In Pakistan, the system of compulsory collection and distribution of Zakat and Ushr began in 1980,[1] with an ordinance decreed by General Muhammad Zia-ul-Haq calling for a 2.5% annual deduction from personal bank accounts on the first day of Ramadan, with the revenue to be used for poverty relief.
[2][3] Zakāt (Arabic: زكاة "that which purifies"[4]), is the giving of a fixed portion of one's wealth to needy people, and is one of the Five Pillars of Islam.
[8]) According to the provincial Government of Punjab, the collection of Zakat and Ushr and maintenance of relevant accounts is administered by the federal "Ministry of Religious Affairs (MORA).
[7] In Punjab the zakat reportedly goes to programmes such as: "Guzara Allowances", Educational Stipend to the Students of Educational Institutions and religious schools (Deeni Madaris), Health Care, Rehabilitation, "Marriage of Musthaiq (beneficiaries) Girls and Stipends to Musthaiq students" of technical institutions.
17 of 1980 ... the real lives and economic conditions of millions of Pakistani citizens have been completely unchanged, but a great number of socioreligious and political problems have arisen from state involvement in zakat administration.
The change from an act of voluntary piety to compulsory government collection, meant some Sunni Muslims felt they had not met their religious obligation by see the tax.