The State Bank of Pakistan (SBP) has announced that all Banks will observe a “Bank Holiday” on the first day of Ramadan. The date will fall either on February 19 or February 20, depending on the sighting of the moon for the holy month.
In an official notification, the SBP said Banks across the country will remain closed for public dealings on 1st Ramadan-ul-Mubarak 1447 A.H. The holiday is observed every year for the deduction of Zakat from eligible accounts.
The announcement applies to all Banks, development finance institutions (DFIs), and microfinance banks (MFBs). Customers will not be able to carry out transactions at branches on that day.
However, the SBP clarified that employees of Banks and other financial institutions will still attend offices. The day will be treated as a normal working day for staff, except for public dealings.
Earlier, the government also announced the Zakat Nisab for the year. The Ministry of Poverty Alleviation and Social Safety set the threshold at Rs503,529. This means no Zakat will be deducted if the balance in an account is below this amount.
The ministry’s notification stated that Zakat will only be deducted from accounts with balances above the set Nisab. This step is meant to protect small depositors from automatic deductions.
Meanwhile, the Central Ruet-e-Hilal Committee will meet in Peshawar to sight the Ramadan moon. The meeting will be chaired by Maulana Syed Muhammad Abdul Khabeer Azad. Zonal committees will also hold sessions in federal and provincial capitals at the same time.
The final decision on the start of Ramadan will depend on the official moon-sighting announcement. Based on that decision, Banks will observe the holiday on the confirmed first day of the holy month.
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The annual Bank Holiday is part of Pakistan’s Zakat system. It allows financial institutions to carry out required deductions in an organized manner before normal transactions resume.
