Pakistan has officially announced a bank holiday on Monday, March 3, 2025, to facilitate the deduction of Zakat, a practice observed annually under government regulations.
The bank holiday will be observed nationwide, affecting financial institutions across the country.
In this regard, the State Bank of Pakistan (SBP) has issued an official statement confirming the bank holiday on March 3, 2025, in line with its yearly policy of Zakat deduction. The announcement was made on Friday, stating that all banks, development finance institutions (DFIs), and microfinance banks (MFBs) will remain closed for public dealings on the specified date.
According to the SBP, this decision complies with the directives issued by the Ministry of Poverty Alleviation & Social Safety, Government of Pakistan. The ministry’s notification, outlined in BPRD Circular Letter No. 04 dated February 27, 2025, mandates that financial institutions cease public dealings on the bank holiday to ensure the smooth deduction of Zakat from eligible accounts.
While banking services for customers will be unavailable due to the bank holiday, all bank employees are required to report to work as per routine. The SBP directive specifies that financial institutions will continue internal operations, ensuring the seamless execution of administrative and back-office functions without any disruptions. However, no over-the-counter transactions will be conducted during the bank holiday.
The observance of this bank holiday is in accordance with the Zakat and Ushr Ordinance, which mandates the deduction of Zakat from eligible savings accounts, profit and loss sharing accounts, and other financial instruments. This system is part of the government’s broader initiative to collect and distribute Zakat funds for the welfare of underprivileged citizens.
During the bank holiday, customers will not be able to conduct in-branch transactions such as cash withdrawals, deposits, or check clearances. However, digital banking channels, including ATMs, mobile banking, and internet banking, will remain fully operational to ensure continued access to financial services.
The SBP has advised customers to plan their financial activities in advance to avoid any inconvenience resulting from the bank holiday. Businesses and individuals are encouraged to complete necessary transactions before March 3, as all financial institutions will be unavailable for public dealings on the designated date.
