registered auditors)
   Track record of atleast 5 years of organising and implementing large projects
   Must have adequate financial resources to share the capital cost and recurring expenses of project
   Be able to ensure the sustainability of project for 3 upcoming years for which financial assistance is requested
Must provide past 5 years audit reports & 3 years bank statements alongwith details of fixed & current assets
Well- established in financial & managerial abilities to sustain the project on charitable basis 
The NGO is bound to deposit its 25% share before release of every instalment in a separate bank account
NGO is bound to convey acceptance, furnish Securities/guarantees and performance bond as per contract. The option of an insurance guarantee shall be made out of list of prequalified insurance companies (In Pakistan)
A certified Chartered Accountant firm must audit the accounts of the NGO. The firm would check the accounts of monthly basis and send a report to PBM. The same firm will prepare a year-ended report.

Monitoring & Evaluation

 

The sustainability of a project for which the grant has been released, is ensured by surprise visits and checking of accounts on the spot. This ensures error free and vigilant monitoring and evaluation system by efforts of Head Office, down to District Offices. The project for which PBM grant-in-aid is given is monitored for a period of 5 years and quarterly progress/utilization reports are obtained from the NGO. If an NGO fails to provide evidence of proper utilization of grant and quarterly utilization/ progress reports for the granted projects, the case is transferred to Monitoring &amp; Evaluation Wing (PBM) for revoking the grant given to the NGO by taking legal action. Thus the NGO is black listed by informing other donor agencies and Government of Pakistan as well.