1) 37 million Americans live below the poverty line, with at least 2.3 million experiencing homelessness each year. 2) The richest Americans have more wealth than the bottom 45% of households combined. 3) An Islamic economic system aims to manage resources for the benefit of individuals and communities in accordance with Islamic principles, ensuring basic needs are met for all.

2.  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

3. Concentration of Wealth in the West

4. Islamic Economic System
 Social 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)

5. 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

7. 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

8. Taxes
No 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

10. 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

11. Agriculture Land laws
 Lease of agricultural lands (Muzariyat) is haram
 Agricultural 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

12. Evidences
 The 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.”

13. 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.

14. 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.”

15. Currency
Metallic Currency
 Gold
 Silver
 Any other precious metal
 Currency notes can be used in lieu of gold and silver

16. Riba
 interest 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]

17. Islamic Banking System
Bank 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)

18. Zakat
 Zakat 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 – Debts
Live Stock
Land (Ushr)
Any tradable commodity including property

19. 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

20. Import and export duties
 A 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 zakat
 A 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

21. 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.