FAHEEM UR REHMAN

Reg ID: 181177

Class: BS AvM-IV
Date: 26 Mar, 2020
Submitted to: Ma’am Samina Batool
Question#

How would you define Islamic Economic System? What are the permissible and non-
permissible ways of earning in Islam? Why does Islam emphasis on earning halal income?
What are the impacts of haram on human life? Validate your argument with Quran and
Hadith support?

ISLAMIC ECONOMIC SYSTEM:

The Islamic financial device is the collection of guidelines, values and standards of behavior that
organize financial lifestyles and set up members of the family of manufacturing in an Islamic
society. Those guidelines and standards are primarily based on the Islamic order as diagnosed in
the Quran and Sunna and the corpus of jurisprudence opus which changed into developed over
the last 1400 years by lots of jurists, responding to the converting occasions and evolving life of
Muslims all around the globe.

We stay in a world wherein the whole thing wishes cash. The significance of wealth is growing
inside the lifestyles of mankind. Every person is looking after money to preserve existence. But,
most of the fundamental standards of Shari‟ah in earning profits is the prohibition of illegal
earning. It's miles obligatory in Shari‟ah to use the legal approaches of making a living and
averting the illegal methods as Allah stated in surah (Albaqara, 2: 173). The verse clean said that
Muslim authorized best to eat appropriate that turned into provided for him.

Permissible way of earning in Islam:

Islam puts great emphasis on business transaction,
especially Halal and Haram. Allah clearly has defined the parameter of Halal (legitimate)
and Haram (illegitimate) in the Qur’ān. One should read the commandment of Allah regarding
income before making his own judgement on the way of earning. Islam has made a scale to
measure the legitimacy of income and profit on business. Allah said in the Qur’ān:
“Do not devour one another’s property wrongfully, nor throw it before the judges to devour a
portion of other’s property sinfully and knowingly.” (Qur’ān, 2:188)

The Prophet Muhammad (P.B.U.H.) taught the ummah this teaching in practice. In his last
sermon five days before his demise, he said: «He whom I have might lash his back; I offer him
my back so that he may avenge himself on me. He whom I have ever blasphemed his honor, here
I am offering my honor so that he may avenge himself» Then he descended, and performed the
noon prayer. Again, he returned to the pulpit and sat on it. He resumed his first speech about
enmity and some other things. A man then said: "You owe me three Dirhams." The Prophet said:
“Fadel, pay him the money. “(Ar-Rahiq Al-Makhtum)

In Islamic law, the word Halal is derived from the verb Halla “to become lawful, legal, licit,
legitimate, permissible, permitted, allowable, allowed, admissible, un-prohibited, and
unforbidden.” the best among this definition is the saying of Prophet (PBUH): “What Allah has
permitted in His Book is halal, and what is haram is haram”. (Hadith Ibn Maja:3358). Legal
earning means: The income earned according to the instructions and the ways approved by Allah
and His Prophet (PBUH). Allah says: “O you who believe! Eat the good things we have
provided for you and be grateful to Allah if it is Him ye worship” (Albaqara,2: 173).

Following are some halal ways that Islam discusses and theses are as blow:

1. He who earns his livelihood by lawful means is Allah’s friend. 8. It is obligatory to

struggle for “Halal Earning”.
2. He who earns his livelihood by Halal means, will meet Allah in such manners that his
face will shine like a full bloom moon of 14th night.
3. He who eats lawful daily bread without a slight mixing of unlawful loaf for consecutive
forty days, Allah fills his heart with Noor (divine light) and beads of wisdom spring from
his heart.
4. “O ye who believe! Devour not usury, doubled and multiplied; but fear Allah; that ye may
(really) prosper.” (Surah Al Imran 130:3)
5. The Prophet Muhammad was asked what type of earning was best, and he replied: “A
man’s work with his hands and every (lawful) business transaction.” (Al-Tirmidhi,
Hadith 846)
6. “O (you) Messengers! Eat of the Tayyibat [all kinds of Halal foods which Allah has made
lawful (meat of slaughtered eatable animals, milk products, fats, vegetables, fruits, etc.]
and do righteous Deeds. Verily I am all knower what you do. (Surah Al Muminoon 51).

Non-Permissible ways of earning in Islam:

Non-permissible way of earing means haram
way of earning this is against the law of Quran and Sunnah and it is also known as Kasb e haram
or unlawful earning. Following are some unlawful mean of earing in Islam and these are as
followed:

1. Theft
2. Bribery
3. Interest on loan
4. Gambling
5. Devour the wealth of orphans wrongfully
6. Marketing of narcotics and haram commodities
7. Exploitation and usurpation
8. Terrorism and threats
Allah said in the glorious Quran:

“O those who believe do not eat up each other's property by false means unless it is a trade with
your mutual consent.” (Alnisa,3:29).

Holy Prophet (P.B.U.H) said about unlawful way of earning:

“Every flesh nourished by haram deserves fire” (Hadith Shu`abul iman,5521).

Holy Prophet (P.B.U.H) said about wealth of orphans:

“Lo! Those who devour the wealth of orphans wrongfully, they do but swallow fire exposed to
burning flame.

SIGNIFICANCE OF HALAL:

Allah said in the Quran:

“Do not devour another’s property wrongfully unless it is by trade based

on mutual consent.” (Qur’ān, 4:29)

The Prophet (peace and blessings of Allah be to him) said:

“Seeking of a halal earning is the

(next) Fardh (duty) after the Fardh (Salah)”. (Baihaqi)

The Prophet (peace and blessings of Allah be to him) said:

The sins of a person who returns home

exhausted in search of legitimate earnings are forgiven by Almighty Allah and when he gets up
next morning almighty Allah is pleased with him.
“A friend of Prophet (SAW) requested the Holy Prophet (S.A.W) to pray to him that, may his
every prayer come true. He (S.A.W.) said, “Eat Halal bread, your every prayer will come true”.

The Prophet (peace and blessings of Allah be to him) said:

“He who earns his livelihood by

Halal means, will meet Allah in such manners that his face will shine like a full bloom moon of
14th night”.

Earning Halal income is a part of worship. Allah has promised to reward for

earning Halal Income. Following is the significance of hala in the light of Quran and Sunnah.
CONSEQUENCES OF ILLEGAL EARNING:
Earnings from illegal source will result the
following to a Mankind, in the Day of Judgment everyone will be asked on how he earn and how
Prophet Mohammad (PBUH) said:

"Man's feet will not move on the Day of judgment before he will
be asked about his life, how did he consume it, his knowledge, what did he do with it, his wealth,
how did he earn it and how did he spend it, and about his body, how did he wear it out."(Hadith,
Attimidhi, 2341.).

Prophet Muhammad (PBUH) reported to have said:

“Every flesh nourished by haram deserves fire”

(Hadith Shu`abul iman,5521).

Some other sayings of Prophet Muhammad (PBUH) about Haram are as follows:

“If a person leaves

unlawful money after his death, it will become provision for his hell”.

Allah does not accept the call of a person who eats Haram income and Also the person how eats
haram and earn income by illegal way he is the fuel of Jahannam. Following are some
consequences of illegal earning in the light of Quran and Sunnah.

CONCLUSION:

Islam permitted Muslim to earn wealth as much as he wishes, provided that

he earns it through legal means. Islam has ordered Muslim to be cautioned in their way of
earning income. It is very important for a Muslim to be careful on how he earn and how he
spends, because any flesh that was faded by haram deserves nothing but hell. Well-being of
mankind lies on legal earnings. Illegal earnings invite misfortune to a man. It is a compulsory
duty upon a Muslim to earn income in a legal way. Therefore, any Muslim who earn his money
illegally has to seek forgiveness from Allah. It is understood that Islam is a religion that is not
harsh and will not allow people to attain prohibited money. Whoever earn money in a legal way
will be rewarded by Allah and who so ever earn illegal money will be punished by Allah on the
day of Judgment.