Pakistan could mobilise Rs1.2 trillion from Zakat, CSR, philanthropy for social sector

Pakistan could raise up to Rs1.2 trillion for its social sector from alternative sources such as Zakat, corporate social responsibility funding and philanthropy, Profit by Pakistan Today reported after a policy discussion. The figure is roughly what the four provincial ADPs used in earlier years. The Sustainable Development Policy Institute, with Unicef and Germany's GIZ, held the session on Monday and urged more openness and public trust to tap these funds.

A LUMS study presented there put yearly Zakat payments at Rs620 billion, but State Bank data recorded only Rs11.77 billion deducted through bank channels. SDPI's Dr Sajid Amin Javed argued the gap shows the need for sturdier institutions and transparent Zakat collection and spending. Bilal Azhar Kayani, Minister of State for Finance, termed federal grants taken from provinces under Article 164 a temporary measure still being debated in the NFC forum.

Kayani also called the missing Provincial Finance Commissions an incomplete task and welcomed the CSR legislation passed recently by the National Assembly. Unicef's Sharmeela Rasool wants such funding predictable, fair and open, with measurable gains for children. Sadaf Zulfiqar, Unicef's chief of social policy, cited a 2023 study estimating annual corporate philanthropy at about $300 million, though weak trust and fragmented coordination limit its potential. This was the opening policy meeting for the Financing the Future programme, which falls under the Public Finance for Children framework of the agency.