ISLAMABAD, FEB 17: The Ministry of Poverty Alleviation and Social Protection has officially set the Zakat threshold for the current year at Rs503,529. The announcement clarifies that on the first day of Ramazan, no Zakat will be deducted from accounts holding less than this amount.

The decision provides clarity to account holders and financial institutions ahead of the holy month.

According to the ministry’s notification, Zakat will only be deducted from balances of Rs503,529 or more. This deduction will apply to savings accounts, profit and loss sharing accounts, and other related accounts as per existing Zakat rules.

Any account balance below Rs503,529 will remain exempt from Zakat deduction on the first day of Ramazan.

The amount deducted as Zakat will be deposited into the Central Zakat Account maintained at the State Bank of Pakistan. This centralized mechanism ensures proper collection and distribution under the government’s Zakat management system.

Banks holiday
The ministry also announced that all financial institutions will remain closed for public transactions on the first day of Ramazan. The closure is in line with standard practice to facilitate the smooth deduction and transfer of Zakat funds.

The announcement aims to streamline the annual Zakat deduction process while ensuring transparency and compliance with Islamic financial obligations.