The Federal Government of Pakistan has announced the Nisab threshold for Zakat deduction for the Islamic year 1446-47 A.H., corresponding to 2026. The Ministry of Poverty Alleviation and Social Safety issued an official notification on February 16, 2026, setting the new Nisab limit at PKR 503,529.
Following this announcement, the State Bank of Pakistan (SBP) issued a circular on February 17, 2026, instructing all banks to implement the new threshold immediately. According to the directive, banks will not deduct Zakat from accounts with balances below PKR 503,529. This rule applies to Savings Bank Accounts, Profit and Loss Sharing Accounts, and similar account types.
If an account’s credit balance is equal to or exceeds PKR 503,529 on the specified deduction date, banks are required to deduct Zakat at the source. The deduction date is set as the first day of Ramazan-ul-Mubarak, 1446 A.H., which is expected to fall on February 19 or 20, 2026, depending on the moon sighting.
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The SBP has emphasized strict compliance by all Presidents and Chief Executives of Banks, Development Finance Institutions (DFIs), and Microfinance Banks (MFBs). Banks must deposit the deducted Zakat amounts promptly into the Central Zakat Account (No. CZ-08) maintained with the SBP. Additionally, banks are required to submit a copy of the return in Form CZ-08 (A & B) to the Ministry of Poverty Alleviation and Social Safety immediately after depositing the funds.
This updated Nisab threshold aims to ensure that Zakat deductions are aligned with current economic conditions and provide clarity to account holders regarding their liability for Zakat payments through banking channels.
