Islamic Perspective on Economics

1. Islamic Public Finance
Islamic perspective on Economics
Memona Maqsood (2018-B.Isl.Std-009)

2. Objectives of
Islamic Socio-
Economics

3. Islamic
Approach to
Public Finance
1. General Principles
Methods of deducing laws:
Qiyas
Istihsan
Istislah
Ijma
2. Role and function of state for economic welfare (7 points)
3. Objectives of Fiscal Policy
4. Instruments of Fiscal Policy
Revenue System
a) Zakah the Islamic Social welfare tax
b) Other sources of Revenue

4. Economic
Implications of
the Islamic
Fiscal policy
1) Distributive effects
2) Resource allocation
3) Economic growth
4) Saving effects
5) Investments
6) Work effect

5. Monetary
Stability and
Economic
Stabilization
Change in interest rates influence people’s decisions to invest or consume,
which ultimately effects economic growth…

6. Conclusion
1. Islamic fiscal system based upon Basic teachings of Islam
2. Assures at least minimum basic standard of living
3. Ensures welfare (from zakah) and general (funds)
4. Motivate people to act in accordance with IslamicTeachings
5. Tax burden should be equally distributed
6. Flexibility in shaping budget policy
7. First reliance on Zakah and if not met help is taken from general wealth