Karachi, March 12, 2024: In anticipation of the forthcoming holy month of Ramadan ul Mubarak, all banks across Pakistan will observe a bank holiday today, March 12, 2024.
The State Bank of Pakistan (SBP) made the announcement, stating that the closure aims to facilitate the deduction of Zakat, a fundamental pillar of Islamic finance, on the first day of the Islamic month of Ramadan ul Mubarak 1445 A.H.
On this designated bank holiday, the SBP, along with all banks, Development Finance Institutions (DFIs), and Micro Finance Banks (MFBs), will remain closed for public dealing. However, employees of these institutions will be required to attend the office, treating it as a normal working day with the exception of public-facing services.
The Administrator General Zakat has released the Nisab (minimum wealth threshold) for Zakat for the Zakat Year 1444-45 A.H., setting it at Rs. 135,179. The Nisab-e-Zakat represents the minimum amount in bank accounts upon which Zakat, a mandatory almsgiving, will be deducted on the first day of Ramadan-ul-Mubarak.
In accordance with the Zakat and Ushr Ordinance of 1980, no Zakat deduction at source shall be made if the balance in specified accounts is less than the Nisab notified for the respective Zakat year. The first day of Ramadan has been officially declared as the “deduction date,” marking the collection of Zakat from various accounts, including savings accounts, profit and loss-sharing accounts, and other similar accounts. The Zakat is deducted at a rate of 2.5% of the total amount credited in the account.
This bank holiday aligns with Islamic principles, emphasizing the importance of charitable giving during the holy month of Ramadan. The Zakat deduction mechanism ensures that eligible individuals contribute to charitable causes, supporting the less fortunate and promoting economic equity within the Muslim community.
The announcement reflects the commitment of financial institutions to adhere to religious obligations and facilitate the seamless observance of religious practices among their clientele. It also underscores the collaborative effort between the State Bank of Pakistan and the banking sector in promoting financial inclusivity while respecting cultural and religious sensitivities.
As the nation prepares for the commencement of Ramadan ul Mubarak, the bank holiday for Zakat deduction stands as a reminder of the values of generosity, compassion, and community that are integral to this sacred month in the Islamic calendar. The gesture highlights the role of the financial sector in contributing to the spiritual and social welfare of the Pakistani population during this auspicious time.
