Tag Archives: Zakat

Early Analytical Studies on Consumption in Islamic Framework

Salman Ahmed Shaikh Muslim economists have employed the mainstream economics tools to explicate consumption in the Islamic framework. Kahf (1980) uses indifference curves and budget lines. Ahmed (2002) uses utility framework to incorporate Islamic injunctions in the model assumptions as … Continue reading

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Islamic Texts on Consumption and Spending

Salman Ahmed Shaikh Islam has its own distinct worldview. The theistic concepts of Tawheed, Khilafah and Akhirah govern the Islamic way of life. The concept of Tawheed implies that all living and non-living things are created by Allah. The concept … Continue reading

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Intertemporal Consumption in Islamic Economic Framework

Salman Ahmed Shaikh A typical lifecycle pattern of humans shows that the need to consume basic necessities exists throughout the lifetime, while the capacity to earn incomes is present mostly during the working years of life. In childhood and old-age, … Continue reading

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Leveraging on Private Philanthropy in Pakistan for Establishing Waqf

Salman Ahmed Shaikh Importance of Social Finance in Pakistan The United Nations Development Programme (2016) reveals that multi-dimensional poverty in Pakistan stands at 38.8%. Poor people usually depend on their incomes for consumption expenditure given the lack of other assets … Continue reading

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Towards an Integrative Framework for Understanding Muslim Consumption Behaviour

In a new paper recently published in Humanomics (Vol 33, Issue 2), an attempt is made to integrate Islamic and mainstream economics framework towards a more realistic understanding of Muslim consumption behaviour. First, the paper gives an account of the … Continue reading

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Distribution of Resources in Islamic Economic Framework

Salman Ahmed Shaikh Scarcity of resources is the basic premise on which the theories of classical and neoclassical economics are based upon. It implies that resources are scarce relatively as compared to the wants that are unlimited. But, this premise … Continue reading

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Achieving Market-Led Growth in Islamic Economic Framework

Salman Ahmed Shaikh Islmic economic framework does not argue for a state-led or state-run economy. In fact, Islamic economic principles are very much open and favorable towards market based economy. By enabling market economy to run competitively, an Islamic economy … Continue reading

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Effects of Islamic Inheritance Laws on Wealth Inequality

Salman Ahmed Shaikh In an interest based financial system, wealth inequality automatically results in income inequality with legal permissibility of risk-less earnings for the lender. Hence, wealth inequality perpetuates and concentration of wealth increases in the society with the passage … Continue reading

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Economic Analysis of Zakat System

Salman Ahmed Shaikh In Islam, Zakat is a religious obligation to pay a part of wealth and production to the government who has to subsequently distribute the Zakat proceeds for the socio-economic development in the heads of Zakat identified in … Continue reading

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Islamic Economic Framework and Systematic Life

Nida Shoaib The religion of Islam and the individual’s way of life should not be considered as two separate things. Islam is a way of life than just being a set of commandments and it allows the individuals of the … Continue reading

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