The recent revelations of massive embezzlement in the Zakat and Ushr fund in Islamabad have once again highlighted the deep-rooted corruption and gross mismanagement within government departments responsible for distributing essential aid. These funds, intended to provide critical financial support to the most vulnerable segments of society, have been systematically misappropriated by officials entrusted with managing them. The inquiry committee, formed in October 2024, uncovered shocking irregularities, including the formation of 185 illegal local zakat committees and the misappropriation of millions of rupees.
Chief Commissioner Mohammad Ali Randhawa has called for immediate action, recommending the suspension of the Islamabad Zakat and Ushr Committee and local committees, along with the appointment of an administrator to oversee operations. Furthermore, he has urged that the matter be referred to the Federal Investigation Agency (FIA) for a thorough probe. The inquiry report also emphasized the need for a special audit to determine the exact amount misappropriated, underlining the gravity of the corruption.
This is not the first time that the Zakat fund has been embroiled in controversy. Previous reports have consistently highlighted cases of embezzlement, yet accountability has remained elusive. Despite numerous investigations and allegations, prosecutions have been rare, and the recovery of stolen funds even rarer. The lack of administrative oversight and the absence of stringent accountability measures have created an environment where corruption can thrive with impunity.
The consequences of such corruption are devastating for countless deserving individuals who depend on Zakat for survival. These funds are supposed to provide financial assistance to widows, orphans, the disabled, and those living below the poverty line. Instead, millions of rupees have been siphoned off, depriving the needy of essential support. The mismanagement and theft of these funds are a betrayal of the fundamental principles of Zakat, one of the five pillars of Islam, aimed at promoting social welfare and equity.
The scale of corruption in government departments responsible for managing Zakat funds is indicative of broader systemic failures. Weak internal controls, poor governance, and a lack of transparency have allowed officials to manipulate records and form illegal committees to divert funds. The absence of effective monitoring mechanisms has further compounded the problem, making it difficult to detect and prevent fraudulent activities.
Zakat collection in Pakistan is a significant undertaking, with billions of rupees collected annually. These funds are primarily sourced through deductions from bank accounts and voluntary contributions. The Zakat and Ushr Ordinance, promulgated in 1980 under General Muhammad Zia-ul-Haq, established a formal mechanism for the collection and distribution of these funds. The collected Zakat is disbursed across provinces to support various welfare initiatives, including health care, education, and social assistance programs.
Statistics show a steady increase in Zakat collection over the years, reflecting the growing financial participation of the public. A report issued by the Institute of Policy Studies in March 2023 estimated the annual zakat potential in Pakistan at over Rs 2,743 billion, approximately 4% of the GDP. This amount surpasses 28.6% of the government’s 2022-23 budget. In 2017-18, the Ministry of Religious Affairs and Interfaith Harmony collected Rs 7,377.68 million in Zakat, while in 2000-01, collections were Rs 4.4 billion.
Despite these impressive figures, the disbursement of funds has been plagued by inefficiencies and corruption. The allocation of funds varies by province, with larger provinces like Punjab and Sindh receiving a significant share. However, the impact on poverty alleviation has been minimal due to widespread mismanagement and the diversion of funds.
The plight of those who depend on Zakat cannot be overstated. For many, these funds are a lifeline, providing essential support in times of need. According to a report by the World Bank, poverty in Pakistan was over 37% in 2023. The estimated potential Zakat in Pakistan would be enough to provide Rs 100,000 to over 27 million individuals. Yet, the misappropriation of funds has left deserving individuals without access to the financial assistance they desperately need.
The government’s failure to address corruption in the Zakat and Ushr system is a damning indictment of its administrative capabilities. Despite numerous reports and investigations, the lack of decisive action has allowed corruption to persist. The recent findings by the inquiry committee should serve as a wake-up call for the authorities to take immediate and comprehensive measures to reform the system.
To restore public confidence and ensure the proper management of Zakat funds, several steps must be taken. First and foremost, all officials involved in the misappropriation of funds must be held accountable and prosecuted to the full extent of the law. Recovering the stolen funds should be a top priority to mitigate the financial losses suffered by the Zakat system.
Additionally, the government must implement robust internal controls and monitoring mechanisms to prevent future corruption. The use of technology can play a crucial role in enhancing transparency and accountability. A centralized digital platform for tracking Zakat collection and disbursement would provide real-time visibility and reduce the risk of fraudulent activities.
Furthermore, the appointment of competent and honest administrators to oversee the distribution of Zakat funds is essential. These administrators should be held accountable for ensuring that funds are allocated fairly and transparently. Regular audits and independent assessments should be conducted to identify and address any irregularities promptly.
The government must also engage with civil society organizations and community leaders to strengthen the Zakat distribution network. Their involvement can help ensure that funds reach the intended beneficiaries and that the system operates in a transparent and accountable manner.
The recent revelations of corruption in the Zakat and Ushr system are a stark reminder of the urgent need for reform. The government must act decisively to address the administrative failures and systemic corruption that have plagued the system for far too long. Deserving individuals who rely on Zakat for their survival cannot afford to be let down any longer. It is time for the authorities to fulfill their moral and legal obligations to protect and manage these vital funds responsibly and transparently.
The views expressed in this article are the author’s own and do not necessarily reflect Coverpage’s editorial stance.
