Distributive aspects of zakat

The institution of zaka is at the core of Islam. Zaka and ushr are paid to the needy, and the essential requirements of the poor are thus met. Pakistani law names, among other outlets for zakah and ushr, the poor, the handicapped, and hospital-building. Al-Qur'an named individuals to whom zaka can be given. Institutional giving may cut down on some abuse problems that may arise in a system of cash payments. Zaka lies at the center of the economic well-being design of Islam. The wealthy are required to pay from their excess assets. The Islamic economic system also prohibits interest, an institution by which people are rewarded without their having put forth any effort. The implementation of zaka would not raise consumption at the expense of savings and investment. Rather, zaka would help maintain the spending of the poor on their principal needs. Such consumption analysis is secondary to the overall need for economic growth.