This Ramazan providing food to the needy at Sehr/Iftar and distribution of ration bags individually and through charities at mosques, offices, bus stops, sidewalks, empty plots, green belts and dedicated spaces has been more visible than before in cities, particularly in Karachi.

In the current stressful environment, when the 24/7 news cycle has been adding to the public anxiety and businesses helplessly watch the power antics, the sight of young volunteers teaming up to serve food to random people offers a heartening sight.

“Even if it is an exercise to access the warm glow of the rich, it’s worth it. The high level of friction with an uncertain future, at the top of routine life stresses, is affecting the mental well-being of the faint-hearted. Such sights of generosity and caring help calm raw nerves and ignites a glimmer of hope,” commented Dr Asma Afreen. She said she often stops at Iftari sites on her way back home from clinic just to soak in the positive vibes.

Does collective serving of free Iftari at more places indicate an uptick in the total volume of charity in Pakistan in Ramazan 2023? Not likely, keeping the general economic slump in sight.

Some charities report an increase in inflows from abroad owing to the rupee depreciation and increase in zakat as gold prices rise

The general assessment, based on background interviews of several dozen practitioners active in the philanthropic space and those interested in tracking trends of fund flows, is that the individual local giving has taken a hit, but the flow from abroad has increased this year.

They blamed the economic downturn that rendered many past donors less resourceful and compromised their giving capacity. They had to chop their donations for affordability reasons. As for overseas Pakistanis, even if they send as much in hard currencies as before, the massive devaluation almost doubles the amount in the local currency.

The total charity during the holy month runs in hundred of billion of rupees in Pakistan, ensuring the sustainability of multiple world-renowned general charitable entities like Edhi Foundation, Chipa, Salani, Alamgir, Jafaria Disaster Management Cell (JDC) and those in health and education sectors as Sindh Institute of Urology and Transplantation (SIUT), Layton Rahmatulla Benevolent Trust (LTBT), Shaukat Khanum Cancer Hospital, Indus Hospital, Fatmid, Akhuwat, The Citizen Foundation (TCF) besides scores of others, some run by religious and political parties.

Some seniors of big charities trashed the perception of a dip in donations in 2023 and said their collection has actually increased by 15 to 20 per cent this year in the first twenty days of Ramazan. Isfandyar Inayat, GM, The Citizen Foundation, said over the phone that the inflow of funds to his organisation is more than before.

He did not share the details but insisted that there has been a more robust response from donors this year. One possible explanation, he said, could be the hike in the price of gold that increased the volume of liable Zakat.

“I believe the good work of our organisation in systematically imparting quality education to poor kids has been widening our base of supporters and hence higher collection. “Much also depends on the targeted charity market,” he added.

Even families of blue-collar workers are forced by economic stress to swallow their pride and line up in queues for monetary or material help

The facility of online money transfers through multiple apps with options for instant donation to many leading charities must also have facilitated potential donors wary of the hassle of physical transactions that involve visiting far-off offices of charities they wish to support.

Dr Abdul Bari Khan, president, Indus Hospital, confirmed receiving 20pc higher donations over the phone this year. “The donations hiked but far less than what is required to cover the increase in the cost of managing our operations. If donations are up by 20pc, the requirement has gone up by 40pc.”

He saw big scope in improving donations. If the full potential of giving in Pakistan is realised, then it can add up to about Rs2 trillion against the roughly Rs300 billion collection estimated annually, Mr Khan projected.

However, many relatively smaller outfits, dependent on a close circle of friends and their families here and abroad, reported a major shrinkage in the collection this year.

Karimullah Adni, managing partner of a law firm, runs a charity Amanatdar that provides a host of services to the needy with the primary focus on feeding and providing rations to the deserving.

“For us, donations have slumped by 50pc this year, while the number of people seeking help has increased by about the same percentage,” he asserted. “Many charities are struggling with the rising costs the same way as households in Pakistan”. He admitted, “making the donation process simple, such as online transfers, text-to-give, or mailing in a check, has widened the base of donors”.

In contrast to his own experience, he shared some data without identifying the source. “I learned that donation inflows from abroad increased to $74.9 million (Rs11.4bn) against $65m (Rs9.9bn) during the first 20 days of Ramazan last year.”

While discussing the growing ranks of the needy in the country, he mentioned food inflation in urban and rural areas of 47.1pc and 50.2pc and deaths of the poor in crowds competing to get a free sack of flour.

He noted the government’s efforts to encourage donations by offering tax incentives and the launch of an online donation portal to streamline the process and ensure transparency in the distribution of funds.

Discussing the decline in the volume of donations, he did not rule out the possibility of people switching back to helping directly growing ranks of the needy in their own circles. He also blamed social media campaigns against charity for supporting free riders and punishing those working hard to earn with dignity.

“These pseudo-reformers have no idea what misery feels like or how much a meal matters to those who can’t afford two square meals. Many try within their means, but even those who don’t must not die hungry.”

He quoted a Pakistan Centre for Philanthropy’s findings of around Rs240bn individual donations and Rs16.45bn corporate donations annually.

Multiple other organisations involved in providing free or subsidised meals reported a steep hike in demand for free food as they said even families of blue-collar workers are forced by economic stress to swallow the pride and line up in queues for monetary or material help.

Published in Dawn, The Business and Finance Weekly, April 17th, 2023