Karachi, February 28, 2025 – The State Bank of Pakistan (SBP) has officially declared a Bank Holiday on Monday, March 3, 2025, in line with its annual practice of Zakat deduction.
This announcement was made through a statement issued by the SBP on Friday, confirming that all banks, development finance institutions (DFIs), and microfinance banks (MFBs) across the country will remain closed for public dealings on the designated date.
According to the SBP, the decision aligns with the directives outlined in a notification issued by the Ministry of Poverty Alleviation & Social Safety, Government of Pakistan. The notification, circulated under BPRD Circular Letter No. 04 dated February 27, 2025, mandates the closure of banking operations to facilitate the process of Zakat deduction from eligible accounts.
While the Bank Holiday will prevent customers from engaging in over-the-counter transactions, it is important to note that all bank employees will still be required to report to work. As per the SBP directive, financial institutions will operate internally as per routine, ensuring that administrative and back-office functions continue uninterrupted, though no public dealings will take place.
The Bank Holiday for Zakat deduction is observed annually under the Zakat and Ushr Ordinance, which mandates the deduction of Zakat from savings accounts, profit and loss sharing accounts, and similar financial instruments held by eligible account holders. This practice is part of the government’s efforts to collect and distribute Zakat for the welfare of underprivileged segments of society.
During the Bank Holiday, customers will not be able to carry out in-branch transactions such as cash withdrawals, deposits, or check clearances. However, alternative banking channels, including ATMs, mobile banking, and internet banking services, will remain operational, allowing users to conduct essential transactions seamlessly.
The SBP has urged customers to plan their financial activities accordingly to avoid inconvenience due to the Bank Holiday. With the closure affecting public dealings nationwide, individuals and businesses are advised to complete any necessary banking transactions ahead of March 3.
This announcement serves as a reminder of the SBP’s role in regulating financial operations in accordance with government policies while ensuring smooth banking operations despite the Bank Holiday restrictions.