Pakistan sets new Zakat threshold for current year

ISLAMABAD: The Ministry of Poverty Alleviation and Social Protection has announced the new threshold for this year’s Zakat, which will be effective as of the first day of Ramadan. Specifically, the Administrator General of Zakat has set the nisab — or the minimum amount of savings on which Zakat is payable — at Rs503,529 for 2026.

Accounts with balances below this threshold on the first day of Ramadan will not be subject to Zakat deductions. The Ministry’s statement highlights that all eligible savings and profit-and-loss sharing accounts will receive their Zakat from banks based on a process set by the State Bank of Pakistan.

This year’s announcement emphasizes the critical role of annual Zakat collection in financing essential social welfare programs, aimed at supporting the needy across Pakistan.

Furthermore, this year, all banks and financial institutions are to remain closed for public transactions on the first day of Ramadan, as per the standard procedures outlined by the State Bank of Pakistan. These closures are designed to streamline the process of transferring collected funds into the Central Zakat Account maintained by the bank.

The government’s annual Zakat collection is a cornerstone in its efforts to address social welfare issues and ensure support reaches those most in need within the nation.