The Ministry of Religious Affairs has obtained principal approval from the federal government for a Shariah-compliant Hajj savings scheme that will allow prospective pilgrims to gradually save for the annual Islamic pilgrimage while reserving their preferred Hajj year with a 10% upfront payment. The scheme is expected to launch within the next two to three months and will be administered by a financial institution rather than the ministry itself, which is the structural decision that determines most of the practical features of how the scheme will work.

For most Pakistani families, the cost of Hajj has become a real financial planning challenge. The total cost of performing Hajj has been rising steadily, and the lump-sum nature of the payment has put the pilgrimage out of reach for many families who would otherwise be able to perform it through a structured savings plan. The new scheme is the federal government’s response to that challenge, and the design of the scheme, including the savings structure, the slot reservation mechanism, and the choice between a profit-bearing Islamic account and a non-profit current account, is the part that will determine whether it actually makes Hajj more accessible.

How the savings scheme works

Under the proposed scheme, intending pilgrims will make monthly deposits into a savings account managed by a financial institution while reserving their preferred Hajj year by paying 10% of the estimated pilgrimage cost. The example the ministry has used to illustrate the mechanism is straightforward: a family that wants to perform Hajj in 2035 will pay 10% of the current Hajj cost upfront to book the slot, and then continue making monthly deposits into the savings account until the year of travel.

The savings account will offer a choice between two options. The first is a Shariah-compliant profit-bearing account, where the depositor earns a return on the savings that helps offset inflation and currency depreciation over the multi-year period. The second is a non-profit current account, where the depositor simply accumulates the principal over time. The Shariah-compliant option is the more attractive of the two for most depositors, because the profit return is meaningful over a multi-year horizon and the structure is fully compatible with Islamic finance principles.

When the accumulated amount in the savings account reaches the cost of Hajj for the chosen year, the funds are transferred to the Ministry of Religious Affairs, and the pilgrim’s slot is confirmed. The cost of Hajj for the particular year is determined by the ministry at the time of travel, which means the actual cost may be higher or lower than the estimated cost at the time the slot was booked. The Shariah-compliant profit return is designed to give depositors a buffer against cost increases over time, which is the part of the design that makes the multi-year planning practical.

The 10% upfront payment

The 10% upfront payment is the mechanism that ties the savings to a specific Hajj year. Without an upfront commitment, the savings scheme would be a generic savings product without a specific reservation, and the queue for Hajj slots would be harder to manage. The 10% amount is meaningful enough to demonstrate commitment without being so large that it prices out the very families the scheme is trying to reach. The ministry’s view is that 10% is the right level to balance accessibility with seriousness of intent.

For families that are considering the scheme, the practical question is whether the 10% upfront payment is affordable. The current Hajj cost for a Pakistani pilgrim under the government scheme is in the range of Rs 1.1-1.2 million, which means the upfront payment would be in the range of Rs 110,000-120,000. For middle-class families, that is a meaningful but not unmanageable amount, particularly if it is being saved toward over a year or two before the formal slot booking.

The new long-term Hajj framework

The savings scheme is being introduced alongside a broader reform of Pakistan’s Hajj management framework that is designed to run through 2030. The four-year framework was approved by the federal cabinet earlier this month, and the religious affairs ministry has now provided more detail on how the new system will operate. The key elements of the framework are continuous registration through 2030, a fixed quota split of 60% for the government scheme and 40% for private operators, a digital waiting list, expanded online services, third-party audits, and stronger oversight of private tour operators.

The continuous registration is a meaningful improvement over the current system, which operates on an annual registration window that creates congestion and uncertainty. Under the new system, intending pilgrims can register at any time for any pilgrimage season through 2030, which spreads the registration load and gives families more flexibility on the timing of their application. The fixed quota split provides clarity for both government and private operators about the share of the overall Hajj quota that each will manage.

What to watch

The next two to three months will be the period during which the scheme is finalised, the financial institution partner is selected, and the operational details are worked out. The Ministry of Religious Affairs has indicated that the scheme will be administered by a financial institution rather than the ministry itself, which is the right structural decision and one that will be important to get right. The choice of financial institution, the terms of the savings account, the operational workflow for slot booking, and the integration with the existing Hajj application process are all practical details that will determine how easy the scheme is to use in practice.

For ordinary Pakistani families who are considering Hajj over the next several years, the most useful thing to do now is to start thinking about the timing. The savings scheme will work best for families who plan several years in advance, because the longer the savings period, the smaller the monthly deposit required to reach the cost of Hajj by the chosen year. Families that want to perform Hajj in 2027 or 2028 will need to move quickly once the scheme is launched, because the savings window for those years is already short. Families that are planning for 2030 or later have more flexibility, and the scheme will work particularly well for that longer planning horizon.

For the broader Hajj management system, the savings scheme is one of the more meaningful structural reforms in recent years, and the success of the scheme in its first two to three years of operation will be a useful indicator of whether the broader framework is delivering on its objectives. If the scheme takes off, the impact on the accessibility of Hajj for middle-class Pakistani families will be meaningful. If it underperforms, the framework will need to be adjusted, and the next iteration will need to address whatever the implementation gap turns out to be.

For the broader Hajj context, our Hajj 2026 flight routes coverage walks through related logistics. For the financial planning context, our online bank account opening guide is relevant. For the religious policy context, our Mufti Taqi Usmani crypto ruling coverage is useful. For the broader government schemes context, our Pakistan Government Schemes coverage is related.

Source: Ministry of Religious Affairs announcement; Religious Affairs Secretary Abrar Ahmed Mirza briefing; Federal Cabinet approval of the four-year Hajj framework.