About the Project
This project tries to study that whether Islamic economic principles have validity and rationale behind them to be followed in today’s time, more so, when Capitalism after reigning over Socialism in 1990s has also received set back in Great Recession of 2007.
Allah taught us the desirable behavior, actions and attitudes by giving us guidance through a functioning conscience i.e. inner guidance and by sending to us the pious Prophets i.e. external guidance. Muhammad (Peace Be Upon Him) was the last messenger and Quran, the last and only authentic source of guidance for the whole world till the end of this world. After revelation came to Muhammad (Peace Be Upon Him) 1400 years ago, Muhammad (Peace Be Upon Him) being the last messenger of Allah is the only source of divine guidance for human beings.
Since no messenger and divine guidance were to come after Muhammad (Peace Be Upon Him), His teachings are thorough and comprehensive and based on principles that encompass any particular context and civilizational mode and applicable for all times for all societies.
Societies and civilizations are not bound to follow any particular culture, tradition, custom, particular tools and ways of carrying out different functions of life; they are only obliged to follow certain broad principles. In compliance with these principles, the societies are given room to make their own modus operandi which suits their particular civilization, extent of development and access to modern tools and techniques.
Islamic Economics is a project to research on Islamic Economics in the research areas of:
- Interest Free Corporate Finance.
- Interest Free Public Finance.
- Interest Free Commercial Banking.
- Theory of Taxation in Islam and Formulation of Islamic Fiscal Policy.
- Postulates of a Monetary Regime and Formulation of Islamic Monetary Policy.
- Inflation Targeting in Interest Free Economy.
- Dealing with Scarcity of Capital in Interest Free Economy.
- Holistic Development Economic Framework in Interest Free Economy.
- Pricing Capital Complying with Islamic Principles.
- Phase wise Application of Proposed Principles in Economy.
- Empirical Research to Determine the Case for the Validity of Solutions.
Project’s Goals
- The Project will support and promote research and researchers in Islamic Economics.
- Original papers with applied focus and impact factor will be considered for publishing from the platform of Islamic Economics Project and will be published on Project’s website.
- The project will strive to promote its researches at various platforms including research conferences etc.
- The project will endeavor to foster healthy debates and envisions becoming a think tank in Islamic Economics.
How You Can Participate
- By praying before Allah for guidance for all of us.
- Reading the project’s research.
- Writing in-depth articles and papers for the project.
- Providing feedback and criticism.
- Encouraging others in your network who have interest in Sociology, Philosophy, Economics and Religion to read the project’s research.
About the Author
This site showcases a preliminary account of my ongoing voluntary research on Islamic Economic System. I took this project in 2004 when I started my undergraduate studies at Bahria University. The inspiration for the project came from my personal affiliation with Madrasa for 6 years. I was always interested in Islamic studies, but when I decided to pursue higher education in business and finance, I felt that luckily I possess the needed aptitude and dedication to contribute in the field of Islamic economic and financial system. I do not claim to be an expert in Islamic studies nor in Finance and Economics. The recommendations presented on this website have the sole objective of presenting ideas that can cure our socio-economic ills before the general readers, religious scholars, economists and policymakers. The objective is not to infer and endorse, but to seek solutions to our chronic socio-economic ills in the framework of Islamic principles.
I was born in Karachi, but my schooling and college education was completed in Hyderabad that is 160 miles north of Karachi. I have had a very unique educational background. I have studied in Madrasa, a private school and then in a semi-government university. In Madrasa, I learnt Quran by heart. I came to Karachi to pursue Higher Education in 2004 and graduated Cum Laude in 2008 from Bahria University. I did my MS in 2010 from Szabist, Karachi. Currently, I am pursuing my PhD in Islamic Economics.
In Academics, I was Editor of Bahria Economic Magazine and contributed with a research paper in its inaugural issue. Another paper was published in Accountancy Magazine with the title “Critical Analysis of Islamic Banking” in 2007. Besides that, I have also written and presented a research paper on “Risk Management in Islamic and Conventional Banks” in 12th National Research Conference at Szabist in 2008 and on “Role and Functions of Central Bank in Islamic Finance” in 14th National Research Conference at Szabist in 2009.
A research paper on "Analysis of Stock Screening Principles in Islamic Mutual Funds Industry" was published in True Banking Magazine in February 2010.
I was awarded a commendation certificate for writing the book “Industries of Pakistan” for National Book Foundation. I have given lectures at various universities on issues relating to Islamic Economics and currently serving as a visiting faculty member at University of East, Hyderabad and HIAST Institute.
My principle issues of interest are ‘poverty’ and ‘inequality’. Both of these problems are pertinent to developing countries like Pakistan. In Pakistan, 25% of the people live below the line of poverty according to the government statistics. There is huge income inequality with 20% of the rich, affluent and resourceful class occupying 80% of the country’s wealth.
Income inequality leads to social stratification. Class divide expands into social relations like marriages and professional relations in the form of nepotism. National cohesion and collective work towards national goals is overlooked. Classes exist to consolidate their own existence and vested interests. Only short-term policies are pursued and that too on the direction of International agencies like IMF and World Bank. Policies even though proven effective in one system need modification sometimes to be effective in another system with a different set of characteristics.
Short-term orientation leads to economic growth in patches but without any long-term orientation towards capacity building and infrastructural development, the growth is unsustainable. Therefore, poverty and inequality persist in the society. Poverty and inequality lead to illiteracy, inadequate health conditions and poor standards of living in general. Education, health, sanitation and adequate standards of living can all be provided if the country has enough income and if that income is distributed fairly equally. Conversely, if there is low per capita income and if it is distributed unequally, the basic amenities of life cannot be provided to the masses.
Fundamental problems of developing countries and since developing countries make up most of the world’s population; the fundamental problems of world can generally be categorized under ‘poverty’ and ‘inequality’ in the 21st century. However, it is overshadowed by its consequences in the form of terrorism, poor health, sanitation facilities and illiteracy.
Income inequality stems from wealth inequality. I have argued in my work that direct taxation should not only focus upon income but also on wealth. Documentation of the economy is necessary to make facts based effective policies. Fiscal expansion through desperate deficit financing only increases leverage in the economy and even put its existence at risk. It only delays the inevitable and the central issues remain unresolved. Documentation is necessary to increase the tax base and the size of the formal sector.
I have always been open to diversity in ideas, culture and society. I have the habit of accepting something different in favor of rejecting some of my former views if anyone can prove them wrong. I have always maintained that issues should be resolved through intellectual reasoning.
The readers’ comments, guidance and criticism will enrich my knowledge and give me the chance to further sharpen my knowledge base and convert these ideas into practicable models for the development of our people.
Salman Ahmed Shaikh
Reflections of the Past - Autobiographical Note
