Issue to be discussed The state of economy after 60 years The role of the government

Governments

proactive Fiscal Policy Eradication of Zulm Concept of Taxation in Islam Bait-ul-Maal Subsidy Powerhouse Inflation control Pro-employment policies Pro-development policies Monetary policies

What the Quran DECLARES (4:59):

Ayah Verily! Allah commands that you must ignored render back the trusts to those, for to whom they are due; and that when you judge betweencenturies! men,
you judge with justice. Verily, how excellent is the teaching which He (Allah) gives you! Truly, Allah is Ever All-Hearer,

Establishment of Justice

Governments Role

To provide & facilitate in the peoples interest, as ordered by ALLAH Build economic environment Provide ALL kinds of safety Implement Shariah with enforcement !

Seek the Help & Guidance of ALLAAH

Responsibility must be answered for!

Common Government Satanic Practices

All injustices in the name of ISLAM Intention: to please other than ALLAH Excessive taxes & inefficiencies

Excessive luxuries/protocols
Blatant ignorance

MUST lead with best example !

Leaders right to always rule = BEST Decision

Criticism intolerable = Punishable !

Pro-active Governance

20% direct influence on economy (C+I+G+[X-M])

Maximize GDP
Pro-competition Anti-Monopoly

Compare Pakistan & Japan

Enhancing productivity & efficiency

What should the tax rate be ?

Erradication of Zulm - Injustice

Eradication of all un-islamic practices & injustices Lawful dealings only (ban all Satanic trades) Avoidance of Gharar (uncertainties) Eliminating hoarding, shortage, monopolies Cheating & fraud totally unacceptable

Taxation in ISLAM
100% 0%

taxation ?

Zakat is not tax

taxation ?

What What The

should the tax rate be ?

should tax revenue be used on ?

more the tax, the more the inefficiencies, corruption, luxuries & protocols

Bait-ul-Maal Subsidy Power House

Subsidy is an integral component

Strategic use of subsidies

Subsidy on core consumer items Effect of subsidy on technology

Receivers of Zakat
Poor Needy Travellers To

reconcile hearts towards islam (Dawah) To spread Islam (Jihad) Collectors of Zakat Freeing slaves Debtors

Sadaqah-Charity
A

religious obligation changing humanities attitude towards the have-nots concept of saving = Sharing ? concept of wealth

The

The

How can a tax-free, subsidy-based economy survive ?

By

efficient management of natural resources (oil, gas, chromite, marble, precious stones, etc)
no natural resources, must be creative & innovative (Coke/Pakola, medicine, handicraft, hand made wonders, etc)

If

Pro-employment & Pro-investment

Problem of unemployment, over-employment, & national inefficiency Converting population into skilled-labour

Nurturing & retaining human capital

Investment in infrastructure -> Nation building Real investment in evolving military assets

Monetary policy ANTI-inflation

Biggest

note ? Interest rate ? Restrict money supply Investment in real industry

DEFLATION ??
Which is more powerful Fiscal or Monetary?

How did U$ get out of the Great Depression?

Isnt this market crash situation Severe drought High unemployment (30%) similar to the High Inflation current Social unrest Pakistani Increase in organized crime economic Fear of spreading communism disaster ? Dwindling economy Capital flight Banking system failed
Stock

Pro-Active Fiscal Policy

Maximizing GDP (Investment, Production, Export), Minimize government spending on luxuries Tax rate ~ ZERO Real use of Bait-ul-Maal (Zakah Fund, Sadaqah Funds, resource harvesting/mining) Subsidization of all core consumer items (wheat, rice, sugar, petrol, gas, electricity, cement, plastic, metal, wood, etc) Education 100% FARD Transforming population into labor force Widely dispersed vocational training institutes, avoid non-sense industries Nurturing & retain human capital Promote permanent residency (only temporary travel) Curb capital flight, pro-investment Strategic employment Pro-competition, anti-monopoly Build infrastructure (roads, electricity, gas, water, education, health, etc)

Trade creates surplus Unlike

RIBA, trade creates surplus (money) Compare with RIBA example:

Riba-free loan Raw->supply Sajid 1,000 Fishes Earning profit to pay Navid 1,000 Farms interest-free loan Farid 1,000 Fruit Jam

Future of Islamic Economy

All

other economies have failed!

No

economy has performed as stated theoretically made economies have evolved, adapted and failed economy has always succeeded when applied

Human

Islamic