A question raised following Pakistan's decision to Islamize the economy was that of how business would be financed without interest. The reason for uncertainty regarding Islamic finance is that, for a long time, there has been a lack of concern for examining the economics of
The basic axioms of the Islamic economic system are drawn from al-
The author, in a description of an interest-free economy, names and then clears up a misconception amongst some regarding economic systems. Rejection of the economic system of Capitalism is not, as might be felt, a rejection of capital as a factor of production. Capital can in fact be used without the adoption of a capitalist's worldview. The author discusses the role of capital as leading to wealth production and he expounds on the functions carried out by capitalists and by deposit holders in an economy.
The second International Conference on Islamic Economics was held in Islamabad from March 19-23 and chaired by Khurshid Ahmed, a professor. The event's theme was 'Development Distribution and Finance in Islamic Perspectives.' Papers in English and in Arabic were presented. There were 150 delegates from 20 countries. Open forums on development and on Islamic economic education were held. It was decided at the gathering that an International Association of
Developing countries face issues primarily economic in nature. What is needed at this time is a plan for development by which the wealth disparity between the socio-economic classes will not be exacerbated. Pakistan is in a state of poverty and insecurity. The problem has lasted for decades. While the few enjoy riches, a great majority of the population is at or around the subsistence level. There is an absence of the intellectual vigor needed for growth materially and morally. Corruption pervades the society. The developed world unfairly taps the less developed world for resources.
The founding of Pakistan was on the grounds that Muslims of the region were to again be independent and were to set up a modern state strictly in adherence with Islamic law. Since independence, there has been a struggle to achieve these ends. In July of 1977, the shari`a was declared to be the basis of Pakistani law and eforts were made to move towards compliance with it.
Pakistan's government is dedicated to making the country's society an Islamic one, based on
The author gives an outline of the problems with conventional banking and presents the benefits of Islamic banking, with an eye particularly on development in the Muslim world.