Govt eyes organised zakat system; can it become a game changer in Bangladesh’s poverty fight?

The government's plan to bring zakat management under a more organised and coordinated system has sparked optimism among economists and Islamic scholars, who say the initiative could become a powerful tool in reducing poverty in Bangladesh if implemented effectively.

Prime Minister Tarique Rahman has recently directed the authorities concerned to make the country's zakat management system more organised and effective so that the funds contribute more meaningfully to poverty alleviation.

Speaking at a programme held at the state guest house Jamuna last week in honour of Islamic scholars and orphans, the Prime Minister said the government is considering ways to make zakat distribution more targeted and efficient.

"I would like to share with you my plan regarding zakat management in the country," he said, noting that many wealthy individuals distribute zakat on their own initiative, while some channel their contributions through the government's Zakat Board.

Various studies estimate that zakat distribution in Bangladesh may exceed Tk20,000–25,000 crore annually, with some estimates suggesting an even higher amount. 

However, in the absence of a structured and coordinated system, it remains unclear how effectively these funds contribute to reducing poverty.

The Prime Minister said Islamic teachings encourage distributing zakat in ways that help recipients become self-reliant so they do not need to depend on such assistance repeatedly.

"If zakat can be distributed through a planned system, it could play a transformative role in eliminating poverty," Tarique said.

The government is exploring ways to make zakat management more goal-oriented, he added.

He said Bangladesh currently has around 40 million families. If poor and extremely poor households are properly identified and about five lakh families are provided Tk1 lakh each annually in phases, many of them may become financially independent.

With such a targeted approach, he expressed optimism that zakat could significantly contribute to reducing poverty within the next 10 to 15 years.

To implement the plan, the government is considering restructuring the existing Zakat Board under the Ministry of Religious Affairs by involving leading Islamic scholars, economists, and government officials.

Officials believe such a model could eventually position Bangladesh as an example for other Muslim-majority countries in utilising zakat for poverty alleviation.

Tarique Rahman also instructed the Religious Affairs Minister to take steps to ensure that zakat management becomes more disciplined and effective.

Prime Minister's Additional Press Secretary Atikur Rahman Ruman said the Prime Minister recently held a meeting on zakat management where As-Sunnah Foundation Chairman Shaykh Ahmadullah was present.

"The Prime Minister wanted to know how zakat funds could be distributed more effectively and how the system could contribute to poverty reduction. He also gave necessary directives to the relevant ministry," he said.

Turning charity into empowerment

Experts say zakat can make a lasting impact if it is used not just for short-term relief but also for skill development and employment generation.

Shaykh Ahmadullah shared the experience of the As-Sunnah Foundation, which has been working with zakat funds for several years.

"In the last year alone, we spent about Tk13 crore to provide skill development training to 2,100 unemployed youths, helping them secure employment," he told reporters after the meeting on zakat management. 

Those trained youths collectively earned around Tk42 crore over the past year, demonstrating how zakat-based programmes can create sustainable income opportunities.

He also emphasised the need to bring charities that collect zakat under a regulatory framework.

"If the government introduces policies and creates a competitive environment to assess the effectiveness of these organisations, the impact will be much greater," he said.

Ahmadullah added that the annual volume of zakat across countries belonging to the Organisation of Islamic Cooperation is estimated at around $600 billion, equivalent to roughly Tk45 trillion, and Bangladesh could benefit significantly if it develops a proper mechanism to attract such funds.

Economists welcome the move

Economists have also welcomed the Prime Minister's initiative, describing it as a positive step for the country's economy.

Executive Vice Chairman of the Microcredit Regulatory Authority (MRA) Prof Mohammed Helal Uddin said bringing zakat funds into a regulated system could have a strong economic impact.

"If the government can mobilise and utilise this fund effectively for poverty reduction, it will inevitably benefit the economy," he said, adding that structured zakat collection could gradually help reduce poverty at the grassroots level.

Economist and former Vice-Chancellor of Jahangirnagar University, Prof Abdul Bayes, said unregulated use of zakat funds has often prevented the real beneficiaries from receiving support. 

"In many cases, vested political interests have used these funds for their own purposes, and there have even been records of zakat money being used for extremist activities."

He added that bringing zakat funds under regulation would ensure that the rightful recipients benefit from the resources.

Need for reforms and transparency

Islamic economists have also suggested revising the Zakat Fund Management Act, 2023 to strengthen the Zakat Board and ensure transparency in zakat collection, distribution, and utilisation.

Sharia economist Shaykh Muhammad Ayub Ali Hossain said a large portion of zakat in Bangladesh is currently distributed to orphanages, mosques, and madrasas each year, yet the living standards of beneficiaries often remain unchanged.

"The main reason is the scattered and unplanned distribution of zakat," he said.

Countries such as Indonesia and Malaysia have already demonstrated success in managing zakat through organised government systems.

Experts say that if Bangladesh can introduce a structured, transparent, and possibly digital zakat management system, the funds could play a major role in reducing poverty and improving livelihoods across the country.