ISLAMABAD: All public and private sector banks across Pakistan are set to deduct Zakat from eligible savings and profit-and-loss sharing (PLS) accounts on the first day of Ramazan 2026, in accordance with federal government directives.
Under the annual Zakat and Ushr Ordinance, the government announces the minimum threshold, or nisab, after assessing relevant financial indicators.
The nisab represents the minimum amount of savings a person must possess to be liable for Zakat deduction.
Last year, the nisab was fixed at Rs179,689, with banks deducting 2.5 per cent Zakat from account balances exceeding that amount.
The updated nisab for 2026 is expected to be announced by the government ahead of Ramazan.
Accounts with balances below the prescribed threshold will remain exempt from deduction.
These include savings and PLS accounts that do not meet the minimum required amount.
According to the expected lunar calendar, the first day of Ramazan is likely to fall on Feb 19 or 20, 2026, depending on the sighting of the moon.
If the month of Shaban completes 29 days, Ramazan will begin on Feb 19; if it lasts 30 days, the holy month will commence on Feb 20.
Banks typically carry out Zakat deductions at the start of Ramazan each year in compliance with official notifications.
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