Zakat Deduction Update: Banks to Suspend Public Transactions Today

Published On: February 19, 2026

Zakat Deduction Update: Banks to Suspend Public Transactions Today

An important update has emerged regarding Zakat deduction and banking operations in Pakistan as Ramadan begins.

Banks across the country will not conduct public transactions today due to the annual Zakat deduction process from eligible accounts. This step is taken every year under the government’s Zakat system.

New Zakat Nisab Announced for This Year

The Administrator General Zakat has set the Zakat nisab for the current year at Rs. 535,529.

This threshold is significantly higher compared to last year — almost three times the previous amount.

What Does This Mean?

If the balance in your savings account is equal to or above Rs. 535,529 on the deduction date, Zakat will be automatically deducted.

If your balance is below this threshold, no Zakat will be deducted from your account.

Which Accounts Will Face Zakat Deduction?

Zakat at the rate of 2.5% (deducted annually) will be applied to:

Savings accounts
Profit and Loss Sharing (PLS) accounts

The deduction is made under the government’s centralized Zakat deduction mechanism.

It is important to note that current accounts are generally exempt from automatic deduction.

Why Are Banks Closed for Public Dealing Today?

Banks have suspended public transactions today to:

Process Zakat deductions smoothly
Update account records
Avoid transaction confusion during deduction

Customers will not be able to perform over-the-counter transactions on this day. However, ATM and digital banking services may remain operational depending on the bank.

Ramadan Office Timings for Pakistan Stock Exchange

Alongside the Zakat update, the Ramadan working hours for the Pakistan Stock Exchange have also been released.

Ramadan Office Hours (PSX)

Monday to Thursday: 9:00 AM to 3:00 PM
Friday: 9:00 AM to 2:00 PM

Investors and traders are advised to plan their activities according to these revised timings.

What Account Holders Should Do

If you hold a savings or PLS account:

✔ Check your balance before deduction date
✔ Ensure exemption affidavit (if applicable) is already submitted
✔ Verify deduction amount through bank statement
✔ Contact your bank immediately in case of discrepancies

Understanding the Zakat deduction process helps avoid confusion and unnecessary panic.

Why This Update Is Important During Ramadan

Zakat is a key pillar of Islam and plays a major role in wealth distribution. The annual deduction system ensures that eligible contributions are collected and distributed under government-managed welfare programs.

With the nisab significantly increased this year, many account holders who previously faced deduction may now fall below the threshold.

This change could impact:

Savings planning
Investment decisions
Short-term fund management

FAQs – Zakat Deduction 2026

What is the Zakat nisab for this year?

The nisab is set at Rs. 535,529.

What percentage is deducted?

2.5% of the eligible balance.

Are all bank accounts affected?

Only savings and PLS accounts meeting the nisab threshold.

Are banks completely closed?

Banks are closed for public dealing today, but digital services may remain active.

Zakat Deduction Update: Banks to Suspend Public Transactions Today