This research paper provides a theoretical reframing of the objectives underlying Islamic economics and finance. While Islamic finance is largely known for avoiding specific prohibitions—such as Riba (interest), Gharar (excessive ambiguity), and Maysir (gambling)—critics argue that it has become operationally identical to conventional finance. The author argues against this phenomenon of ‘Shariah arbitrage’, where the outward form is Islamic but the substance remains conventional.
The book by Qanit Khalilullah and Sohaib Umar offers a critique of the modern fractional-reserve banking system, arguing that it is the primary engine behind chronic economic instability, inflation, and wealth inequality. The authors propose a radical macroeconomic transition to a full-reserve banking model. This proposal is specifically tailored as a structural panacea for Pakistan’s crippling debt crisis, while simultaneously being framed as a genuine path to establishing a Shari’ah-compliant Islamic financial system.
World merchandise trade grew 4.6% in 2025, beating the 2.4% forecast, as demand for AI-related goods offset tariff uncertainty and policy risks. Asia drove 71% of that growth, supported by resilient emerging-market demand, expansionary policies, and North American frontloading ahead of US “reciprocal” tariffs. Pre-conflict projections had 2026 merchandise trade growth slowing to 1.9% and global GDP at 2.8%. However, the Middle East conflict has curtailed Persian Gulf oil shipments, which account for 20% of global liquid petroleum use, pushing crude to ∼$90/barrel and LNG to ∼$16/MMBtu. If prices stay high, merchandise trade growth may drop to 1.4% and GDP to 2.5% in 2026.
Contemporary halal certification represents a fundamental institutional transformation: the shift from an ontological framework in which permissibility is assessed directly against Islamic law to an epistemic-institutional regime in which halal status is constituted through institutional verification. This transformation is a necessary response to the informational conditions of modern economies, but it introduces structural risks—certifier-pay conflicts, interpretive fragmentation, and form-over-substance compliance—that the current institutional framework inadequately addresses.
To catalyze systemic transformation, the author introduces the Global Housing Resilience Accelerator (GHRA), which implements a mechanism called Tokenised Sustainable Equity for Safe Housing (TSESH). By leveraging technological and regulatory advancements in block chain and blended finance, TSESH transforms trapped housing equity into a liquid, verified resilience asset class called Resilience Property Tokens (RPTs), structured with binding social protection covenants.
The book deconstructs the methodology of modern science. It acknowledges the empirical success but highlights its limitations. Modern science only addresses the how (mechanism) and ignores the why (purpose). By restricting reality to what can be measured in a lab, modern science ignores the metaphysical realm, leading to a fragmented understanding of existence. The book also explores the historical tension between the Church and science in Europe, which led to the total separation of religion and the state. The author argues that because Islam never had a ‘Dark Age’ conflict between faith and reason (as seen in the Islamic Golden Age), the Western secular model of science is a solution to a problem that never existed in the Muslim world.
The IEA’s Energy Innovation Forum highlighted the importance of policy support, international collaboration, and addressing financing gaps for first-of-a-kind projects. Breakout sessions focused on AI’s potential to accelerate innovation, diversifying battery mineral supplies, and reducing carbon dioxide removal costs. Recommendations include co-operation between trading partners, facilitation of partnerships, and government support for innovators. With sustained investment and cooperation, energy innovation can drive economic growth, improve energy security, and reduce emissions.
The author had written academic books contributing scholarly to the theory of civilizational decline and Islam’s position on human slavery, both at the individual level and collective level in the form of dynastic and authoritarian rule. In his later part of life, the author has shown a sublime way of writing which emphasizes the moral conduct in personal and social choices. With both an inclination as well as proficiency in literary writings, the author has produced life-changing novels in Urdu which have been translated in English as well. These novels are not only a unique addition to the propagation of Tawheed, but also are a unique addition to Urdu literature where the genre of novel is limited to romantic and thriller storytelling.
The paper begins by addressing the post-colonial emergence of Islamic economics, which sought to establish an independent discourse based on interest-free commerce, moral behavioral norms eschewing self-interest, and the pursuit of social justice. Despite these ideal goals, the field has faced severe criticisms from scholars such as Prof. Timur Kuran, Prof. Akram Khan, and Prof. Syed Tahir for failing to develop a unique value set, an original methodology, or the analytical power necessary to solve modern economic problems.
The primary goal of the book is to provide a conceptual framework and work-plan for the Islamization of Knowledge (IOK) specifically within the human sciences. It addresses the educational dilemma faced by Muslims due to the prevalence of secular Western models of thought, aiming to produce a re-integration of Islamic perspectives across all academic disciplines. The book is structured into several chapters that analyse both general theories of knowledge and specific applications in social sciences.
Islamic Economics Project 