Interest-free package and the process of Islamization -- reflections on the budget

When Pakistan became independent, Muslims thought that a new, Islamic socioeconomic order would replace the old, oppressive one they had been enduring. However, such an order did not materialize. The Council of Islamic Ideology and a group of economists worked for nearly three years to produce two reports on interest-free banking and zaka. They promoted the idea of mudaraba (trust financing), under which bodies such as N.I.T. now operate. Participation-term-certificate dealings have come into practice. Zaka will now be deducted from bank accounts. The policies actually adopted seem less than impressive when compared with original proposals. Complaints against governmental policies include: excessive personal-income tax rates; inconsiderate adoption of duties and import/export taxes; and discrepancies between official priorities and the people's desire for Islamic, egalitarian policies. The 1980-1981 budget inadequately reflects Islamic principles. The very place of the state i