Islamabad: The Government of Pakistan has officially fixed the Zakat nisab for 2026 at Rs. 503,529, meaning automatic Zakat deduction will apply only to bank accounts whose balances meet or exceed this amount on the first day of Ramazan.
The decision was announced through a notification issued by the Ministry of Poverty Alleviation and Social Safety. Under the new threshold, no Zakat will be deducted if the balance in a savings account remains below Rs. 503,529 at the start of the holy month.
Deduction Date and Applicable Accounts
Zakat will be deducted from eligible deposits on the first day of Ramazan, expected on February 19, 2026, subject to moon sighting.
The deduction applies to:
- Savings bank accounts
- Profit and loss sharing (PLS) accounts
- Similar deposit accounts
Banks have been instructed to deduct Zakat automatically and transfer the reminder amount immediately to the Central Zakat Account maintained with the State Bank of Pakistan.
180% Increase From Last Year
The new nisab represents a sharp increase compared to last year’s threshold of Rs. 179,689, marking an approximate 180% rise.
Officials attribute the jump primarily to the significant increase in global and domestic prices of precious metals, particularly gold and silver, which are used to determine the nisab value under Islamic principles.
Impact on Account Holders
The higher nisab is expected to substantially reduce the number of accounts qualifying for automatic Zakat deduction.
Pakistan’s banking system currently holds more than 177 million accounts across:
- Commercial banks
- Microfinance institutions
- Fintech platforms
With the revised threshold, millions of smaller savings accounts will fall below the deduction limit.
Compliance Instructions for Banks
Financial institutions have been directed to:
- Ensure strict compliance with deduction rules
- Transfer collected Zakat to the Central Zakat Account immediately
- Submit official returns after depositing funds
The government says these measures aim to improve transparency and proper documentation of Zakat collections.
What It Means for Citizens
For depositors, the new threshold means:
- Individuals with savings below Rs. 503,529 will not face automatic deductions
- Only higher-balance accounts will contribute through the banking system
- More people may choose voluntary Zakat payments instead
The revised nisab will come into effect nationwide at the beginning of Ramazan 2026.
Final Thought
The new Zakat nisab of Rs. 503,529 protects small savers while placing responsibility on wealthier account holders. Although automatic deductions will decrease, the core purpose of Zakat — supporting the needy — now depends even more on voluntary and conscious giving alongside the government system.