Examining the potential of Zakat in eradicating extreme poverty in Bangladesh in the context of SDG 1.1

Eradicating extreme poverty, as outlined in Target 1.1 of the Sustainable Development Goals (SDGs), has remained an enormous challenge for Bangladesh since its independence in 1971. This study examines the potential of zakat, an obligatory form of Islamic charity, as a mechanism for addressing extreme poverty in the context of SDG 1.1. Drawing upon a cross-sectional survey, data were collected from 384 beneficiaries under the As-Sunnah Foundation’s self-reliant project, which utilizes zakat funds to empower individuals through sustainable livelihood initiatives. In addition to descriptive statistical analysis, a one-sample t-test was employed to determine whether the average living cost of beneficiaries after receiving support significantly exceeded the international poverty line threshold. The results reveal a statistically significant (p < 0.001) increase in living costs above the poverty line, indicating the effectiveness of zakat in reducing extreme poverty in the country. These findings demonstrate the potential of well-administered zakat-based programs to contribute significantly to achieving SDG-1.1 and underline the value of integrating the zakat system within national poverty reduction strategies.