State Bank of Pakistan (SBP) has declared a nationwide bank holiday on 1st Ramazan for zakat deduction arrangements.

According to an official statement, all commercial banks, development finance institutions, and microfinance banks will remain closed for public dealing on the first day of Ramazan. However, bank employees will report to work as usual, and the day will be treated as a normal working day for internal operations.

The central bank explained that the holiday is necessary to ensure smooth and timely deduction of zakat from eligible savings accounts. Each year, at the start of Ramazan, zakat is automatically deducted from savings accounts that meet the required minimum balance under Islamic principles.

Bank staff will use the day to complete administrative tasks related to zakat deductions and other internal processes. This arrangement helps prevent technical issues and ensures the banking system functions smoothly without disruption.

Although bank branches will be closed to the public, digital banking services are expected to remain available. Customers can continue using ATMs, online banking, and mobile banking services for transactions during the holiday.

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The SBP advised customers to plan their financial activities in advance, especially if they need to withdraw cash, pay bills, or complete important transactions. Customers are encouraged to complete urgent banking tasks before or after the holiday to avoid inconvenience.

The central bank said this annual measure is part of routine arrangements to ensure zakat deductions are carried out efficiently and in accordance with Islamic requirements.