📌 Nisab in 2026 (Gold-based): 7.5 tolas of gold ≈ Rs. 34,65,000. If your total zakatable wealth exceeds this amount and one lunar year has passed, Zakat is obligatory.
What Is Zakat?
Zakat is one of the Five Pillars of Islam — an obligatory annual charity paid by every Muslim who possesses wealth above the nisab threshold for a complete lunar year (hawl). It is set at 2.5% of total zakatable wealth and is intended to purify wealth and support those in need.
Nisab — The Minimum Threshold for Zakat
Nisab is the minimum amount of wealth a Muslim must possess before Zakat becomes obligatory. There are two standards:
- Gold Nisab: 7.5 tolas (87.48 grams) of gold
- Silver Nisab: 52.5 tolas (612.36 grams) of silver
What Assets Are Subject to Zakat?
- Gold and silver jewellery (above personal use thresholds)
- Cash in hand, bank accounts, and savings
- Business inventory and trade goods
- Money owed to you (receivables)
- Investment portfolio value
Zakat is not due on: your home, personal car, furniture, clothing, tools of trade, or debts you owe others.
How to Calculate Zakat — Step by Step
- Add up all zakatable assets: gold + silver + cash + savings + business stock + receivables
- Subtract any debts or liabilities you owe
- If the net amount is above nisab and held for one lunar year — Zakat is due
- Pay 2.5% of the net zakatable wealth
Frequently Asked Questions
Is Zakat deductible from income tax in Pakistan?
Yes. Compulsory Zakat deducted under the Zakat and Ushr Ordinance 1980 is fully deductible from your taxable salary income under FBR rules, effectively reducing your income tax liability.
When is Zakat paid in Pakistan?
Zakat is most commonly calculated and paid during Ramadan. However, it may be paid any time during the year once your hawl (one lunar year of possession above nisab) is complete.
Does the government deduct Zakat automatically in Pakistan?
Yes. Under the Zakat and Ushr Ordinance 1980, Zakat on bank savings accounts (at 2.5%) is automatically deducted by banks on the first of Ramadan each year, unless you submit a Zakat exemption affidavit.
Is Zakat due on a gold loan or gold held as collateral?
According to most scholars, Zakat is due on gold you own, even if pledged as collateral, as long as you still legally own it and it exceeds the nisab threshold.