How to Calculate Zakat on Gold, Cash, Stocks and Mutual Funds in Pakistan (2026)

The arithmetic of Zakat can look simple: add eligible wealth, subtract allowable liabilities, and apply 2.5%. The difficult part is deciding what belongs in the total—especially when wealth is split among jewellery, bank accounts, PSX shares and mutual funds.

This guide gives a practical worksheet and explains where recognised scholarly approaches differ. It is educational, not a fatwa. If your school of thought, investment structure or liabilities make the answer unclear, take the completed worksheet to a qualified scholar.

Quick formula: If your net Zakatable wealth equals or exceeds your applicable nisab on your Zakat date, the common lunar-year calculation is net Zakatable wealth × 2.5%.

Pakistan's 2026 Zakat nisab: what PKR 503,529 means

For Zakat year 1446–47 AH, Pakistan notified a nisab of PKR 503,529 for deduction at source from specified savings, profit-and-loss-sharing and similar bank accounts on the first day of Ramadan 1447 AH. The State Bank instructed banks to apply the government notification.

That figure has a narrow administrative purpose. It answers:

Will Zakat be automatically deducted from this specified bank account under Pakistan's collection system?

It does not by itself answer:

How much personal Zakat do I owe across all my cash, gold, shares, fund units, business assets and liabilities?

A person could have PKR 300,000 in one bank account—below the automatic-deduction threshold—but also own gold and investments that put total Zakatable wealth above nisab. Conversely, treatment can vary with the assets owned, the selected gold or silver benchmark, debts and school of thought.

Keep the two calculations separate: bank deduction and personal Zakat liability.

Nisab: gold, silver and mixed wealth

Nisab is the minimum qualifying wealth before Zakat becomes due. Commonly cited classical measures are approximately:

• Gold nisab: 87.48 grams, often described in Pakistan as 7.5 tolas.
• Silver nisab: 612.36 grams, often described as 52.5 tolas.

To calculate a current rupee threshold:

Gold nisab in PKR = price of one gram of pure gold × 87.48
Silver nisab in PKR = price of one gram of pure silver × 612.36

Gold and silver thresholds can differ greatly in rupee terms. Scholars and organisations differ on which benchmark to apply, particularly for mixed assets such as cash plus investments. Pakistan's annual bank-deduction notification is an administrative threshold and should not be casually substituted for your chosen personal method.

Use a reliable same-day bullion price and record whether it is per gram, per tola and for what purity — see How to Invest in Gold in Pakistan if you need help sourcing a realistic rate rather than a marketing price. Ask a scholar which nisab applies to your asset mix.

Choose one annual Zakat date

The common approach is to choose a date in the Islamic lunar calendar and review all Zakatable wealth on that date each year. Many people choose the first or last day of Ramadan because it is memorable, but Zakat is not restricted to Ramadan.

If wealth remains at or above nisab for a complete lunar year, Zakat is generally due. Detailed treatment of wealth moving above and below nisab, newly acquired assets and income during the year differs among schools. A consistent date is administratively useful, but it does not override those rulings.

Do not postpone an amount already due merely to move the calculation into Ramadan.

The practical Zakat worksheet

On your chosen date, list:

A. Cash and near-cash

• Cash at home and in wallets.
• Current and savings account balances.
• Mobile-wallet balances.
• Foreign currency converted at a reasonable current PKR rate.
• Term deposits and National Savings balances, subject to accessibility and product treatment.
• Money owed to you that is likely to be recovered, according to your scholarly method.

B. Gold and silver

• Gold bars and coins.
• Zakatable gold jewellery under your school of thought.
• Silver bullion and Zakatable silver items.

C. Investments

• PSX shares.
• Mutual-fund and ETF units.
• Tradable Sukuk or other securities, under the relevant method.
• Investment cash waiting in a brokerage or AMC account.
• Declared dividends, redemptions or sale proceeds not already counted elsewhere.

D. Business assets, if applicable

• Saleable inventory.
• Business cash.
• Recoverable trade receivables.
• Other current assets included by the method you follow.

E. Allowable near-term liabilities

Scholarly approaches differ on deductible debt. Some allow liabilities due immediately or within the coming year; others are more restrictive. Do not subtract the full balance of a long mortgage or vehicle financing without advice.

Then calculate:

Net Zakatable wealth = A + B + C + D − allowable E

If net wealth is at least the applicable nisab:
Zakat due = net Zakatable wealth × 2.5%

Take care not to double-count. If a dividend has already reached your bank account, count it as cash—not again as a separate receivable.

How to calculate Zakat on cash and bank balances

Cash is normally the simplest category. Add balances that you beneficially own and can claim, regardless of whether they sit in one account or ten.

Example:

If this is the person's only Zakatable wealth, it exceeds the 2026 Pakistan bank-deduction nisab—but the applicable personal nisab should still follow the scholarly method selected. At 2.5%, before allowable liabilities:

PKR 810,000 × 2.5% = PKR 20,250

What if the bank already deducted Zakat?

Record the exact amount and date. Do not simply apply 2.5% to the remaining balance and forget the deduction. Calculate the full personal position, then ask a scholar whether and how the source deduction credits the liability under your method.

The bank sees an account balance. It does not see cash at home, gold, shares, other banks or eligible debts.

How to calculate Zakat on gold

First separate actual gold weight from stones, non-gold fittings and making charges. Zakat valuation generally concerns the gold value, not the retail price paid for design work.

Step 1: find net gold weight

Use the invoice or a reliable jeweller's assessment. One Pakistani tola is approximately 11.664 grams.

Step 2: account for purity

Pure-gold equivalent can be estimated as:

Pure gold grams = item weight × karat ÷ 24

For 100 grams of 22K gold:

100 × 22 ÷ 24 = 91.67 grams pure-gold equivalent

Alternatively, use a same-day market rate for that exact karat if it is reliable and consistently applied.

Step 3: value it on the Zakat date

Gold value = net weight × applicable per-gram rate

Do not use the purchase price from five years ago. Zakat valuation normally looks at current value on the calculation date.

Is Zakat due on jewellery worn personally?

This is a major area of juristic difference. The Hanafi position generally includes gold and silver jewellery when the relevant conditions are met; other schools may exempt jewellery in normal personal use within customary limits. Pakistanis should not hide this difference inside a calculator default.

An ethical calculator should ask the user which treatment they follow or show both results, with a prompt to consult a scholar.

For buying and valuation risks, see How to Invest in Gold in Pakistan. That article covers the product; this one covers the Zakat worksheet.

How to calculate Zakat on PSX stocks

Shares require more judgment because the investor owns an interest in a company containing cash, receivables, inventory, property, machinery and liabilities.

Two broad situations are commonly distinguished.

Shares bought for short-term trading

If shares are held as trading inventory for resale, a common approach is to include their full market value on the Zakat date:

Zakatable trading shares = shares owned × market price on Zakat date

Add cash in the brokerage account and unsettled amounts you beneficially own, without double-counting.

Shares held as long-term investments

For shares held mainly for dividends and long-term ownership, many contemporary methods seek the investor's proportionate share of the company's Zakatable assets—such as cash, receivables and inventory—rather than automatically charging 2.5% on property, plant and equipment.

Conceptually:

Zakatable amount per share
= company's net Zakatable assets ÷ shares outstanding

Investor's Zakatable amount
= amount per share × shares owned

This requires reliable financial-statement data and a defined standard. Published "Zakat per share" figures from a credible Shariah adviser or company can help, but confirm the date, accounting basis and whether the company has already paid Zakat on shareholders' behalf.

Where the detailed figure is unavailable, scholars offer practical alternatives, including use of market value or an estimated Zakatable proportion. Because those alternatives can produce materially different results, AsaasIQ should not silently choose one.

Dividends

A dividend held as cash on the Zakat date is included with cash, on top of whatever it already contributed to your total return for investment-planning purposes. Avoid counting it both in your bank balance and as a stock receivable.

A simple trader example

Suppose a trader holds PSX shares worth PKR 900,000, plus PKR 100,000 cash in the brokerage account, and follows the full-market-value trading method:

Portfolio amount = PKR 900,000 + PKR 100,000
                 = PKR 1,000,000

Zakat at 2.5% = PKR 25,000

This example does not apply automatically to a long-term shareholder using the net-Zakatable-assets method.

How to calculate Zakat on mutual funds and ETFs

A fund unit represents a proportionate interest in a pooled portfolio. The correct calculation therefore depends on what the fund owns and which scholarly method is used.

Equity funds

For units held for trading, the full redeemable or market value may be used under a trading-assets approach. For long-term investment, a look-through calculation may use the fund's proportion of Zakatable underlying company assets.

Ask the AMC whether it publishes a Zakat per unit, Zakat ratio or Shariah report for the relevant date. Do not assume that "Islamic fund" means the AMC has already paid the investor's personal Zakat — Islamic Mutual Funds vs Conventional Funds in Pakistan explains what Shariah compliance does and does not cover.

Money market and income funds

These may hold cash, placements, Sukuk and receivables. Much of the portfolio may be Zakatable, but the exact treatment and any deductions depend on the instrument and methodology. Use an AMC's current Shariah guidance where available.

Gold and commodity funds

Owning a gold-fund unit is not the same as personally holding a bar. Use the fund's structure, underlying holdings and scholarly guidance; do not multiply the unit count by a retail jewellery price.

Avoid three common fund errors

1. Counting both the fund's market value and its underlying assets.
2. Deducting management fees that have already been reflected in NAV.
3. Assuming a fund name settles the Zakat method.

For fund pricing, read How Mutual Fund NAV Works. For product selection, use Best Mutual Funds in Pakistan: How to Choose separately from this religious calculation.

A combined Pakistan investment example

Assume, purely for illustration, a person has:

Zakat = PKR 2,600,000 × 2.5%
      = PKR 65,000

If the person had already suffered a valid PKR 10,000 bank deduction that can be credited under the chosen method, the remaining amount might be PKR 55,000. Confirm that credit rather than assuming it.

Gregorian versus lunar-year rate

The familiar 2.5% rate is associated with a lunar-year cycle. A lunar year is shorter than a Gregorian year. Some institutional calculations using a full solar year apply approximately 2.5775% to account for that difference.

Most households can avoid confusion by keeping one consistent Hijri Zakat date and using 2.5%. If you calculate strictly on a Gregorian annual cycle, obtain guidance before changing the rate.

Liabilities: what can be deducted?

Do not let a calculator subtract every debt entered. Consider:

• Is the amount genuinely owed?
• Is it due now or within the relevant near-term period?
• Is it already represented elsewhere in the calculation?
• Does the selected school allow this deduction?
• For instalment financing, is only the near-term instalment deductible or more?

An unpaid credit-card bill due now is not analytically the same as twenty years of future home-financing instalments. The treatment is a scholarly question, not a software preference.

Bank deduction, CZ-50 and personal payment

Pakistan's system deducts Zakat at source from specified accounts meeting the notified threshold on the first day of Ramadan. Current accounts are generally treated differently from savings/PLS accounts under the statutory schedule.

People seeking exemption under an applicable school-of-thought declaration commonly use Form CZ-50, subject to legal requirements and the bank's deadline. This is a legal declaration, not a last-minute switch to avoid charity. Obtain the current form and instructions directly from the bank; do not rely on a social-media template.

Filing an exemption form does not erase a religious obligation. It changes source deduction under the Pakistani system; the person remains responsible for calculation and eligible payment according to the position followed.

Who can receive Zakat?

Eligibility is a separate subject with important rules. Do not treat every donation, mosque expense, family transfer, tax payment or crowdfunding campaign as automatically satisfying Zakat.

Verify the recipient category, ownership transfer and your chosen scholarly requirements. If using an organisation, review its Zakat policy, segregation of funds, administrative-cost treatment, distribution timing and reporting.

What a trustworthy Zakat calculator should do

This topic is well suited to a future interactive tool because it does not require licensed market data when users enter values themselves. A trustworthy version should:

• Keep all figures in the browser by default; do not store sensitive wealth data.
• Let users enter cash, gold by grams/tolas and purity, investments, receivables and liabilities.
• Offer user-entered gold/silver rates with a visible valuation date.
• Separate the government bank-deduction threshold from personal nisab.
• Ask whether shares are trading or long-term holdings.
• Allow a published Zakat-per-share or Zakat-per-unit input.
• Show alternative jewellery and debt treatments rather than silently issuing a ruling.
• Deduct recorded source Zakat only after user confirmation.
• Produce a printable worksheet, assumptions and calculation trail.

Until then, the worksheet above works the same way by hand. Do not label any output "final Zakat due" when unresolved choices remain — treat it as an estimate under stated assumptions.

Frequently asked questions

What is the Zakat nisab in Pakistan for 2026?

Pakistan notified PKR 503,529 for automatic deduction from specified bank accounts for Zakat year 1446–47 AH. Personal nisab can require a separate gold/silver and total-wealth assessment.

How much Zakat is due on PKR 1 million?

If the full PKR 1 million is Zakatable, the person meets the applicable nisab and no allowable liability changes the amount, 2.5% is PKR 25,000.

Is Zakat due on gold jewellery?

Schools differ. The Hanafi position generally includes qualifying gold and silver jewellery; other schools may exempt normal personal-use jewellery. Follow qualified guidance rather than a hidden calculator default.

Do I pay Zakat on PSX shares?

Generally, shares can create a Zakat obligation, but the amount may depend on trading intent versus long-term holding and the company's Zakatable assets. A credible per-share figure is preferable when using a look-through method.

Do Islamic mutual funds deduct Zakat automatically?

Do not assume so. Check the AMC's current offering document, Shariah report and Zakat guidance. Shariah-compliant investing and payment of each unit holder's personal Zakat are different questions.

Can I subtract loans before calculating Zakat?

Possibly, but the allowable amount differs by scholarly method. Near-term amounts due are often treated differently from the entire outstanding balance of long financing.

If my bank balance is below PKR 503,529, do I owe no Zakat?

Not necessarily. The threshold governs specified bank-account deduction. Your combined gold, cash, investments and other Zakatable assets may still exceed the applicable personal nisab.

Final checklist

• Choose and record one annual Hijri calculation date.
• Select the nisab method with qualified guidance.
• Obtain same-date gold, silver, share and fund values.
• Separate traders' holdings from long-term investments.
• Add cash once; avoid dividend and redemption double-counting.
• Deduct only liabilities allowed by the method followed.
• Record Zakat already deducted or paid.
• Save the worksheet and assumptions for next year.
• Pay eligible recipients promptly once the amount is due.

Bottom line

A useful Zakat calculation must show its assumptions. The honest result is not always one instant number: gold jewellery, long-term shares, fund holdings and debt deductions can require a choice among recognised scholarly approaches.

Start with a complete inventory, keep Pakistan's bank-deduction threshold separate from personal nisab, and take unresolved items to a qualified scholar. Good records turn next year's calculation from guesswork into a repeatable process.