Pakistanis paying over $2 billion in zakat annually, women majority recipients — study

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Updated 30 March 2025
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Pakistanis paying over $2 billion in zakat annually, women majority recipients — study

Pakistanis paying over $2 billion in zakat annually, women majority recipients — study
  • More money reaches people in need through zakat than via Pakistan’s Benazir Income Support Program
  • Joint study by UK-based ICTD and Pakistan’s LUMS finds most people prefer to bypass the state zakat fund

ISLAMABAD: Pakistanis are paying more than £1.7 billion ($2.19 billion) in zakat annually, with the vast majority of recipients being women, according to a study released this week by researchers from the UK-based International Center for Tax and Development (ICTD) and Lahore University of Management Sciences.
Zakat is a form of obligatory almsgiving in Islam and one of its five central pillars. It requires Muslims who meet a certain wealth threshold to donate a fixed portion, usually 2.5 percent of their savings and assets annually, to those in need.
The findings of the study are based on a 2024 survey of 7,500 Sunni Pakistanis, shedding new light on the scale and social role of zakat, according to a post shared on the ICTD website.
“In a newly published factsheet, we estimate that self-identified Sunnis in Pakistan pay over 619 billion rupees (GBP 1.7 billion) in zakat annually,” the study’s authors wrote. “In 2024, the average zakat giver paid about 15,000 rupees (about GBP 43) with over 50 million Pakistanis contributing.”
“Our data suggests that every year, more money is distributed to people in need in Pakistan through zakat than through the largest state-led cash transfer program, the Benazir Income Support Programme,” they added.
Pakistan’s Benazir Income Support Programme (BISP) has a 2024/2025 budget of Rs598.7 billion ($2.16 billion), while zakat contributions, largely unregulated and directly disbursed by individuals, exceed that amount.
The federal excise duty and even official development aid received by Pakistan in recent years fall short of annual zakat totals, according to the study.
The research also reveals that Pakistan’s official zakat fund, established in the 1980s for compulsory collection and disbursed through state-appointed councils, plays a negligible role.
“Most Pakistanis prefer to bypass the state fund — unsurprising in a context where individuals have low trust in the government,” the authors said. “The national state fund collects only a fiftieth of what we estimate to be contributed annually, while survey respondents overwhelmingly noted that they prefer to manage their own zakat giving. In our survey, we find that less than 2 percent of zakat givers are going through the state fund.”
The study said most zakat is given directly to individuals, or via mosques, schools, and, to a lesser extent, NGOs, bypassing formal state channels.
More than half of the survey respondents reported giving zakat exclusively to female recipients, with a particular preference for widows, who were perceived as especially economically vulnerable.
The study highlights that private religious giving is filling critical welfare gaps in Pakistan, particularly for marginalized groups, in the absence of robust state social protection systems.


Pakistan unveils first-ever policy to regulate digital assets in line with FATF guidelines

Pakistan unveils first-ever policy to regulate digital assets in line with FATF guidelines
Updated 10 April 2025
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Pakistan unveils first-ever policy to regulate digital assets in line with FATF guidelines

Pakistan unveils first-ever policy to regulate digital assets in line with FATF guidelines
  • New policy will set rules for the operation of digital currencies and related companies in Pakistan
  • Pakistan Crypto Council was established in March to create legal framework for digital currencies

ISLAMABAD: Pakistan has introduced its first-ever policy framework to regulate virtual assets and service providers, aligning with compliance and financial integrity guidelines of the global Financial Action Task Force (FATF), the country’s top investigation agency said on Thursday.
The new policy, created by a special government group under the Anti-Money Laundering (AML) and Counter Terrorism Financing (CTF) authority, is meant to set rules for how digital money like cryptocurrencies and the companies that deal in it should operate in Pakistan.
The move follows the establishment of the Pakistan Crypto Council last month to create a legal framework to create a legal framework for cryptocurrency trading in a bid to lure international investment. 
Cryptocurrencies including bitcoin are not officially regulated in Pakistan but are also not illegal or banned. As of Jan. 16, 2021, the State Bank of Pakistan has not authorized any individuals or organizations to carry out the sale, purchase, exchange, and investment of virtual currencies, coins, and tokens.
“Pakistan has formulated its first-ever comprehensive policy framework for the regulation of Virtual Assets and Virtual Asset Service Providers,” the Federal Investigation Agency (FIA) said in a statement. 
The policy will be scrutinized by stakeholders and legislative proceedings before being implemented in phases from next year.
The policy aims to curb money laundering, terrorism financing, financial instability and the potentials of blockchain-based finance and also provide space for innovation and develop institutional expertise. 
“This is a paradigm shift in how Pakistan views digital finance,” FIA Director Sumera Azam was quoted in the statement as saying. “The policy proposal seeks to strike a historic balance between technological advancement and national security imperatives.”
She added that the framework aligned with FATF Recommendation 15 on compliance and financial integrity.
FATF Recommendation 15, titled “New Technologies,” ensures that AML and CFT frameworks are adaptable to emerging financial technologies, including virtual assets and virtual asset service providers.


Pakistan markets rebound as Trump makes tariff U-turn

Pakistan markets rebound as Trump makes tariff U-turn
Updated 5 min 23 sec ago
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Pakistan markets rebound as Trump makes tariff U-turn

Pakistan markets rebound as Trump makes tariff U-turn
  • US President Donald Trump has announced a 90-day delay in tariffs
  • KSE-100 Index surged by over 2,036 points following the announcement

KARACHI: Pakistan’s stock market bounced back on Thursday after US President Donald Trump announced a 90-day delay in tariffs, analysts said. 
The KSE-100 Index surged by over 2,036 points (1.75 percent), following the announcement.
On Wednesday (April 9), the KSE-100 Index had dropped 5 percent, leading to a 45-minute halt in trading.
Zafar Moti, CEO of Zafar Moti Capital Securities, said the decision helped calm investors, while Ahsan Mehanti, Managing Director and CEO of Arif Habib Group, said the pause in tariffs was seen as good news by investors.
“The Pakistan Stock Exchange closed on a positive note,” Topline Securities said in its daily market review.
“This upward trajectory was fueled by a strong rebound in US and other international equity markets, with the index rallying as much as 3,331 points during intraday trading.”


No extension in deadline to deport illegal foreigners from Pakistan — minister

No extension in deadline to deport illegal foreigners from Pakistan — minister
Updated 10 April 2025
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No extension in deadline to deport illegal foreigners from Pakistan — minister

No extension in deadline to deport illegal foreigners from Pakistan — minister
  • Over 850,000 people repatriated since a deportation drive was launched in late 2023
  • Pakistan has expelled over 8,000 Afghan nationals in the past week, UNHRC says

ISLAMABAD: State Minister for Interior Talal Chaudhry said on Thursday the government was not considering extending the deadline for illegal foreigners to leave the country, with over 850,000 people repatriated since a deportation drive was launched in late 2023. 
Earlier this year, Pakistan’s interior ministry asked all “illegal foreigners” and holders of Afghan Citizen Cards — a document launched in 2017 to grant temporary legal status to Afghan refugees — to leave the country before Mar. 31, warning that they would otherwise be deported from April 1. The move is part of a larger repatriation drive of foreign citizens that began in November 2023.
Pakistan has expelled more than 8,000 Afghan nationals in the past week in a fresh repatriation drive after the expiry of a March 31 deadline, the UNHCR said on Tuesday. 
“The first and foremost thing I want to share with you is that there is no deadline extension [to deport illegal foreigners] being considered or given, nor will there be any extension,” Chaudhry said at a press conference, saying 857,157 people had been repatriated since 2023, including those residing in Pakistan illegally and ACC holders.
“Particularly in the case of Afghan nationals, this decision had to be made after considering some ground realities,” he said, accusing Afghan nations of being involved in militant attacks, narcotics trade and other crimes.
Last year was the deadliest year in almost a decade in Pakistan, with more than 1,600 people killed in militant attacks, nearly half of them security forces personnel, according to the Islamabad-based Center for Research and Security Studies. 
Pakistan accuses the Taliban government of failing to root out militants sheltering on Afghan soil, a charge Kabul denies, saying it does not allow its territory to be used by militants against Pakistan. It also says Afghan nationals are not involved in terrorism and other crimes in Pakistan and Islamabad’s security and criminality issues are a domestic problem.


Pakistan distances itself from extradition to India of 2008 Mumbai attacks’ suspect

Pakistan distances itself from extradition to India of 2008 Mumbai attacks’ suspect
Updated 10 April 2025
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Pakistan distances itself from extradition to India of 2008 Mumbai attacks’ suspect

Pakistan distances itself from extradition to India of 2008 Mumbai attacks’ suspect
  • Foreign office says Tahawwur Hussain Rana was Canadian, had not renewed Pakistani origin documents in decades
  • 64-year-old is accused of being in LeT group, planning four-day Mumbai siege in which 160 people were killed in 2008

ISLAMABAD: Pakistan on Thursday distanced itself from the issue of the extradition to India of Tahawwur Hussain Rana, a suspect in the 2008 Mumbai terror attacks, saying he was a Canadian national who had not renewed his Pakistani origin documents in the past two decades.
New Delhi accuses Rana, 64, of being a member of the Pakistan-based Lashkar-e-Taiba (LeT), or the Army of the Pure, a group blamed by India and the United States for the four-day Mumbai siege in which 160 people, including Americans and other foreigners, were killed in 2008. Rana is accused of assisting his friend David Coleman Headley who was sentenced to 35 years in a US prison after pleading guilty to aiding LeT militants and scouting target locations in Mumbai.
Pakistan has always denied official complicity in the Mumbai attacks.
“On the Tahawwur Rana issue, we have conveyed our position regarding his Canadian nationality,” Foreign Office spokesperson Shafqat Ali Khan said in reply to a question during a weekly media briefing.
 “As far as our record indicates, he did not even apply for renewal for his Pakistani origin documents for the last two decades …I reiterate the position that we will give further updates in due course.”
In February, US President Donald Trump announced the extradition of Rana, calling him “one of the very evil people in the world.”
The US Supreme Court rejected Rana’s plea in February to remain in the country, where he was serving a sentence for planning another LeT-linked attack. 
According to a Reuters report, Rana, a former Pakistan Army doctor, immigrated to Canada in 1997 before moving to Chicago to set up businesses. He was arrested by US authorities in 2009, a year after the Mumbai attacks. 
In 2013, a US court acquitted him of conspiring in the Mumbai attacks but sentenced him to 14 years for plotting an attack on the Jyllands-Posten newspaper office in Denmark, which had published blasphemous caricatures of the Holy Prophet (Peace Be Upon Him).
Media has reported that Rana and Headley knew each other from boarding school days in Pakistan. Headley testified as a witness at Rana’s trial, claiming he used Rana’s immigration services business as a cover to scout targets in India. 
Rana admitted to visiting Mumbai before the attacks and staying at the luxury Taj Mahal Palace Hotel, which became the focal point of the deadly siege. However, he denied any involvement in the conspiracy.


Pakistan to seek fresh bids for national airline, says adviser

Pakistan to seek fresh bids for national airline, says adviser
Updated 10 April 2025
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Pakistan to seek fresh bids for national airline, says adviser

Pakistan to seek fresh bids for national airline, says adviser
  • Pakistan has been looking to offload a 51-100% stake in debt-ridden PIA
  • Attempt to privatize PIA last year fell flat when Pakistan got only one bid

ISLAMABAD: The Pakistani government will seek fresh expressions of interest for the sale of Pakistan International Airlines later this month, a government adviser said on Thursday, two days after PIA reported its first annual profit in over two decades.
Pakistan has been looking to offload a 51-100 percent stake in debt-ridden PIA, part of an effort to raise funds and reform cash-bleeding state-owned enterprises as envisaged under a $7 billion International Monetary Fund program.
However, Islamabad’s attempt to privatize PIA last year fell flat when it received only a single offer, well below the asking price of more than $300 million.
Pakistan has offloaded almost all of the national carrier’s legacy debt and shifted it to government books after bidders raised issues that had led to the failed attempt, according to the privatization ministry.
“In our last attempt to privatise PIA, pre-qualified bidders had some issues with taxation and the balance sheet. Those are taken care of now,” Muhammad Ali, government adviser on privatization, told Reuters. “We plan to publish the new Expression of Interest (EoI) by the last week of April 2025,” he said.
The government plans to complete the airline’s privatization before the end of this year.
“We are also revising the pre-qualification criteria,” he said, adding that the reference price could also be revised keeping in view the latest accounts and changes in the balance sheet.
Prime Minister Shehbaz Sharif last year announced plans to sell all SOEs.
The adviser said that the process to privatise power distribution companies had also started, terming it a “high priority transaction.”
He said some companies previously due to be sold in the second phase were being pushed into the first phase.
The adviser said the government had appointed Jones Lang LaSalle to advise on exploring different sales options for the PIA-owned Roosevelt hotel building in Manhattan, New York. They include selling the building as it is or opting for a joint venture with a top tier developer, which has the potential to generate proceeds five times higher, Ali said.