SBP Announces Bank Holiday on 1st Ramadan 1447 AH for Zakat Deduction

The State Bank of Pakistan (SBP) has announced that all banks will observe a public holiday on the 1st of Ramadan 1447 AH for the purpose of Zakat deduction.

According to the official notification, all commercial banks, Development Finance Institutions (DFIs), and Microfinance Banks (MFBs) across Pakistan will remain closed for public dealings on that day. However, bank employees will report to work as usual to complete internal procedures related to Zakat deduction.

The annual bank holiday is observed to facilitate the automatic deduction of Zakat from eligible savings accounts, in line with Islamic financial principles and government regulations. The process ensures that Zakat is deducted at the start of Ramadan from accounts that meet the required Nisab threshold.

While customers will not be able to carry out over-the-counter transactions on the 1st of Ramadan, banking operations will continue internally to ensure compliance and smooth processing across the country’s financial institutions.

The central bank has advised customers to plan their financial activities in advance to avoid any inconvenience due to the temporary suspension of public dealings.

The Zakat deduction at source is a routine practice carried out every year at the beginning of Ramadan as part of Pakistan’s Islamic financial framework.