Zakat Calculator Pakistan: How to Calculate Zakat in PKR (2026)

By Sharif Hossain · Last reviewed 2026
This guide is written for Muslims in Pakistan. It covers both your personal religious zakat obligation and the state-collected bank deduction under the Zakat & Ushr Ordinance, 1980. Sources are listed at the end.

Calculating zakat in Pakistan involves something most other countries’ Muslims don’t deal with: the state automatically deducts 2.5% from your savings accounts on the 1st of Ramadan unless you’ve filed an exemption. This guide explains both the religious calculation and the legal-administrative one, and how they interact. There’s a free calculator pre-configured for PKR.

→ Jump to calculator

The Two Things You Need to Understand

In Pakistan, zakat has two layers that often get confused:

1. Religious zakat — the 2.5% obligation on all your qualifying wealth (cash, gold, business assets, etc.), payable annually by you to qualifying recipients.
2. State-collected zakat — the automatic 2.5% deduction made by banks on the 1st of Ramadan from savings, PLS, and similar accounts that exceed the government’s annual nisab threshold.

These are not the same thing. The bank deduction covers only one slice of your wealth (specific account types), at a specific moment (1st of Ramadan). Your personal religious zakat obligation covers all qualifying wealth — gold, business assets, current account balances, investments, foreign currency, and so on — calculated on your own zakat date.

Many Pakistanis assume the bank deduction satisfies their full zakat obligation. It doesn’t. If you have wealth beyond what the state deducted on, you still owe zakat on it.

State-Collected Zakat: The 1st of Ramadan Deduction

Under the Zakat & Ushr Ordinance, 1980, banks in Pakistan are legally required to deduct 2.5% zakat from eligible accounts on the 1st of Ramadan each year. The State Bank of Pakistan announces a “Bank Holiday” on that day specifically to process these deductions.

How it works in 2026

The Ministry of Poverty Alleviation and Social Safety announces a fresh nisab figure each year before Ramadan. For Ramadan 1447 AH (2026), the nisab was fixed at Rs 503,529, sharply higher than the previous year (Rs 179,689) due to rising gold and silver prices. Check the current year’s official notification before relying on a specific figure.

On 1st Ramadan, banks deduct 2.5% from these account types if they hold balances at or above the announced nisab:

• Savings accounts
• Profit and Loss Sharing (PLS) accounts
• Term deposits / Fixed deposits
• National Savings Certificates (NSCs), Defence Savings Certificates (DSCs)
• Other similar deposit instruments listed in the Ordinance’s First Schedule

Accounts not deducted:

• Current accounts (demand deposits) — these don’t generate profit, so they’re outside the schedule
• Foreign currency accounts
• Accounts with a valid CZ-50 exemption declaration on file
• Accounts of non-Muslims (with a written declaration)

An important detail many people miss: the bank deducts 2.5% of your full balance, not just the portion above nisab. If your savings account holds Rs 600,000 on 1st Ramadan and you haven’t filed an exemption, the bank deducts Rs 15,000 — not 2.5% of (Rs 600,000 − Rs 503,529).

Filing the CZ-50 Exemption

If you want to discharge your zakat obligation yourself rather than through state collection, you can file Form CZ-50 — an affidavit on non-judicial stamp paper (typically Rs 50), attested by a Notary Public or Oath Commissioner, declaring that you follow a recognized fiqh and prefer to pay zakat through your own channels.

Important points about CZ-50:

• Submission deadline: at least 30 days before 1st Ramadan (by mid-Sha’ban).
• Filed per bank: if you have accounts at multiple banks, you need to file at each one.
• Any recognized fiqh: following the Supreme Court’s 1999 ruling in Federation of Pakistan v. Miss Farzana Asar, all recognized fiqhs — including Hanafi (Fiqh Hanafia) and Shia (Fiqh Jafaria) — are entitled to file. Originally the exemption was treated as Shia-only; the Court expanded it.
• Religious obligation remains: filing CZ-50 doesn’t exempt you from religious zakat. It only opts you out of the bank’s automatic collection. You still owe zakat on your wealth above nisab.

Tax treatment of state-deducted zakat

Under Section 25 of the Zakat & Ushr Ordinance, zakat deducted at source by banks is fully deductible from your taxable income — no upper cap. This is intentional, to avoid double-burdening payers. Keep your bank’s annual zakat deduction certificate for your tax filing.

Calculating Your Personal Religious Zakat

Setting the state deduction aside, your personal zakat obligation works like this:

• Rate: 2.5% of net zakatable wealth
• Threshold (nisab): the value of 87.48g of gold or 612.36g of silver, whichever standard you follow
• Holding period: wealth must be continuously above nisab for one lunar year (~354 days)

Religious nisab vs. state nisab — they’re different figures

The government’s announced nisab (Rs 503,529 for 2026) is calculated using a specific formula tied to the official price of 612.36g of silver as set by the Ministry. Your personal religious nisab should be calculated using current market prices of gold or silver in your area, which may differ.

If you’re using silver nisab and the Ministry’s figure aligns with current market silver, you can use that number. If you want to follow your own scholar’s preferred calculation, work it out independently using BAJUS-equivalent local rates (in Pakistan, jewelry market rates from major associations like the All Pakistan Sarafa Gems and Jewellers Association are commonly cited).

Gold vs. silver nisab in Pakistan

Both positions exist, but silver nisab is more common because it sets a lower bar that catches more zakatable wealth. Many Pakistani scholars recommend silver. The government’s official nisab is based on silver too.

Common Pakistani Financial Assets and Zakat

Bank savings, PLS accounts, FDs

Zakatable. If the state already deducted at source on 1st Ramadan, you’ve effectively paid zakat on the balance that was in the account at that moment. But if you received income, gold, business profits, or had funds outside these accounts during the year, those need separate calculation.

Current accounts

Zakatable from a religious standpoint, even though the bank doesn’t auto-deduct. Many people transfer funds from savings to current accounts before Ramadan to avoid state collection — that’s legally permissible but doesn’t reduce your religious obligation. The wealth is still yours and still zakatable.

National Savings instruments (DSCs, SSCs, Behbood, Regular Income Certificates)

Zakatable at their accessible value. Defence Savings Certificates and Special Savings Certificates are typically deducted at source on 1st Ramadan if held above nisab. Behbood Savings Certificates have specific exemption rules — check with your bank.

Foreign currency accounts

Not deducted by the state, but zakatable from a religious standpoint. Convert your foreign currency holdings to PKR at the current rate for your calculation.

Prize Bonds

Zakatable at their face value. Prize bonds are essentially cash equivalents — they hold value and can be cashed in.

CDC / Stock Market Holdings

If held for short-term trading, the full market value is zakatable. If held for long-term dividends, contemporary scholars typically count only 25–30% of the share value (representing the zakatable portion of the underlying company’s assets) as a working approximation.

Gold and silver jewelry

Under the Hanafi position (followed by most Pakistanis), all gold and silver — including jewelry — is zakatable at current market value. Other madhabs differ. Follow the position your family’s scholar advises.

Real estate

Personal-use property (your home) is not zakatable. Land or property held as investment is zakatable at current market value.

Mobile wallet balances (JazzCash, Easypaisa, SadaPay, NayaPay)

Treat as cash. Whatever’s in your wallet on your zakat date counts toward zakatable wealth.

Cryptocurrency

The dominant contemporary view treats crypto as a tradable asset, making it zakatable at its market value (PKR equivalent) on your zakat date.

Use the Calculator

The calculator below is pre-set to PKR with silver nisab as default. Enter the current silver price per gram in PKR, then your assets and liabilities. Use this for your personal religious zakat calculation regardless of what the state collected on 1st Ramadan.

How Bank Deduction Affects Your Personal Calculation

If the state already deducted zakat from your savings account on 1st Ramadan, you don’t have to pay zakat again on the amount that was deducted from. But you do need to figure out the rest of your zakatable wealth.

Practical approach:

1. Calculate your total zakat obligation using the calculator above (everything you owe based on your full qualifying wealth).
2. Subtract the amount the state already collected from your savings/PLS/FD accounts.
3. The remainder is what you still need to give yourself, to recipients of your choice.

This is why many Pakistanis file CZ-50: it gives them control over where their zakat goes. The state collects into the Central Zakat Account at SBP and distributes through provincial and district committees. Filing CZ-50 lets you give directly to family members in need, students, local madrasas, Edhi, TCF (The Citizens Foundation), Saylani Welfare Trust, Alkhidmat, or other organizations of your choice.

Where to Pay Your Personal Zakat in Pakistan

Major options:

• Government Zakat system — what the state collects automatically. Distributed through provincial and district Zakat Committees, primarily to widows, orphans, persons with disabilities, and low-income families.
• Edhi Foundation — long-running humanitarian organization, accepts zakat with separate accounting.
• The Citizens Foundation (TCF) — primarily focused on educational projects; accepts zakat-eligible donations.
• Saylani Welfare Trust — large-scale food, education, and healthcare programs.
• Alkhidmat Foundation — diversified social services and disaster relief.
• Direct giving — to known qualifying individuals (relatives, neighbors, students) in your community.

For institutional giving, verify the organization distributes zakat to the eight Quranic categories of recipients (Surah At-Tawbah 9:60) and keeps zakat accounted separately from general donations.

Worked Example (in PKR)

Let’s say Ahmad in Karachi is calculating his religious zakat for the year. He uses silver nisab. Current silver price is Rs 270 per gram.

His nisab threshold:
612.36 × Rs 270 = Rs 165,337

His zakatable assets:

• Savings account: Rs 800,000 (state already deducted Rs 20,000 on 1 Ramadan)
• Current account: Rs 250,000
• Easypaisa wallet: Rs 12,000
• Gold jewelry (wife’s, ~3 tolas ≈ 35g of 22-carat): Rs 500,000
• Defence Savings Certificates: Rs 400,000
• Investment plot at market value: Rs 1,500,000
• Stocks held long-term: Rs 600,000 (he counts 25% as zakatable per his scholar’s advice = Rs 150,000)

Total zakatable assets: Rs 3,647,000

His liabilities:

• Outstanding credit card: Rs 80,000
• Next 12 months of car loan payments: Rs 360,000

Total deductions: Rs 440,000

Net zakatable wealth: Rs 3,647,000 − Rs 440,000 = Rs 3,207,000

This is well above nisab, so zakat is due.

Total zakat owed: Rs 3,207,000 × 2.5% = Rs 80,175

Already collected by state: Rs 20,000

Ahmad still needs to give: Rs 80,175 − Rs 20,000 = Rs 60,175

Common Mistakes Pakistanis Make with Zakat

• Assuming the bank deduction covers everything. It only covers savings/PLS/FD-type accounts. Gold, current accounts, business, real estate investments — all separate.
• Moving funds to current accounts and assuming no zakat is owed. Legally, no auto-deduction. Religiously, you still owe the full 2.5%.
• Forgetting jewelry under Hanafi practice. Most Pakistani families follow Hanafi. Gold jewelry counts at current market value.
• Using purchase price instead of current market value. Gold and real estate especially — they’ve appreciated significantly.
• Subtracting the full house loan balance. Only the next 12 months of long-term loan payments are deductible.
• Filing CZ-50 and thinking religious zakat is over. It only stops bank collection. You still owe zakat religiously and must give it yourself.
• Skipping the foreign currency account. Not deducted by banks, but still your wealth and still zakatable.

Sources and Scholarly Notes

This guide draws on:

• The Qur’an, particularly Surah At-Tawbah (9:60) on zakat recipients
• The Zakat & Ushr Ordinance, 1980 and the Zakat (Collection & Refund) Rules, 1981
• Federation of Pakistan v. Miss Farzana Asar, PLD SC 476 (1999) — the Supreme Court ruling on fiqh-neutral CZ-50 exemption
• State Bank of Pakistan notifications and Ministry of Poverty Alleviation announcements for current-year nisab
• The Hanafi fiqh tradition on jewelry inclusion and standard zakat positions
• Contemporary fatwa councils including AAOIFI and AMJA for modern instruments (crypto, stocks, retirement funds)

For your personal situation — especially involving business assets, inheritance, or unusual instruments — consult a qualified scholar or mufti from a recognized Pakistani institution rather than relying on a general guide.

Disclaimer: This guide is provided for general educational purposes. It is not a fatwa and is not legal advice. The author is not a scholar or lawyer. Pakistan’s zakat law is administered by the Ministry of Poverty Alleviation and Social Safety; verify current-year nisab and procedural details against official notifications.

Related Tools

• Global Zakat Calculator — main guide covering 9 currencies and full madhab context
• Prayer Times — daily salah times for any city in Pakistan
• Hijri Date Converter — convert between Islamic and Gregorian calendars
• Qibla Finder — find the direction of the Kaaba from Pakistan
• Ramadan Timer — countdown to suhoor and iftar
• Islamic Events Calendar — major Islamic dates for the current year

Frequently Asked Questions

Q: How much is the current zakat nisab in Pakistan?
A: For Ramadan 1447 AH (2026), the government fixed the nisab at Rs 503,529 for bank zakat deduction purposes. This is announced annually by the Ministry of Poverty Alleviation and Social Safety based on current silver prices. Your personal religious nisab uses current market prices of gold (87.48g) or silver (612.36g) — most scholars recommend silver.

Q: Does the bank’s automatic zakat deduction satisfy my full religious obligation?
A: No. The bank only deducts from specific account types (savings, PLS, term deposits) on 1st Ramadan. It doesn’t cover current accounts, foreign currency, gold, real estate investments, business assets, or wealth received later in the year. You owe religious zakat on all of these.

Q: What is CZ-50 and should I file it?
A: CZ-50 is an affidavit declaration filed with your bank to opt out of automatic zakat deduction at source. You file it if you want to discharge your zakat obligation yourself, to recipients of your choosing. You must still pay your full religious zakat — the form only stops bank collection, not the religious duty.

Q: I moved my money to a current account before Ramadan. Do I owe zakat?
A: Yes. The current account avoids the automatic bank deduction (only savings/PLS accounts are deducted), but the wealth is still yours and still religiously zakatable. The state collection and your religious obligation are different things.

Q: Is the bank’s zakat deduction tax-deductible?
A: Yes. Under Section 25 of the Zakat & Ushr Ordinance, zakat deducted at source is fully deductible from taxable income with no cap. Keep your bank’s annual zakat certificate for your tax filing.

Q: Can I give zakat to my parents or children?
A: No. You cannot give zakat to direct ascendants (parents, grandparents) or descendants (children, grandchildren) because you’re already obligated to support them. Siblings, aunts, uncles, cousins, and other relatives are permissible recipients if they qualify (i.e., they’re poor or in debt).

Q: Is zakat due on my house in Pakistan?
A: Personal-use property (your residence) is not zakatable. Land or property held as investment, intended to be sold at appreciation, is zakatable at current market value.

Q: I follow Fiqh Jafaria. Are my zakat rules different?
A: Shia (Ithna Ashari) fiqh has different positions on what’s zakatable — classical Shia jurisprudence applies wajib zakat to nine specific items (gold, silver, four kinds of grain, and three kinds of livestock), with khums as a separate obligation. Many contemporary Shia scholars extend application to general wealth. Consult a marja or qualified Shia scholar for your specific situation. You can file CZ-50 to opt out of state collection.