Transforming generosity: How Pakistan can redefine philanthropy for the 21st century

Philanthropy in Pakistan is a deeply embedded social and religious tradition. Rooted in Islamic obligations such as Zakat and Sadaqah, and reinforced by cultural expectations of compassion and generosity, charitable giving is widespread. According to the Pakistan Centre for Philanthropy (PCP), 84 percent of Pakistanis donate an estimated over $2 billion annually. Given the nature of ‘giving’ the figures are much higher.

Much of this philanthropy is informal — often consisting of direct support to individuals, families, or community networks rather than through structured channels. This tradition of person-to-person aid, while compassionate, limits the potential for long-term societal transformation. In fact, there is a discernible preference for consumptive giving — such as food handouts and religious donations — that provides instant gratification, rather than sustainable impact of investments in education, healthcare, or economic empowerment.

This over-reliance on consumptive philanthropy hinders the country’s ability to address entrenched development issues such as poverty, inadequate education, climate vulnerability, gender inequality, and poor healthcare. With a population exceeding 240 million and growing fast, the challenge of achieving sustainable development in Pakistan is colossal. It cannot be met through fragmented, ad hoc giving alone.

What Pakistan needs is a strategic shift from charity to transformative philanthropy — the kind that addresses root causes rather than symptoms. This means aligning philanthropic resources with long-term national and global priorities, including the United Nations Sustainable Development Goals (SDGs). Focusing on goals such as quality education, gender equality, climate resilience, and universal healthcare would enable the philanthropic sector to become a central actor in Pakistan’s development trajectory.

Pakistan ranks 33rd in the 2024 World Giving Index — respectable, but not reflective of its full potential as a big reason is the dominance of informal giving. Structured philanthropic organisations, both local and international, are better equipped to design, monitor, and scale impactful interventions. They can pool resources, implement governance frameworks, and ensure that interventions are not only effective but also equitable.

Corporate Social Responsibility (CSR) programmes also present a key opportunity. Unfortunately, CSR in Pakistan remains underdeveloped too, with most companies offering token donations rather than comprehensive social investment strategies. Redirecting CSR toward transformative causes could fill critical gaps in public service delivery—especially in education, rural healthcare, women’s empowerment, and climate adaptation.

Pakistan’s philanthropic culture is therefore, among the most generous in the world, and its youth population is socially conscious and eager to make a difference. But to truly harness this potential, it must evolve from reactive charity to strategic development. The example set by the Aga Khan Development Network — where giving is structured, sustainable, and aimed at creating systemic change — offers a powerful blueprint.

Led by the Aga Khan Development Network (AKDN), the AKDN represents a model of values-driven philanthropy that prioritises sustainability, dignity, and long-term development. Unlike reactive or symbolic charity, the late Prince Karim Aga Khan consistently emphasised using resources to build capacity, particularly in marginalised rural communities.

The AKDN was among the first in Pakistan to highlight the need for gender empowerment, establishing the School of Nursing at Aga Khan University of Health Sciences to provide professional pathways for women in healthcare. This early intervention rippled outwards, enabling thousands of families to break the intergenerational cycle of poverty.

The Aga Khan Rural Support Programme (AKRSP) also became the forerunner of micro-finance in Pakistan. Emphasising upon local participation, capacity building, and financial inclusion this was a shift from dependency to empowerment. Over time, the AKRSP became a reference point for similar programmes across South Asia and Africa.

The Edhi Foundation set up by Abdul Sattar Edhi and his wife Bilqis (both deceased now) were true pioneers in emergency health care, orphanages for destitute children, arguably running the largest network of ambulances in the world. The Edhi Foundation continues to inspire generations of Pakistanis.

Cricketer turned politician Imran Khan’s highly visible public drive to raise funds for Shaukat Khanum Cancer Hospital and Research Center in 1989 inspired the latest wave of structured and purposeful generosity. This universally recognised facility added another one in Peshawar and is ready to add one in Karachi. These hospitals provide free cancer treatment to nearly 80 percent of patients.

Despite these successes, Pakistan’s philanthropic sector remains under-leveraged. Mistrust in the regulatory environment persists. Many donors hesitate to route funds through formal social development organisations due to concerns over transparency, governance, and state interference. This fear is not unfounded: the state has historically been opaque in distributing funds and also failed to develop robust oversight mechanisms, and cases of misappropriation have tainted the nonprofit sector.

Overcoming these challenges requires three key shifts. First, strengthening public trust through robust NGO regulation, transparency standards, and government facilitation — not control. Second, incentivising structured giving through tax breaks, public-private partnerships, and donor education. And third, shifting the national philanthropic narrative — from giving as moral duty to giving as a tool for transformation.

If philanthropy in Pakistan can reorient itself from charity to transformation, and from informal generosity to institutional impact, it has the potential to uplift the nation and also to serve as a model for the wider Islamic world. In doing so, it can honour its cultural and religious traditions while also embracing the tools of modern development — a fusion of compassion and strategy, rooted in purpose and built for the future.

Sajjad Ashraf served as an adjunct professor at the Lee Kuan Yew School of Public Policy, National University of Singapore from 2009 to 2017. He was a member of the Pakistan Foreign Service from 1973 to 2008 and served as an ambassador to several countries.