Islamic Economic System Slides 5r57g

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An economic system is a system that involves the production, distribution and consumption of goods and services between the entities in a society particular to solve the economic problems.

ECONOMIC SYSTEM

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TYPES OF ECONOMIC SYSTEMS Ø Market system Ø Command system Ø Islamic system

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ISLAMIC ECONOMIC SYSTEM 

A system that involves the production, distribution and consumption of goods and services between the entities in a society under the Islam laws to solve the economic problems.



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OBJECTIVES 

Achievement of Falah Material well-being of the citizens of an Islamic state.



Establishment of Social Justice





To establish socio-economic justice among all the of the nation



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 Achievement

of Moral and Material Development

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 

Material as well as moral development of the Muslim community

Circulation of Wealth Discourage hoarding and ensure the constant circulation of wealth

 

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 

Elimination of Exploitation Elimination of exploitation of one human by another

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TAXATION  Zakat 

Tax which is collected from the rich and distributed among poor

 Ushar 

Tax on agricultural produce

 Kharaj 

An agricultural tax received from nonMuslim

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 Jizyah 

A tax received from non-Muslim

 Khumas 

the share of the Islamic state which was collected from:  Spoils of war  Mineral wealth  Treasure-Trove  Extracted from the sea 3 Stars Group

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Islamic Banking 3 Stars Group

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

The banking system based upon the principles of Islamic law and its practical application through islamic economics

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FEATURES:  Profit

& loss sharing  No fixed interest (Riba)  Investment in halal business

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HISTORY OF ISLAMIC BANKING  Started

from Egypt in 1963 by Ahmad Elnagger  1975 – Islamic Development Bank  Islamic banking growing at the rate of 1015%  Size about $200-$800 billion.  250 islamic financial institution in 50-75 countries.

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ISLAMIC BANKING IN PAKISTAN  Started

in 1977-78  In 1985 all commercial banks start Islamic banking  1991 declared as unislamic  2000 SBP declared to start islamic banking.  2002 issued license to Meezan bank.

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MODES OF BANKING AND FINANCE

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PARTICIPATORY MODES  Mudaraba  Musharaka  Diminishing

Musharaka

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TRADING MODES  Ijara  Murabaha  Musawamah  Salam  Istisna  Tawaruq

(Exceptional)

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1.Economics is a Science of wealth (to teach selfishness). K.K Dewett 2.Economic is made to study “wealth” rather than “welfare”. 3.Whatever the economics is concerned with it is not concerned with: EStudy of relation of real goods (physical science) and wealth (monetary science) EStudy of relation of material welfare (of individual) and general welfare (of humanity). EStudy of relation of “short term needs: and “long-term needs” 3 Stars Group

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X

X

X

Short-term approach Y

Y

Long-term approach 3 Stars Group

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IS IT BENEFICIAL…???

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EXAMPLE: 

disposable Amount/ Nisab

Rs. 100,000



In Current system: Ø deposit in bank Ø Interest Rate



13%

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At year end Ø Amount will be

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Rs. 113,000

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IN ISLAMIC ECONOMY: Ø No interest  

At year end

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Ø Amount will be

Rs. 100,000

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IS THE ISLAMIC ECONOMIC SYSTEM APPLICABLE.?

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 Change

the whole system  Change people’s attitude

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THANKS 3 Stars Group

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