KARACHI: The State Bank of Pakistan (SBP) announced on Friday that it will observe a bank holiday on the 1st day of Ramadan-ul-Mubarak, 1445 A.H., for the purpose of the annual Zakat deduction.
The central bank, in a statement, declared that it will remain closed for public dealings on this auspicious day, while all employees of banks, Development Financial Institutions (DFIs), and Microfinance Banks (MFBs) will attend the office, treating it as a normal working day, except for public dealing activities.
This move comes as part of the government’s commitment to facilitating the deduction of Zakat, a fundamental practice in Islam, during the holy month of Ramadan. The Nisab (minimum threshold for Zakat) for the Zakat year 1444-45 A.H has been set at Rs 135,179, providing clear guidelines for the deduction process.
The Ministry of Poverty Alleviation and Social Safety had previously notified the Nisab, highlighting the criteria for Zakat deduction from bank accounts on the first day of Ramadan. This decision reinforces the government’s dedication to supporting those in need through the traditional Islamic practice of charitable giving.
The ministry emphasized that no deduction of Zakat at source will occur if the amount standing to the credit of an account is less than Rs 135,179 on the first day of Ramadan-ul-Mubarak, 1445 A.H. This criterion is based on the assets mentioned in column 2 of Serial No. 1 of the first schedule of Zakat and Usher Ordinance, 1980.
As part of the guidelines provided by the ministry, the first day of Ramadan, known as the ‘deduction date,’ is anticipated to fall on either the 12th or 13th of March 2024, contingent upon the appearance of the moon. On this date, Zakat will be deducted from Saving Bank Accounts, Profit and Loss Sharing Accounts, and other similar accounts with a credit balance of Rs 135,179 or more.
The government’s effort to set a clear threshold for Zakat deduction reflects its commitment to ensuring that financial assistance reaches those who need it most. This proactive approach aligns with the principles of social justice and compassion inherent in the practice of Zakat, fostering a sense of community and shared responsibility during the sacred month of Ramadan.
The announcement of the bank holiday serves as a reminder to the public of the importance of charitable giving and community support, reinforcing the spirit of Ramadan as a time for reflection, generosity, and compassion towards those less fortunate.
