The earlier scholars provided application of Islamic juristic principles to derive and apply the Islamic teachings related to commerce, entrepreneurship and consumption. Muslim scholarship initially focused on public finance and its administration to deal with the practical problems of the newly formed state which expanded rapidly and required sound legal and administrative framework to legislate economic activities centred around agriculture and trade.
Clarity on issue of Riba is so important in Shari’ah that while recognizing change in value due to change in quality, it does not force us to exchange different qualities in equal quantity and yet in case of Amwale Ribuwiah, it does not allow these to be directly exchanged with any excess of weight (quantity) on either side. As generally understood by our scholars, this restriction was essential to stop practice of Riba by hiding behind difference in quality.
The banks’ ESG commitment can be in the form of adopting ESG framework in their banking operation and business strategy, incorporating ESG in credit assessment, and integrating ESG commitment in their banking products. In the case of Islamic banks, incorporating the environmental pillar can be adopted in the form of promoting green financing and integrating environmental risks in the banking operation. At the policy level, the financial authority is required to have an ESG framework to be implemented in the banking industry.
اس مختصر مضمون میں محترم جاوید صاحب کےمعاشی افکار پر کچھ اشکالات پیش کیے جاتے ہیں، خاص طور پر وہ اشکالات جو بینکنگ سے تعلق رکھتے ہیں۔ اپنے ان افکار کا خیال انہوں نے اپنی کتاب میزان کے قانون معیشت اور چند مضامین میں بھی کیا ہے جو ان کی کتاب مقامات میں چھپے ہیں۔ اس کے علاوہ الیکٹرانک اور سوشل میڈیا میں اورعوامی اجتماعات سے گفتگو کرتے ہوئے بھی ان افکار کا اظہار کیا ہے۔ چونکہ یہ پیچیدہ اور اطلاقی مسائل ہیں، اس لیے ممکن ہے اس میں اختلاف رائے اور اختلاف فہم پایا جائے۔ ایسا بھی ضروری نہیں کہ ایک دفعہ کے غور و فکر اور مشاہدہ و مطالعہ سے مسائل کی جڑ اور حل تک کامیابی سے پہنچا جاسکے۔ یہ بھی ضروری نہیں کہ ایک شخص ہی اس ساری تحقیق کو انجام دے یا اس کا ذمہ اٹھائے۔ چنانچہ تبادلہ خیال اور ایک دوسرے کے افکار کا جائزہ لینے میں قباحت نہیں بلکہ اس سے غلطی سے بچنے اور مسائل کے حل تک پہنچنے کا زیادہ امکان ہے۔ اس امید پر یہ چند اشکالات بصد احترام مزید غوروفکر کے لیے پیش کیے جاتے ہیں۔
The book compares Islamic and conventional economics in response to economic crises, both across countries and financial institutions and provides a brief analysis of financial crises from a theoretical point of view, examining various approaches. It discusses how the Islamic financial system could serve to mitigate the occurrence of a financial crisis, since the prohibition of Riba, Maysir, and Gharar transactions offers a solution to financial crisis from speculative bubbles and crash. It also discusses some of the challenges facing the Islamic finance industry.
Prof. Islahi argues that Muslim scholars made substantial contributions to economic thought, influencing both the development of Islamic economics and, indirectly, the foundations of modern Western economic theory. He challenges the notion that modern economics is solely a product of Western thought, highlighting the intellectual debt owed to earlier Muslim thinkers.
Riba al-Fadl is described as an unlawful excess in the exchange of two counter-values where the excess is measurable through weight or measure. The concept is based on some Ahadith according to which if gold, silver, wheat, barley, dates, and salt are exchanged against themselves, they should be spot and be equal and specified. If these conditions are not found, this transaction will become Riba al-Fadl.
Conventional banks only provide loans no matter whether the loan amount is used for purchasing assets or not. As far as repayment of debt is considered in conventional finance lease or mortgage loans, the interest is due from the very first date of sanction of loan till the very last. If the asset remains unusable during the conventional finance lease, the instalments including interest and principal repayment will continue without any break. If interest amount is not paid on time, then interest has to be paid on accrued interest along with financial penalties. Compounded interest can multiply exponentially.
This paper discusses the theory of interest espoused by Böhm-Bawerk. He described time preference as the origin of the legitimacy of the existence of interest. Time preference is defined as people’s attribution of more value to present goods than future goods with the same quality and quantity. Future goods can be consumed only in the future, whereas present goods can be consumed both now and in the future.
In modern mainstream economics, the definition of physical capital stock implies that it includes ‘produced means of production’. Some examples of physical capital stock in contemporary businesses include equipment, tools, machinery, buildings, furniture, infrastructures, installations and production plants.
Islamic Economics Project 