Abstract:
In this study an attempt has been made to introduce Zakat institution as a prime factor for the economic and financial stability of Pakistan. The central argument that runs throughout the study is that if Zakat system is run effectively in an organized way, it shall play an important role to overcome the economic and financial crises that Pakistan has long been confronted with. This assertion has been proved with statistical data available in the concerned departments of the state. It has also been suggested that the zakat collected fund if utilized in the parameters of Shariah can play more effective role in poverty reduction. Finally, it has been suggested that taxation system of Pakistan should be revised and there should be removal of extra taxes. The study is consist of four chapters that comprise of further sub chapters. The first chapter covers the concept of Mal, Bayt al-Mãl, its financial resources, zakat and usher obligations and their relevant legal prescriptions (ahkãm). The second chapter focuses on economic system, laws, industrial and rural economic systems found in Pakistan. Moreover, problems/issues have been identified that are responsible for its economic crises and backwardness. The third chapter examines the zakat system as implemented in Pakistan that includes the system and ways of its collection and distribution. It also identifies certain errors and defects in the system and suggests their remedies. The final chapter tries to explore the impact of zakat institutions on the economy of Pakistan. It examines the role of governments and proposal of investment of zakat fund along with Islamic law position expounded in the deliberations of Islamic Ideology Council of Pakistan and Islamic Fiqh Academy, India
