Karachi, February 27, 2025 – The State Bank of Pakistan (SBP) on Thursday issued comprehensive instructions to all banks regarding the deduction of Zakat for the year 2025. The directive is aimed at ensuring the smooth implementation of Zakat deduction as per Islamic financial principles.
The SBP communicated these instructions to the presidents and CEOs of banks, development financial institutions (DFIs), and microfinance banks (MFBs). The instructions emphasize the deduction of Zakat at source from saving bank accounts, profit and loss sharing accounts, and similar deposits. Banks are required to deduct and deposit Zakat immediately after the designated deduction date.
A day earlier, the Ministry of Poverty Alleviation and Social Safety officially announced the Nisab of Zakat for the Zakat year 1445-46 AH, setting it at Rs 179,689. This means that all accounts maintaining a balance equal to or above this threshold will be subject to Zakat deduction on the first day of Ramadan.
The Ministry has formally informed all relevant financial institutions regarding the procedural aspects of Zakat deduction at source. The deduction will be applicable to saving accounts, profit and loss sharing accounts, and similar deposits held across banks in Pakistan. As per the official notification, the Administrator General Zakat has reaffirmed that only accounts meeting or exceeding the Nisab threshold will be eligible for deduction.
No Zakat deduction will be applied to accounts with balances below the stipulated Nisab of Zakat on the first day of Ramadan-ul-Mubarak 1446 AH. This day has been officially designated as the “Deduction Date,” expected to fall on March 25, 2025, subject to moon sighting. On this date, all financial institutions will be required to process the Zakat deduction as mandated by the government.
All Zakat Collection and Controlling Agencies (ZCCAs) have been instructed to ensure full compliance with the issued notification. The ministry has emphasized that financial institutions must adhere strictly to the Nisab of Zakat and transfer the deducted amount to the Central Zakat Account No. CZ-08, maintained at the State Bank of Pakistan. Additionally, banks must submit a copy of the return Form CZ-08 (A&B) to the ministry immediately after the successful transfer of Zakat funds.
The SBP has urged all financial entities to execute these instructions diligently to uphold the integrity of the Zakat system in Pakistan and facilitate its rightful distribution among those in need.