Govt sets minimum nisab at Rs88,927 for Zakat deduction

• Under the Zakat and Ushr Ordinance 1980, no Zakat would be deducted in case a bank account has less than Rs88,927.
• Zakat will be deducted from saving accounts, profit and loss sharing accounts, and other similar accounts having a balance of Rs88,927.
• Those who do not want Zakat deduction from their accounts can submit a "Zakat exemption" form in their respective banks.

The State Bank of Pakistan (SBP) has fixed the Nisab for Zakat deduction on bank accounts at Rs88,927 for the ongoing year.

According to a statement issued by the Poverty Alleviation and Social Division Wednesday, Zakat will be deducted from saving accounts, profit and loss sharing accounts and other similar accounts having a balance of Rs88,927 or above, on the first of Ramazan.

Under the Zakat and Ushr Ordinance 1980, no Zakat would be deducted in case a bank account has less than Rs88,927, the statement added.

The first of Ramazan will likely fall on April 3 or 4, this year, subject to the appearance of the moon.

To be liable for Zakat – which is one of the five pillars of Islam – one's wealth must amount to more than a threshold figure, termed the "Nisab".

Those who do not want Zakat deduction from their accounts can submit a "Zakat exemption" form in their respective banks.