Updated 5 September 2026. Facts checked against the sources listed below.
Search for this question and you find a 2017 headline saying crowdfunding is "not allowed", a 2020 story about SECP approving a crowdfunding platform, and very little that explains the difference. The difference is the whole answer: the rules that exist are about selling shares to the public, not about asking people to donate.
This page is a plain-language explanation with links to the primary sources. It is not legal advice; if your situation is unusual, ask a lawyer.
On 27 March 2017 SECP issued a press release warning the public that crowd funding was not allowed in Pakistan and that no company could raise funds from the public through such a scheme (SECP press release, reported by ProPakistani). The release was addressed to a company that appeared to be raising funds from the public, and SECP’s remit is companies and securities. It did not discuss people asking for donations for a personal cause; the distinction below is ours, not SECP’s.
In October 2020 SECP approved the first digital platform for raising capital from the public under its regulatory sandbox, and said the sandbox would inform how crowdfunding platforms are regulated (Express Tribune, 31 October 2020). A 2025 note by the International Bar Association still describes the position as having no clear and comprehensive framework for crowdfunding websites (IBA: crowdfunding in Pakistan). What is settled is the principle: offering shares or returns to the public is a securities matter under SECP, whatever the channel. That is a different activity from a donation page, and GoFundMeNow does not offer it: nothing on this site sells a share, promises a return, or pools money for investment.
The same IBA note suggests that a not-for-profit company licensed under Section 42 of the Companies Act 2017 is one way a donation platform can gain credibility and legal legitimacy, while noting that the law was not written with crowdfunding sites in mind (IBA: crowdfunding in Pakistan). Asking people to donate to a personal or charitable cause is not an offer of securities; ordinary law about fraud, misrepresentation and money laundering still applies, and a fundraiser that lies about its purpose is a crime whatever platform it uses.
That is why review, documents and updates matter more than any badge. Our Trust & Safety page explains what we check before a fundraiser goes live, what we cannot guarantee, and how to report a concern. Our About page says what GoFundMeNow is and is not, including its current registration status.
Asking people to donate to a genuine personal cause is not an offer of securities and is not what SECP’s crowdfunding rules regulate. General law still applies: the story must be true, and the money must be used for the stated purpose. This is not legal advice.
No. Offering shares or returns to the public is a securities matter regulated by SECP, and GoFundMeNow is donation-based only: a business category fundraiser here is a gift to the business, not an investment.
Pakistan has no specific licence for donation-based crowdfunding platforms; the IBA note above suggests Section 42 not-for-profit status as a way for a platform to gain legitimacy. Whether a particular platform needs a licence for other activities depends on what else it does. Ask a lawyer for your own case.