‘Pakistanis give over $2bn in Zakat annually’

ISLAMABAD: Pakistanis are known for their freehand approach towards charitable causes, with several organisations operating in the country while being solely funded by public donations.

However, the true extent of the charity has been revealed via a survey, according to which, as many as 50 million Pakistanis gave Rs619 billion — amounting to $2.19 billion — in 2024 in terms of Zakat.

Zakat is one of the five central pillars of Islam and refers to the amount that each Muslim is obligated to give to the needy each year, provided that he qualifies for it. Zakat is typically calculated at 2.5% of the total amount exceeding the Nisab threshold.

The survey, conducted via computer-assisted telephone interviews in 2024 as a result of a partnership between the International Centre for Tax and Development (ICTD) and the Lahore University of Management Sciences (LUMS), reveals that the average contributions during this time were around Rs15,000.

Interestingly, the study shows that the estimated Zakat amount exceeded that distributed by the Benazir Income Support Programme (BISP), which stood at Rs592 billion and also the Rs577.4 billion federal excise duty (FED) collected by the government.

Also, the Zakat amount also surpassed the official development aid received by the country in 2022, amounting to Rs376bn.

Additionally, Pakistanis overwhelmingly preferred to give their own zakat — instead of relying on the state-administered compulsory collection system — with more than two-thirds giving it directly to individuals.

“Approximately one-tenth of Zakat givers give to mosques and school, with a smaller proportion giving to NGOs,” adds the report.