The State Bank of Pakistan (SBP) has officially declared Monday, March 3, 2025, as a bank holiday for public dealing, in alignment with the government’s annual practice of Zakat deduction. This closure will apply to all banks, Development Finance Institutions (DFIs), and Microfinance Banks (MFBs) across the country. The holiday has been mandated by the Ministry of Poverty Alleviation & Social Safety, following the issuance of a notification under BPRD Circular Letter No. 04 dated February 27, 2025.
The purpose of this holiday is to allow for the smooth and efficient collection and deduction of Zakat, which is a religious obligation for eligible Muslims. Zakat is generally deducted at the beginning of the Islamic month of Ramadan from bank accounts that meet specific criteria, and the date for this process has been set to coincide with the announced bank holiday.
During the bank holiday, all public dealing services at banks and financial institutions will be suspended. This means that customers will not be able to access standard banking services such as withdrawals, deposits, or other in-person transactions at branch counters. However, it is important to note that while banks will remain closed for the public, all employees of banks, DFIs, and MFBs are still required to report to their respective offices. These employees will continue their duties, but the operations will be limited to the processing of internal activities, and no customer-facing transactions will be conducted.
The decision to designate a specific day for Zakat deduction is part of Pakistan’s ongoing efforts to facilitate this important religious duty while minimizing disruption to the banking system. By making this deduction process more organized, the government aims to ensure that the required funds are promptly collected and distributed to those in need, in accordance with Islamic guidelines.
Although the bank holiday is designed for Zakat purposes, the closure of branches may have implications for customers who need to perform urgent banking activities on that date. However, customers can still access their accounts and perform transactions through alternate digital channels such as ATMs, mobile banking apps, and online banking platforms, which will remain operational.
This holiday also reflects a growing trend of digitizing financial services and increasing reliance on technology for conducting daily banking activities. With the rise of online banking and mobile payments, customers have more options than ever to carry out their financial transactions outside the traditional brick-and-mortar branches, minimizing the inconvenience caused by physical closures.
Furthermore, the observance of the Zakat deduction process in an organized manner underscores the importance of financial regulations in promoting both social welfare and financial inclusion. The Zakat collected will be used for the benefit of the poor and needy, aligning with the Ministry of Poverty Alleviation & Social Safety’s efforts to address poverty and uplift vulnerable communities across Pakistan.
For those who may be unfamiliar with the Zakat deduction process, it is a mandatory charitable contribution in Islam, typically calculated as a percentage of wealth. The State Bank of Pakistan facilitates this process by providing the infrastructure necessary for automated deductions from eligible bank accounts. This mechanism ensures that the funds reach the designated beneficiaries efficiently and transparently.
In summary, the State Bank of Pakistan’s announcement of a bank holiday on March 3, 2025, aligns with the country’s religious and social obligations. While banking services will be unavailable for public dealing on this day, employees will continue to work behind the scenes to ensure the smooth processing of internal tasks and Zakat deductions. For customers, digital banking services will remain open, offering a seamless alternative to traditional branch operations.