Pakistan sets Zakat deduction threshold for current year

ISLAMABAD: The Ministry of Poverty Alleviation and Social Protection has set the Zakat threshold for the current year, the government announced on Tuesday.

The Administrator General of Zakat fixed the nisab — the minimum amount of savings on which Zakat is payable — at Rs503,529 for 2026.

Accounts with balances below this amount on the first day of Ramadan will not be subject to Zakat deductions, the ministry said in a statement.

According to the announcement, Zakat will be deducted from all eligible savings accounts and profit‑and‑loss sharing accounts on the first day of Ramadan.

Funds collected under Zakat will be transferred to the Central Zakat Account maintained by the State Bank of Pakistan.

The State Bank of Pakistan has also announced that all banks and financial institutions will remain closed for public transactions on the first day of Ramadan, in line with the annual Zakat collection process.

The government’s annual Zakat collection plays a key role in financing social welfare programmes aimed at supporting the needy across the country.