A 2016 study on the state of Individual philanthropy in Pakistan by the Pakistan Centre for Philanthropy (PCP), found that 98 percent of Pakistanis contributed an estimated Rs240 billion in a year for philanthropic purposes, amounting to more than 1 percent of the country’s GDP, which is surprisingly similar to giving trends in developed countries. More recently, PCP’s ‘Pakistan Giving Index 2021’ (PGI) report examined philanthropic trends and practices amongst Pakistanis. A perception survey of 2,000 individual respondents revealed that despite COVID-19-related socioeconomic challenges i.e. income-based disparities, unemployment, and rising poverty, 84pc Pakistanis still gave in one form or the other during 2021, irrespective of gender, employment status, or income levels. In the case of corporate philanthropy, an upward trend is in the volume of giving and a gradual shaping of Corporate Social Responsibility (CSR) in Pakistan. Data collected by PCP for 2020 demonstrates that the total volume of CSR donations in Pakistan is approximately Rs13.32bn. Of this, public listed companies have contributed the largest share, amounting to Rs9.64bn, indicating a progressive increase in donations over the last two decades. In addition, diaspora philanthropy has gained prominence in recent years. Although there is limited research on diaspora philanthropy in the Pakistani context, PCP’s report titled ‘Pakistani Diaspora Philanthropy in the UK: Trends and Variations’ (2019) showed that the total annual volume of philanthropic giving was around £1.25bn, representing nearly 1.3 million British Pakistanis residing in the UK. An earlier study, ‘Philanthropy by Pakistani diaspora in the USA (2005)’ revealed that total giving by Pakistani-Americans was approximately $1bn a year, including $250m in cash and in-kind contributions as well. In spite of recurring economic crises, Pakistanis actively extend moral and material support to the needy, especially in the month of Ramazan, displaying compassion strengthened by their faith. While Pakistanis do support philanthropic causes, particularly in health and education. There is a discernible preference for directing funds towards consumptive options. Out of the total annual charity in Pakistan, 17 percent goes to providing ready food, and a similar percentage goes towards the health sector. Providing dowries to poor girls account for 25pc of the total charity expenditure and 13pc goes to schooling. An intriguing paradox, often discussed privately, is the stronger trend of giving observed in Sindh. Despite lagging behind Punjab in many development indicators, the province outperforms in generosity, perhaps due to Karachi’s strength. The prevailing perception is that Karachi leads in charitable endeavors by a clear margin. Many prominent business executives entrenched in the country’s philanthropic realm attribute this trend to the unique characteristics of Karachi, a mega city inhabited by a highly diverse population. The tradition of giving is in-built into certain segments of the population. Citizens prefer donating to established organizations with effective management. Many attribute Karachi’s philanthropic position to its equitable treatment of deserving recipients irrespective of their sect, gender, or ethnicity. Punjab’s magnitude of giving amounts to approximately Rs112 billion out of the total Rs239bn given in Pakistan, translating to a 47pc share while all other provinces collectively collect 54pc. In terms of Zakat, mandatory giving in Islam proportional to wealth amassed, Punjab leads in both rural (Rs6bn) and urban (Rs6.2bn) areas. Additionally, the Pakistan Giving Index 2021 indicates that 84 percent of people in Punjab reported donating for charitable purposes, with the impact of donations found to be greater than in other provinces. If Pakistan is to achieve its sustainable development goals, a strategic shift from informal individual giving towards more institutionalized forms of philanthropy needs to be encouraged. Effective government regulation of philanthropic transactions and collection and disbursement by social welfare organizations may ensure that private charity goes towards more formal and structured social philanthropy.
