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Disbursement of Zakah Funds

The prime objective of the system is to assist the needy, the indigent and the poor with a view to providing them with socio-economic relief but even more to rehabilitate them preferably through institutionalised arrangements. Subsistence allowance is to be provided in unavoidable cases only where rehabilitation is not possible and the mustahiq has no other means of subsistence. The mustahiq orphan, the widow, the handicapped and the disabled are given priority.

Presently, about 0.613 million widows, 0.220 million orphans, 0.304 million disabled, totalling 1,137 million mustahiqin are being assisted through subsistence allowance. An amount of Rs. 9541 million has been disbursed during the last 15 years. The number of mustahiqin makes 1.4 percent of the total population of the country [Appendix 1].


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Over the same period of 15 years, Rs 1,365 million were set aside for educational stipends from primary to university level and more than 0.5 million mustahiq students were provided assistance.

In the case of health sector, Rs 590 million have been utilized during the last 15 years. In addition, institutions of national level and teaching hospitals are receiving funds directly from the central zakah fund. An amount of Rs 385 million has been provided to such institutions. About 1.1 million mustaheqin have been provided medical assistance.

Some Rs 1485 million were allocated from central zakah fund for 1.2 million students of deeni madaris (religions institutions).

A sum of Rs 303 million was disbursed among the mustahiqin from central zakah fund through social welfare institutions for acquiring various skills. After completion of training the mustahiqin are provided lumpsum grants for tools to start their own business. It    is    thus   primarily    a    rehabilitation     programme    which enables the needy to earn their livelihood, [Appendix 2].

Expenditure heads                                                   Rs in million

 

1.   Subsistence allowance                                                      1680

2.   Educational institutions                                                      504

3.   Health institutions (DHQ)                                                   168

4.   Deeni madaris (religions institutions)                                    224

5.          National level health institutions and        

      teaching hospitals                                                            223.50

6.   Social welfare institutions                                                 112

7.    Other                                                                            112

 

Total                                                                              3023.50

The amount earmarked for each head of expenditure during the current year (1995-96) is almost double what was allocated during the previous years. Different subsistance allowance is paid to each category of need. The rates for each head may be seen in Appendix 3.

To strengthen zakah system and to make it a more effective tool of poverty alleviation, a few suggestions are made as follows:

  • The organisational structure of zakah administration should be managed on permanent basis and should not be changed with the change of political structure in the country. A regular cadre of zakah employees should be created in the federal services. Personnel belonging to this service group should be men of character, well-versed in the shari'ah teachings. Special course should be organised for their training. People belonging to this group should have an aptitude to serve the humanity.
  • General misconception about zakah collection should be clarified. Discrimination among the persons and the zakatable assets should be eliminated. Presently, assets in the shape of stocks in trade, foreign currency accounts and current accounts are part of the second schedule.

These should be transferred to the first schedule and zakah should be realised on these assets on compulsory basis. Exemptions already granted to various type of bonds and certificates should be withdrawn. Special efforts should be made for optimum collection of ushr. Personal and institutional exemptions should be restricted only to the non-Muslims.

Disbursement of zakah fund is a very serious matter which needs special attention. Correct data about the mustahiqin should be collected from all over the country. Disbursements of zakah funds should be made objective-oriented. Rehabilitation of the mustahiqin should be given priority. Tamleek, having its own merits, should not be ruled out, as suggested by certain quarters. Disbursement procedures should be simplified. Short-term and long-term programmes for the rehabilitation of the mustahiqin should be chalked out.

Provision of subsistence allowance is essential to meet household expenses of mustahiqin. It should be organised on monthly basis, with uninterrupted flow of funds as irregular and insufficient supply of funds jeopardises the whole scheme of assistance.

Appendix 1

NUMBER OF MUSTAHIQIN-E-ZAKAH

(31 DECEMBER 1993)

 

Widows

Orphans

Disabled

Total

Punjab

309,955

51,610

114,902

476,467

Sindh

190,963

124,824

129,840

445,627

NWFP

88,378

29,700

46,894

164,972

Balochistan

22,522

12,665

11,932

47,119

Islamabad Capital Territory

1,777

510

359

2,646

Total

613,595

219,309

303,927

1,136,831

Mustahiqin-E-Zakah

POPULATION

(1981 CENSUS)

PERCENTAGE

Punjab

47,292,000

1.0%

Sindh

19,029,000

2.3%

NWFP

11,061,000

1.5%

Balochistan

4,332,000

1.1%

Islamabad Capital Territory

340,000

0.8%

 

82,054,000 (total)

1.4% (Average)

Appendix 2

Disbursements from the Central Zakah Fund Through institutions

(Rs. in million)

ZAKAH YEAR

GENERAL/

SOCIAL

DEENI MADARIS

EDUCATION

MEI

1400-01 H

13.879

0.044

1.384

7.941

1401-02 H

22.639

3.402

2.271

12.601

1402-03 H

39.110

3.042

0.650

4.279

1403-04 H

23.457

26.737

4.653

13.964

1404-05 H

82.974

72.092

33.369

31.251

1405-06 H

88.450

82.149

21.526

19.524

1406-07 H

126.964

114.080

24.276

8.365

1407-08 H

131.329

148.467

441.139

16.786

1408-09 H

54.409

61.128

20.497

18.829

1409-10 H

148.628

58.531

64.190

21.020

1410-11 H

107.650

96.344

25.839

15.991

1411-12 H

169.985

151.525

77.839

35.531

1412-13 H

158.975

134.158

76.446

27.425

1413-14 H

190.08

96.00

66.44

37.92

1414-15 H

127.057

317.643

127.057

31.764

TOTAL

1485.586

1365.342

590.579

303.191

Appendix 3

Existing Approved Rates for Assistance Out of zakah fund

I           GUZARA (SUBSISTENCE)

ALLOWANCE                           Rs / month                         Rs / year

i)          Per Mustahiq                                                        225.00

ii)         Per dependent mustahiq                                            50.00

 

II          REHABILITATION GRANT PER                 

MUSTAHIQ (One liiw grant)                                3000.00

 

III         JAHEZ (DOWRY) GRANT PER

MUSTAHIQ GIRL                                             5000.00

 

IV         EDUCATIONAL STIPENDS PER

 MUSTAHIQ

i)           Primary to Middle                               50.00          600.00

ii)                        High School

iii)        General/Science/Professional Colleges 75.00               900.00

iv)        University                                           250.00      3000.00

v)          Engineering/Medical Colleges                500.00      6000.00

and Engineering University                    583.00      7000.00

vi)         Computer Science                                383.00      7000.00 

 

V          DEENI (RELIGIONS) EDUCATIONAL

STIPENDS BOARDER

i)           Hifz-o-Nazira                                       100.00            

ii)         Mauqoof Aleh                                     125.00            

iii)        Daura Hadith                                       175.00            

 

VI         SOCIAL WELFARE STIPENDS

Per Mustahiq during training                  125.00      1500.00

 

VII        HEALTH CARE PER MUSTAHIQ                                         

i)          Outdoor Patient                                   200.00            

ii)         Indoor Patient     500.00    

 

Source: Poverty Alleviation in Pakistan: Present Scenario and Future Strategy, Mohibul Haq Sahibzada. Republished with permission.