Karachi, February 13, 2026 – Banks across Pakistan will remain closed next week for the annual deduction of Zakat on the first day of Ramadan, subject to the sighting of the moon, in line with the country’s Zakat and Ushr Ordinance, 1980.
The State Bank of Pakistan (SBP) is expected to issue formal directives to all commercial banks shortly regarding the Zakat deduction process for 2026. Under the prevailing system, banks deduct Zakat at source from savings accounts, profit and loss sharing (PLS) accounts, and other similar deposit accounts that meet the prescribed eligibility criteria.
According to banking sources, the deduction will be made strictly in accordance with the calculation and instructions issued by the Ministry of Poverty Alleviation and Social Safety. While the ministry has yet to officially announce the Nisab threshold for the current year, it is expected to release the updated figure in the coming days.
Last year, the Nisab for compulsory Zakat deduction was fixed at Rs179,689. Under this threshold, no Zakat is deducted at source if the balance in an eligible account is below the specified amount on the first day of Ramadan. Only accounts with a credit balance equal to or exceeding the notified Nisab are subject to automatic Zakat deduction.
As per the provisions of the Zakat and Ushr Ordinance, 1980, the first day of Ramadan-ul-Mubarak has been designated as the official “Deduction Date” for Zakat from savings bank accounts, PLS accounts, and other similar deposit categories. The deduction applies to assets listed in Column 2 of Serial No. 1 of the First Schedule of the ordinance.
Banking officials have advised depositors to review their account balances ahead of the deduction date and ensure their financial records are up to date. Customers who hold Zakat-exempt accounts, including those who have submitted valid Zakat exemption declarations, are also encouraged to confirm their status with their respective banks to avoid any inconvenience.
The annual Zakat deduction mechanism aims to streamline the collection of Zakat and ensure transparent distribution through official welfare channels. The funds collected are utilized for poverty alleviation, social safety programs, and assistance to deserving segments of society across the country.
With Ramadan approaching, the forthcoming announcement of the Nisab for 2026 will provide further clarity to account holders regarding their Zakat obligations and help ensure a smooth and efficient deduction process nationwide.