The Government of Pakistan has set the Zakat threshold (Nisab) at Rs503,529 for the Zakat year 1446–1447 A.H., paving the way for automatic deductions from eligible bank accounts as Ramadan approaches. The notification, issued by the Ministry of Poverty Alleviation and Social Safety from Islamabad, directs all banks and financial institutions to deduct Zakat at source from savings accounts, profit-and-loss sharing accounts, and other similar deposits where balances meet or exceed the prescribed threshold. This year, the first day of Ramadan-ul-Mubarak 1447 A.H. is expected to fall on February 19 or 20, 2026, pending moon sighting, and will serve as the date for deductions. Accounts holding less than the Nisab amount will remain exempt from deductions.
The central objective of this policy is to streamline the collection of Zakat and ensure that funds are promptly transferred to the Central Zakat Account for distribution among eligible beneficiaries. All collecting agencies and financial institutions, including those under the supervision of the State Bank of Pakistan, have been instructed to comply fully with the notification and implement the automatic deduction process without delays. Banks headquartered in Karachi are expected to play a leading role in coordinating the nationwide execution of this initiative, ensuring uniformity and timely processing across regions.
By fixing the Nisab at Rs503,529, the government has provided clarity for account holders on whether their balances are subject to Zakat deduction this year. This automated process is particularly important given the large volume of accounts that surpass the threshold during the holy month of Ramadan, when charitable giving typically increases. The measure reduces administrative delays and ensures that Zakat reaches intended recipients, including the underprivileged, widows, orphans, and other vulnerable groups, in a timely manner.
Experts note that account holders should review their balances ahead of the first day of Ramadan to confirm whether they will fall under the automatic deduction scheme. For those whose balances are close to the threshold, financial planning may be required to either qualify for exemption or accommodate the deduction. The policy also reinforces the role of financial institutions in facilitating religious obligations while maintaining transparency in collection and distribution processes.
In addition to savings accounts, profit-and-loss sharing accounts and similar instruments are subject to Zakat deductions if balances meet the threshold. The automatic deduction process, monitored by the State Bank of Pakistan, is designed to ensure consistency and accountability, reducing the risk of errors and delays. The move aligns with broader efforts to digitize financial and religious transactions, leveraging banking infrastructure for efficient compliance.
Overall, the announcement of the Zakat threshold for 1446–1447 A.H. reflects the government’s ongoing focus on structured collection and distribution of charitable funds, emphasizing accountability, efficiency, and support for socially vulnerable communities during Ramadan. For account holders, the key takeaway is clear: any bank balance exceeding Rs503,529 on the first day of Ramadan will be automatically deducted for Zakat, unless specifically exempted under existing rules. The policy ensures that charitable contributions are managed systematically, supporting both religious obligations and social welfare programs across the country.
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