Daily Times

A new study has revealed that Pakistanis contribute more than £1.7 billion ($2.19 billion) annually in zakat. This significant amount highlights the generosity of Pakistani Muslims, who donate 2.5% of their savings to those in need. According to the research by the International Center for Tax and Development (ICTD) and Lahore University of Management Sciences, over 50 million Pakistanis contribute to zakat every year.

The study, based on a survey of 7,500 Sunni Pakistanis, shows that zakat payments exceed the annual budget of Pakistan’s Benazir Income Support Programme (BISP). The BISP’s 2024/2025 budget is Rs598.7 billion ($2.16 billion), which is less than the amount donated through zakat. The study also highlights that zakat, which is given directly by individuals, plays a crucial role in welfare, especially in the absence of strong state-led social protection systems.

Most of the zakat is given outside of the government’s official zakat fund, which was set up in the 1980s. The survey found that only 2% of zakat givers use the state fund, as most people prefer to manage their own giving. Instead, zakat is often distributed directly to individuals or through mosques, schools, and some NGOs. Over half of the zakat recipients are women, particularly widows, who are seen as especially vulnerable.

The study underscores the importance of private religious giving in Pakistan, particularly for marginalized groups. It reveals that zakat is filling critical welfare gaps in the country, demonstrating the power of community support in addressing poverty and inequality.