EXCLUSIVE: Pakistan witnesses 20 per cent decline in donations this Ramazan

Despite the increasing number of people seeking assistance from generous benefactors and the widespread visibility of free food and ration distribution points throughout Karachi and possibly the entire country, early indicators suggest a notable (20 per cent) decline in the magnitude of collective giving this Ramazan compared to last year.

In the organized charitable sector, there were some exceptions. Globally reputable organisations such as Sindh Institute of Urology and Transplant (SIUT) and Layton Rahmatullah Benevolent Trust (LRBT), among others, reported about 25 per cent improvement in collections compared to 2023. However, they expressed concern that this gain in funds might not be sufficient to cover the escalating cost of operations. The steep spike in costs, exacerbated by currency devaluation has made necessary imported equipment and materials prohibitively expensive.

Given that charity in Pakistan predominantly operates through cash transactions, tracing the money trail poses a significant challenge. The absence of verifiable, credible data or systematic evidence-based research study necessitates an alternative approach for projections and assessment in this piece. Our insights are based on interviews conducted with leading philanthropists, workers and volunteers actively engaged in the charitable sector across the country. 

There are obvious signs that in response to escalating number of families facing dire circumstances amidst a prolonged phase of economic strain in the country, Pakistanis are reverting to traditional practices of Zakat/Khairat focusing on personalised distribution. This trend has compounded the concerns of charitable organisations already grappling to meet their targets, with a downward trend evident in donations graph.

Many attributed the fall to a substantial percentage of charitable funds from Pakistani expats being diverted towards Gaza. Additionally, there was widespread acknowledgement of the disillusionment among Pakistani diaspora with recent election results, which contributed to their lack of enthusiasm in contributing to charities here.

When examining lower-than-expected donation collections this Ramadan, several prominent philanthropists highlighted the diminished inflow of funds from overseas. Many attributed the fall to a substantial percentage of charitable funds from Pakistani expats being diverted towards Gaza. Additionally, there was widespread acknowledgement of the disillusionment among Pakistani diaspora with recent election results, which contributed to their lack of enthusiasm in contributing to charities here.

Dr Muhammad Amjad Saqib, Chairman of Akhuwat Foundation, offered a deferring perspective, attributing the moderation in inflows to the growing economic stress to average families globally. He expressed skepticism regarding significant donations being diverted to Gaza, citing logistic difficulties in delivering aid to the conflict zone. Dr Saqib emphasised his belief that Pakistanis possess intelligence and compassion to separate politics from acts of kindness.

In case of local mobilisation of donations, the key factor cited for moderation was the loss in real income and assets value among middle-class families, assumed to be more inclined towards charities.

In case of local mobilisation of donations, the key factor cited for moderation was the loss in real income and assets value among middle-class families, assumed to be more inclined towards charities. Another reason mentioned was the increasing number of organisations soliciting donations. Amidst general sense of uncertainty, many people are seeking stronger bonds with their own extended families, baradries and communities such as Memon, Bohris, Agha Khanis, Dehli Saudagaran, Chiniotis, etc., and tend to divert a larger portion of donatable funds there. Additionally, many businessmen are noted to be allowing their employees to benefit from their generosity.

Majyd Aziz, former president, Karachi Chamber of Commerce and Industry, asserts, “A vast majority of employers, recognising the hardships faced by their workers this year, prioritised providing assistance to them before extending help elsewhere.”  

When reached over phone, Isfandyar Inayat, General Manager of The Citizen Foundation (TCF), shed light on the societal tendency towards consumptive giving rather than supporting transformative causes, which he partly held responsible for less than potential resource mobilization for charitable entities. He noted, “People tend to prefer instant gratification that consumptive options like free food, ration, dowry, etc., offer. In doing so, they often overlook more substantiative long-term causes such as adopting a school or supporting a child’s education.”

“During the past year, healthcare inflation touched 44 per cent, with a 30 per cent increase in the cost of lifesaving drugs and a 100 per cent increase in the cost of diagnostic tests. At Indus, we have witnessed first-hand the devastating impact of not only tough economic conditions but also the subsequent increase in disease burden.”

Dr Abdul Bari Khan, President, Indus Hospital

According to Pakistan Centre for Philanthropy (PCP), the total annual charity in Pakistan is currently estimated to be Rs800 billion. Of this amount, 17 per cent is directed towards providing ready food, and a similar percentage goes to health causes. Mosques and dowries collectively consume 25 per cent, whereas mere 13 per cent is spent on schooling of children, with the remaining funds distributed to other causes.

Musadaq Zulqarnain, Chairman and CEO Interloop Group of Companies and a leading philanthropist, expressed dismay at the exhibitionism prevalent in charity, which not only violates the spirit of giving but also results in underutilization of precious funds. “Many, particularly in Punjab, seek warm glow, gratitude from recipients and personal recognition through direct distribution or by establishing their own platforms instead of supporting established organisations. This often leads to unprofessional management and suboptimal outcome

Dr Abdul Bari Khan, President of Indus Hospital, advocated for an increase in donations without specifying the magnitude of collection this year. He pointed out, “During the past year, healthcare inflation touched 44 per cent, with a 30 per cent increase in the cost of lifesaving drugs and a 100 per cent increase in the cost of diagnostic tests. At Indus, we have witnessed first-hand the devastating impact of not only tough economic conditions but also the subsequent increase in disease burden. Notably, the number of patients has risen and previously financially stable patients now qualify for Zakat support. People indeed require more assistance than ever before.”

Karimullah Adani, managing partner of Ali Associates and founder of Amanatdar, partly attributed the decline in donations to the damaging propaganda against charities and charitable entities by chatterati on social media. He remarked, “It’s absurd to criticise compassion and volunteerism in a society like ours, where 40 per cent of the population is condemned to live below the poverty line. For them it is not a matter of choice and it’s heartless to expect them to wait on empty stomachs for the economy to turn around”.

Several other notable charitable organisations, including Edhi Foundation, Shaukat Khanum Memorial Cancer Hospital and Research Centre, Al Khidmat Foundation, Saylani Welfare Trust, Chhipa Welfare Association have indicated moderation in their collections. However, they have chosen to refrain from commenting until after Ramazan when their donation accounts are consolidated.

(The writer can be reached at asubohi@hotmail.com)