Zakat, an annual mandatory payment on productive wealth and one of the five pillars of Islam, represents the largest non-state welfare system in the world. Despite its significance as a redistributive mechanism, little is known about its actual distributional impacts. The decentralised nature of zakat distribution in many contexts raises critical questions about whether it overcomes or reinforces social and economic exclusions.
This paper examines the distributional dynamics of zakat in Pakistan, which provides a useful case for understanding non-state welfare provision in a Muslim-majority country with predominately decentralised, individualised zakat distribution. Drawing on a novel nationally representative survey of 7,500 Sunni Muslims and employing conjoint survey experiments, supplemented by qualitative data and data from over 118,000 recipients of the Punjab state zakat fund, we assess patterns of zakat distribution based on gender and ethnicity. Three main findings emerge. First, zakat is widespread and makes up a substantial part of social assistance in Pakistan, surpassing the scale of Pakistan’s largest state-run social protection programme. Second, despite being marginalised in Pakistan and less visible in public spaces, women make up an overwhelming majority of zakat recipients, suggesting that zakat payers are reacting to real inequalities and needs. Third, there is no conclusive evidence of systematic ethnic bias in decentralised zakat distribution. These findings highlight the need to understand zakat as a major redistributive institution and underscore its implications for state-based social welfare provision, development actors, and equity across Muslim-majority countries. They also demonstrate the significance of non-state social welfare for redistribution, suggesting the need for greater research on similar practices in other contexts.
Related publications:
- Factsheet: Zakat Payments in Pakistan Exceed State Social Protection
- Blog: Pakistanis are paying over 1.7 billion GBP in zakat every year—mostly to women
