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.
Pakistanis paying over $2 billion in zakat annually, women majority recipients — study
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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
Pakistan PM orders accelerated privatization of power sector to tackle losses
- Tenders to be issued for privatization of three major electricity distribution firms, PMO says
- Sharif says Pakistan to develop battery energy storage through public-private partnerships
ISLAMABAD: Pakistan’s prime minister on Monday directed the government to speed up privatization of state-owned power companies and improve electricity infrastructure nationwide, as authorities try to address deep-rooted losses and inefficiencies in the energy sector that have weighed on the economy and public finances.
Pakistan’s electricity system has long struggled with financial distress caused by a combination of factors including theft of power, inefficient collection of bills, high costs of generating electricity and a large burden of unpaid obligations known as “circular debt.” In the first quarter of the current financial year, government-owned distribution companies recorded losses of about Rs171 billion ($611 million) due to poor bill recovery and operational inefficiencies, official documents show. Circular debt in the broader power sector stood at around Rs1.66 trillion ($5.9 billion) in mid-2025, a sharp decline from past peaks but still a major fiscal drain.
Efforts to contain these losses have been a focus of Pakistan’s economic reform program with the International Monetary Fund, which has urged structural changes in the energy sector as part of financing conditions. Previous government initiatives have included signing a $4.5 billion financing facility with local banks to ease power sector debt and reducing retail electricity tariffs to support economic recovery.
“Electricity sector privatization and market-based competition is the sustainable solution to the country’s energy problems,” Prime Minister Shehbaz Sharif said at a meeting reviewing the roadmap for power sector reforms, according to a statement from the prime minister’s office.
The meeting reviewed progress on privatization and infrastructure projects. Officials said tenders for modernizing one of Pakistan’s oldest operational hubs, Rohri Railway Station, will be issued soon and that the Ghazi Barotha to Faisalabad transmission line, designed to improve long-distance transmission of electricity, is in the initial approval stages. While not all power-sector decisions were detailed publicly, the government emphasized expanding private sector participation and completing priority projects to strengthen the electricity grid.
In another key development, the prime minister endorsed plans to begin work on a battery energy storage system with participation from private investors to help manage fluctuations in supply and demand, particularly as renewable energy sources such as solar and wind take a growing role in generation. Officials said the concept clearance for the storage system has been approved and feasibility studies are underway.
Government briefing documents also outlined steps toward shifting some electricity plants from imported coal to locally mined Thar coal, where a railway line expansion is underway to support transport of fuel, potentially lowering costs and import dependence in the long term.
State authorities also pledged to address safety by converting unmanned railway crossings to staffed ones and to strengthen food safety inspections at stations, underscoring broader infrastructure and service improvements connected to energy and transport priorities.
