Pakistan has the potential to mobilise up to Rs1.2 trillion for the social sector through alternative financing sources, including Zakat, corporate social responsibility (CSR), philanthropy and other religiously motivated contributions, according to discussions at a high-level policy forum.
The potential amount is roughly equivalent to the resources utilised through the four provinces’ Annual Development Plans in previous years, highlighting the scope for alternative funding streams to support social-sector needs.
A study cited during the discussion estimated that Pakistanis pay around Rs620 billion annually in Zakat, while only about Rs11.77 billion is collected through formal bank deductions, pointing to a significant gap in the mobilisation of charitable resources.
The policy discussion, organised by the Sustainable Development Policy Institute (SDPI) in collaboration with UNICEF Pakistan and Germany’s GIZ, also highlighted the potential of CSR, public-private partnerships and impact investment.
Minister of State for Finance Bilal Azhar Kayani called for greater transparency, improved coordination between federal and provincial development spending, and stronger fiscal decentralisation to improve service delivery at the grassroots level.
Participants stressed that alternative financing should complement not replace public-sector funding, with greater accountability and measurable outcomes to ensure resources are effectively directed towards health, education, nutrition, social protection and children’s development.
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