KARACHI – The State Bank of Pakistan (SBP) has fixed the Nisab for Zakat deduction on bank accounts at Rs39,198 for the current Islamic year.

According to a statement issued by the Ministry of Religious Affairs and Interfaith Harmony on Monday, Zakat will be deducted from saving accounts, profit and loss sharing accounts and other similar accounts having a balance of Rs39,198 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 Rs39,198, the statement added.

The first of Ramazan will be on May 17 or 18 this year, subject to 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.