Pakistanis are renowned for their spontaneous approach to charitable giving, with numerous organizations in the country operating solely on public donations. However, a survey has revealed the true extent of this generosity, indicating that 50 million Pakistanis donated Rs619 billion — equivalent to $2.19 billion — in Zakat in 2024.
Zakat is one of the five essential pillars of Islam, referring to the amount each eligible Muslim is obligated to donate to those in need annually. Typically, Zakat is calculated as 2.5% of the total amount exceeding the Nisab threshold. — ICTD The survey, conducted through computer-assisted telephone interviews in 2024 as a collaboration between the International Centre for Tax and Development (ICTD) and the Lahore University of Management Sciences (LUMS), shows that the average Zakat contribution during this period was approximately Rs15,000. — ICTD Notably, the study indicates that the estimated Zakat amount surpassed the distribution of the Benazir Income Support Programme (BISP), which was Rs592 billion, as well as the Rs577.4 billion in federal excise duty (FED) collected by the government. Furthermore, the Zakat amount exceeded the official development aid received by the country in 2022, which amounted to Rs376 billion. Additionally, Pakistanis overwhelmingly preferred to distribute their Zakat directly, rather than relying on the state-administered compulsory collection system, with over two-thirds giving it directly to individuals. “Approximately one-tenth of Zakat givers donate to mosques and schools, with a smaller proportion contributing to NGOs,” the report adds.
