Zakat collected through Pakistani banks to be disbursed by provincial authorities
Banks and other
financial institutions collected more than Rs11.77 billion in Zakat during
the 2024-25 financial year, with the federal government clarifying that
responsibility for the subsequent allocation and distribution of the funds
rests with provincial and local Zakat authorities.
The figures were
disclosed in a written response by Minister for Poverty Alleviation and Social
Safety Syed Imran Ahmed Shah to a question raised by MNA Aliya Kamran
in the National Assembly.
Under Section 3
of the Zakat and Ushr Ordinance, 1980, banks and financial institutions are
required to deduct Zakat from eligible accounts. The deducted amounts are
deposited into the Central Zakat Account (CZ-08) maintained by the
State Bank of Pakistan.
Read More World Bank expresses
disappointment over Pakistan’s tax collection efforts
According to the
ministry's response, total Zakat collected through the banking system during
2024-25 stood at Rs11,770,557,146.90.
The State Bank
provides the Ministry of Poverty Alleviation and Social Safety with
consolidated annual figures on Zakat collections. Data for the 2025-26
financial year, the ministry said, would be provided by the central bank after
the close of the financial year.
The ministry also
clarified the limits of its role in managing the funds. Following the
devolution of Zakat administration, provinces enacted their own legislation and
assumed responsibility for developing Zakat programmes and distributing funds
among eligible recipients.
Distribution is
carried out through District Zakat Committees and Local Zakat Committees,
rather than directly by the federal ministry.
The federal
government's role is primarily to release Zakat funds to the provinces and
other designated areas in bulk after approval by the prime minister. Once the
funds are transferred, the ministry said it has no authority over their
allocation, management or distribution at the provincial or local level.
Read
More Pakistani
government seeks Rs8.5 trillion in loans from banks to address budget shortfall
It further clarified
that it does not directly disburse Zakat to beneficiaries, including widows,
orphans and other eligible recipients.
The response
effectively places responsibility for determining beneficiaries and overseeing
the final use of Zakat funds with the provincial and local Zakat framework.
The question was
presented before the National Assembly after being deferred during the 27th
session.
Source: Minute Mirror