This study examines whether Zakat, a mandatory Islamic social finance mechanism, effectively mitigates household food insecurity, thereby contributing to Sustainable Development Goal (SDG) 2 (Zero Hunger) in Khyber Pakhtunkhwa province of Pakistan. Utilizing household-level data from the Pakistan Social and Living Standards Measurement (PSLM) Survey, integrated with district-level administrative Zakat disbursement records, we assess the impact of Zakat per capita on food insecurity as measured by the globally validated Food Insecurity Experience Scale (FIES). Employing ordered logistic regression alongside subsample and robustness analyses, we identify a statistically significant negative association between Zakat allocation and household food insecurity severity, even after accounting for demographic, socioeconomic, and regional controls. This relationship is particularly pronounced in urban areas, reflecting better institutional efficiency and targeted administrative systems. Although household characteristics, such as dependency ratios, education levels, gender of the household head, and socioeconomic status, substantially influence food security outcomes, Zakat remains a robust and independent determinant. These findings highlight Zakat’s potential to support global development agendas, specifically in achieving SDG targets related to hunger and poverty alleviation. The study underscores the importance of effectively integrating faith-based social finance into mainstream policy frameworks, particularly in resource-constrained and institutionally challenged contexts.
Zafar et al. (Tue,) studied this question.