Hi All,

I am an overseas Pakistani (born in the UK). When I last went to Pakistan, I opened up the Allied Monthly Income Scheme in Allied Bank (which is 10.20% interest rate). I also have a PLS Savings account into which the monthly profit goes at the end of each month.

I want to know about Zakat. Will they just take the zakat out on 1st of Ramadan? If they do is there any way for me to recover it by submitting the zakaat declaration after it has been taken out? Obviously I am living in the UK so cannot visit the branch. When I asked them about this issue when I was in Pakistan they were all just like 'no no there wont be any deduction of zakaat' but really it seemed like they were just saying that. This is the problem in pakistan; there is a lot of misinformation. Like now i am contacting (or trying) to email allied bank in karachi and one guy says one thing and another says another thing. sometimes they say no zakaat for overseas pakistanis. then they say you must submit the declaration. so which is it? Any advice MOST APPRECIATED.

Also, lastly. If they do deduct zakaat will it be 2.5% of the 10 lac rupees i deposited into the saving certificate (Allied Monthly Income Scheme) or will it be 2.5% of the profit earned for the year?

Thanking you!

bro if you got 10G to leave into an account surely your not poor enough to be wanting zakaat exemptions....

I'm just joking....i have no idea how any of this Pakistani banking works.

I dont know it works though, but my take on it is that its a flawed system. Every years, billions of Rs. are taken out of the banking system just to get around this zakat reduction from the accounts.

Why dont you try foreign currency account? Do they cut zakat in those accounts as well?

I don't think they cut zakat if your account is in foreign currency and the profit paid in foreign currency.

Anyone else know about the zakat issue? I spoke to the branch just now and they said they would check if I have submitted the affadavit (see if its on file) and if not he would create one for me. He is a relative of mine. heh, isnt that good. I thought I must sign the affadavit... but after all this is Pakistan, I guess.

Anyways, who is responsible for zakat deduction? The actual branch do this work or is it head office, karachi? ever heard of a zakat refund if the bank deduct by mistake?

u pay zakat AND earn interest??