Islamabad, Apr 3, 2025: A recent study has uncovered that 50 million individuals in Pakistan donated an astounding Rs. 619 billion ($2.19 billion) in Zakat during 2024. This amount exceeds both the disbursements under the Benazir Income Support Program (BISP), which stood at Rs. 592 billion, and the federal excise duty revenue, recorded at Rs. 577.4 billion.
The research was conducted by scholars from the UK-based International Center for Tax and Development (ICTD) in collaboration with Lahore University of Management Sciences (LUMS).
Findings indicate that the average Zakat contribution per donor was nearly Rs. 15,000.
The report also sheds light on the preference of Pakistanis regarding Zakat distribution. Over two-thirds of the population opts to allocate Zakat funds directly to individuals rather than relying on state-managed collection mechanisms.
Around 10 percent of donors prefer contributing to mosques and educational institutions, whereas a comparatively smaller segment supports non-governmental organizations (NGOs).
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Another striking revelation from the study is that the total Zakat contributions in 2024 even surpassed Pakistan’s official development aid received in 2022, which was Rs. 376 billion.
This signifies the immense role of charitable giving in supporting socio-economic welfare across the country.
The report underscores the significance of voluntary donations in bridging financial gaps and aiding the underprivileged.
Given the substantial amount donated annually, experts emphasize the need for more structured and transparent mechanisms to ensure effective utilization of these funds for the welfare of the needy.
As charitable giving continues to play a vital role in Pakistan’s socio-economic landscape, policymakers and philanthropic organizations may find it beneficial to develop more efficient frameworks for managing and distributing Zakat, thereby maximizing its impact on poverty alleviation and community development.
