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Philanthropy in Pakistan

In: Philanthropy in the Muslim World

Author

Listed:
  • Muhammad Ali

Abstract

Philanthropy is pervasive in Pakistan as one survey indicates that 98% of Pakistanis do charity in one form or the other. A number of features distinguish philanthropy in Pakistan. First, it is predominantly faith based. Bulk of philanthropy occurs in the form of Zakat which is a mandatory charity in Islam. Second, majority of people prefer donating personally and to individuals. Third, religious institutions receive bulk of donations that go to organizations. Pakistan is one of the few other Muslim countries to institutionalize the system of Zakat at state level. Started in 1980 this system allows the government to deduct Zakat from bank accounts and distribute among deserving individuals. The official Zakat system has achieved little success primarily due to lack of trust on the government. Other policy issues that hinder the promotion of philanthropy in the country include insufficient incentives for donations and fragmented registration and reporting requirements for the nonprofit sector.

Suggested Citation

  • Muhammad Ali, 2023. "Philanthropy in Pakistan," Chapters, in: Shariq A. Siddiqui & David A. Campbell (ed.), Philanthropy in the Muslim World, chapter 16, pages 271-287, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:22055_16
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