The State Bank of Pakistan has issued a formal notification declaring a bank holiday on the first day of Ramadan‑ul‑Mubarak, 1447 A.H., specifically for the purpose of zakat deduction. According to BPRD Circular Letter No. 04, dated February 17, 2026, all scheduled banks, development finance institutions, and microfinance banks across the country will suspend public dealings on this day. While branch counters and customer-facing services will remain closed, bank employees are required to attend work and continue normal operational activities within the office, excluding public interactions.
The circular highlights the significance of aligning banking operations with religious and regulatory obligations. Zakat, a mandated charitable contribution under Islamic law, is calculated and deducted at the beginning of Ramadan. By designating the first day of Ramadan as a bank holiday for this specific purpose, the State Bank ensures timely compliance and uniformity across all financial institutions. The decision also enables banks to manage internal processes efficiently while minimizing disruption to public-facing services.
This advance notification allows banks to inform their customers and plan service continuity effectively. Clients and account holders are advised to complete any in-person banking transactions before the holiday or utilize digital channels where available. While branch operations will be temporarily halted, digital finance services, including mobile banking apps and online payment platforms, may remain operational, allowing users to conduct certain transactions without requiring branch visits.
The directive reflects a broader pattern in Pakistan’s financial sector of coordinating institutional operations with cultural and religious observances. The balance between ensuring compliance with zakat obligations and maintaining internal workflows exemplifies the careful planning by regulatory authorities. Bank management is expected to implement the circular’s instructions diligently, ensuring that internal processing, back-office functions, and employee attendance are maintained even when public dealing is paused.
Beyond the immediate impact on branch-level services, the holiday has wider implications for financial planning and operational scheduling. Payment settlements, payroll disbursements, corporate transactions, and other interconnected financial operations may require adjustment to accommodate the temporary cessation of public dealing. Banks and associated financial entities must ensure that workflows are aligned with the holiday to prevent delays or bottlenecks in critical services.
Overall, the State Bank of Pakistan’s circular reinforces the importance of regulatory compliance while respecting religious traditions. By clearly defining the scope of the bank holiday and mandating employee attendance for operational duties, the central bank provides a structured approach that allows both customers and financial institutions to plan effectively. This announcement ensures that zakat obligations are met punctually without disrupting the broader financial ecosystem, reflecting careful coordination between religious observance and modern banking operations.
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