37 million people live below the official poverty line—12.6 percent of the total population

At least 2.3 million people experience homelessness at some point each year, including nearly 1 million children

The richest among them has more wealth than the bottom 45 percent of the households combined

Concentration of Wealth in the West

Islamic Economic SystemSocial Science that studies human behavior

in terms of use and management of natural resources for the benefit of themselves and the community’s interest to seek the blessing of Allah s.w.t. (Hailani Muji Tahir, 1991)

Economic Problem

Human needs are of two types Basic Needs (limited) Luxurious Needs

World resources are enough to fulfil basic needs of all the people of world

Human needs are unlimited while there are limited resources to fulfil them

Right & Types of Properties

Three types of ownership Individual Public State

Islam admit the right to property but does not consider it absolute and unconditional

Land through Unlawful means

TaxesNo Taxes on common man

GST, Income Tax, Withholding tax, toll taxes etc. are all haram and will be abolished

There will be following permanent sources of revenues Al-Kharaj Al-Jizya Al-Ushr The fifth of Al-Rikaz (hidden treasures minerals) Import and export duty on foreign traders Zakat on import and export of the Muslim Trader Hima (Protecting from public properties

Taxes in Pakistan Agriculture sector in Pakistan contributes 40% to the GDP whilst

astonishingly its contribution to the tax revenue is a meager 1%

GST, which is an indirect tax extracted from common man, constitutes 37% of the total tax-revenue of Pakistan

No Zakat taken from the land mafia which owns billions of rupees of land for the last decade or so. Islam requires a Muslim to give two and half percent of the value of the tradable goods in alms as Zakat

Currently No Usher and Kharaj being levied on Agriculture produce

No wonder in democracy the elite legislate laws to tax the poor and give tax breaks to themselves

Agriculture Land lawsLease of agricultural lands (Muzariyat) is

haramAgricultural land if not used for 3 years will

be confiscated and allotted to someone who would cultivate it

Anybody who occupies a dead land (outside the planned city area) and revives it by building a house or a factory etc. becomes the owner of the land as well

EvidencesThe Sunan of An-Nisai states: “The Messenger of

Allah forbade leasing the land.We said, ‘O Prophet of Allah, can we then lease it for some of the grain.” He said, ‘No.’ We said, ‘We used to lease it for the straw.’ He said, ‘No.’We said, ‘We used to lease it in return of that on the irrigating Rabee’a.’ He said, ‘No, plant it or grant it to your brother.’”

Abu Dawud has narrated from Rafi’a ibn Khadeej that the Prophet also said, “Whoever has land, he has to plant upon it or let his brother plant upon it, and he cannot lease it for its third or fourth or a specified food.”

Bukhari related from ‘Aisha (ra) that the Messenger of Allah said: “Whosoever cultivated a land that is not owned by anybody, then he deserved it more.” Abu Dawud narrated that the Messenger of Allah said: “Whosoever fenced a (dead) land it becomes his”Bukhari narrated from Umar (ra) that he said: “Anyone who cultivated a dead land it becomes his.” Muslims and the Dhimmi are equal in this matter, because the Hadith is general in its words.

Residential Land

The State guarantees housing for the one who is in capable to build a house for himself and his relatives are also poor cannot support him

The Prophet (SAW) said: “The Son of Adam has rights to food, clothing and shelter.”

Currency

Metallic CurrencyGold SilverAny other precious metalCurrency notes can be used in lieu of gold and silver

Ribainterest transactions not allowed1

No interest based debt servicing

Encourages the wealthy to under take local investment rather than depositing their money in high interest deposit accounts

That is because they say: Selling is just like usury. Whereas Allah permitted selling and prohibited usury.” [Al-Baqarah: 275]

Islamic Banking SystemBank do not serve as financial intermediaries.

Hence in capitalist sense there are no banks. They will provide services of the like debit card,

LC for import export, Online fund transfer, internet payments, etc.

They will facilitate/establish communication between the investor (Muwakkil) and worker (Mudharib)

ZakatZakat is only taken from Muslim citizen after the passage of one

year if his wealth exceeds Nisab which is different for different categories

Liquid Currency Stocks (Raw material or Finish Goods)Receivable – DebtsLive StockLand (Ushr)Any tradable commodity including property

Cont. .Hence as a whole more than 2.5% of the total

wealth of the economy is collected from the society and injected back into the poorest echelons of the society.

This is a tremendous mechanism of producing a balance in the distribution of wealth within the economy apart from other Ahkam of Islam which allow the down trodden people to improve their economic situation

Import and export dutiesA Muslim trader only has to pay Zakat (2.5%)

of the property during import and export once a year1

No import or export duty other than zakatA Zimmi (non-Muslim citizen) will pay

according to the contract he had with state at the time of conquest

A Harbi (foreigner non-Muslim) will pay the same percentage of duty as his country applies on the traders of the Khilafah

Ethics and Morality Life in this world is temporary and there is

an eternal life after words. One has to make this worldly life a way to

get the maximum benefit in the life hereafter.