Islamiyat notes

Topics after mid:

1. Introduction of Islamic Law and Jurispudence
2. Islamic culture and civilization
3. Islam and science
4. Islamic economic system
5. Political system of islam
6. Islamic history
7. Social system of islam

Zoom class 1: Islamic Economic System

Goals of Islamic economic system:

1. Achievement of welfare
2. Economic development
3. Relief from poverty and starvation
4. Equitable distribution of wealth
5. Security of freedom
6. Elimination of waste

Ideological foundations of Islamic economics

1. Existence of the creator of the universe
2. Man is the vicegerent of God
3. Abundance of provisions
4. The resources of provisions are for the benefit of man
5. The resources of provisions can only be utilized in accordance with God’s will

Fundamental features of the economics system of islam

1. Inducement to maximum utilization of the resources of the universe
2. Use of lawful means for earning livelihood
3. Inducement to spend wealth within limits
4. Prohibition of amassing wealth
5. Arrangement of promoting circulation of wealth
6. Economic freedom
7. The right to private ownership
8. Equitable distribution of wealth
9. Moral values and role of Islamic state
10. Flexibility
11. Regulating mechanism of prices
12. Positive role of the state

Zoom class 2: Consumption chapter 4

Principles of consumption:
1. Principle of lawfulness
2. Principle of cleanliness
3. Principle of moderation
4. Principle of benefit
5. Principle of morality
6. Principle of trust
7. Principle of gratitude

Importance of moderation:
1. Beauty of life
2. Freedom from avarice
3. Freedom from extravagance
4. Growth in savings
5. Stability of economy
6. Mental peace
7. Moral superiority
8. Demand for self reliance
9. Curbing the economic and social evils

Islamic viewpoint of consumer behavior

1. The concept of hereafter in islam
2. The concept of wealth in Islam
3. The concept of success in islam
4. Equilibrium of muslim consumer

Harmful economic effects of conspicuous consumption

1. Low savings
2. Low investment
3. Low productivity
4. Low level of national income
5. Low level of employement
6. Inflation
7. Inequality in income distribution
8. High level of imports
9. Disequilibrium in balance of payments
10. Budget deficit
11. Burden of loans
12. Craze for profiteering would lead to high prices
13. Corruption
14. Unhealthy business activities
15. Heavy taxes
16. Demonstration effect
17. Miserliness may result in deflationary gap
Zoom class 3: Behaviour of firms

Moral values and attitude of firm

1. To abide by principles of justice
2. To observe principle of no injury
3. To conduct affairs on principle of benevolence

Motives of Islamic firm

1. Fulfillment of personal needs in moderation
2. Meeting family liabilities
3. Provision for future contingencies
4. Provision of resources for prosterity
5. Social service and contribution to the cause of Allah

Objectives of Islamic firm

1. To maximise its efficiency to earn maximum profit
2. Fulfill social needs and discharged social responsibilities

No notes made for pricing strategies of Islamic firms

Islamic law and juriprudence

Sources: Quran, Sunnah, ijma qiyas

Salient features of khilafat e Rashida:

 khilafat meaning rule of caliphs according to will of Allah
 khilafat e rashidah meaning golden age of rule of four rightly guided caliphs after the
Holy Prophet (pbuh) demise
 hazrat abu bakar: first caliph, became caliph in chaos, tribes rebelled, refused to pay
zakat, threat from roman an Persian empire, started the compilation of the holy
Quran
 hazrat umar: second caliph, ruled for 10 years, progressively increased Islamic State,
majlis e shoora a finance department, broke Islamic state into provinces, worked for
welfare of people, made schools and mosques through out state
 hazrat usman: third caliph, sent copies of standard Quran to all tribes, ruled for 12
years, last 6 years filled with chaos, rebellions, he showed peace to prevent
bloodshed of innocent muslims.
 Hazrat ali: fourth caliph, moved capital from Madinah to kufa in Iraq, spread
knowledge of Quran, focused more on knowledge, his assassination marked end of
caliphate,
 More features of khilafat: unlike priets who have all power Allah has all power in
khilafat, democracy in islam is in which Allah is sovereign and he makes laws people
do not make laws, khilafat is ideology state and can be run only by those that believe
ideology, equality secuiry welfare of its people
Characteristics of Islamic culture and civilization:
 8 main characteristics
 Tawheed( belief in one ness of Allah, his messengers and day of judgement)
 Self purification
 Dignity of man
 Equality
 Social justice
 Moral values
 Tolerance
 Optimisms and orientation

Moral and social values

 Humility
 Modesty
 Speaking of truth
 Integrity
 Patience
 Steadfastness
 Fulfilling ones promise

Umayyads and abbasids achievements and failures:

 Umayyad: first great muslim dynasty, 661-750ce, headed by Abu Sufyan, struggled
for caliphate, (achievements), centralized authority, fifth ruler made Arabic official
language of administration, rapid expansion of islamic empire to spain and india,
built great mosque of Damascus, battle of karbala, (failures), started to neglect rules
of islam, extravagance life of rulers, corruption, conflict of shia sunni.
 Abbasids: second great dynasty of muslim empire, 750-1258ce, name derived from
the name of uncle of Holy Prophet (pbuh), (achievements), focused on east rather
than west, moved capital from damascus to Baghdad, great advances in science
math medicine, more schools and libraries, arabic language culture and
archietecture flourished, one caliph al-Mamun influenced great change in research
and education, (failure of empire), power struggles, invasions, interior struggles with
farmers and army, incompetent leadersm heavy taxation, social mishap, Persians
captures Baghdad, invasions of mongols in Baghdad caused downfall

Difference between islamic and western culture:

 Islamic culture: based on tauheed and teachings of Quran and sunnah,
characteristics of Islamic culture, equality, no extravagance, wealth belongs to Allah,
no extremism, no discrimination, tolerance, brotherhood, dignity of man and moral
values, firms work for welfare not profits, life after death is the goal not success in
this life.
 Western culture: worldly life is fundamental, no belief in hereafter, desire for
seeking profits even at others expense, amassing wealth, wealth belongs to man,
show off culture, extravagance, materialism, freedom, not bound by any sort of
guidelines, greed, power means status, corruption, no human principles,
Islamic economy vs capitalistic economy
 major areas: ownership, taxes, land, currency, interest.
 Islamic economy: individual and state ownership, taxes of zakah ushr jizya al-khiraj
al-rikaz and other custom duties for non muslim, land unused for 3 years allotted to
someone else and lease of agricultural land is not halal and state has to guarantee
housing for the poor, currency based on gold silver and precious metals, interest is
forbidden real investment encouraged amassing wealth discouraged and balance
between capital and labor.
 Capitalistic economy: freedom of ownership for individuals and multinationals can
own public property, taxes include general sales tax income tax of around 36% anti
dumping and regulatory duties on imports and tax holidays for rich which increases
income gap, agricultural land can be leased and system doesn’t guarantee provision
of basic needs, currency backed by confidence in dollar and bubble created which
when pops results in loss in reward, interest Is legal amassing wealth is allowed and
one party always loses in a deal and you can earn by sitting at home.

Consumer behavior in Islamic vs materialistic society:

 Introduction of materialism and Islamic society
 Islamic society: moderate spending, earning through legitimate ways, principles
of consumption in islam: lawfulness, cleanliness, moderation, benefit, morality,
max welfare, trust, gratitude. Concept of hereafter, concept of wealth( wealth
belongs to Allah), concept of success ( true success is getting into Jannat), total
utility = worldly utility + eternal utility.
 Materialistic society: arises due to inferiority complex, success means earning
money in world, goal is to achieve maximum profit, measure self worth by
external sources such as assets and possessions rather than intrinsic
characteristics, caused in countries who undergo rapid economic growth, people
buy things even if they don’t want or need them to show their success,
important life goals are acquisitions of materialistic things, willingness to go into
debt to purchase goods, compulsive spending, greater financial stress, I can add
the points from harmful effects of conspicuous spending.

Fundamental features of economic system of islam:

 12 features
 Inducement to maximum utilization of the resources of the universe.
( offence to let these resources sit idle, leads to new discoveries, causes national
product to grow)
 Use of lawful means for earning livelihood(
 Inducement to spend wealth within limits( moderation, spend on needs, don’t spend
on prohibited goods)
 Prohibition of amassing wealth( causes downfall in sale of consumer goods because
needy people wont have money, becomes a curse for society)
 Arrangement for promoting the circulation of wealth( spend wealth in jihad, zakat
and sadaqah, interest not allowed)
 Economic freedom( follow shariah law)
  The right to private ownership( righ to ownership on lawfully earned money, right to
fulfill his needs, within limit set by shariah)
 Equitable distribution of wealth
 Moral values and role of the state( state responsible for curbing poverty and
providing goods,
 Flexibility ( islam open to new ideads)
 Regulating the mechanism of prices
 Positive role of the state

Income inequality in the light of islam:

 Income inequality is the gap between rich and the poor
 8 main reasons
 Education ( lower education leads to lesser pay)
 Skills and training
 Gender( woman earn less than men, woman consider a larger amount of factors
when considering a job)
 Experience and age
 Type of job
 Taxes
 Technology
 Globalization

Islam and the distribution of wealth:

 Distribution (firstly world economy should be natural and practical, secondly Islamic
economy ensures everyone gets what is rightfully theirs, this ensures eradication of
concentration of wealth)
 Circulation of wealth( earn lawfully, consume lawfully, give charity, invest in lawful
businesses)
 Rent of land( one of the lawful uses of property, land that can yield benefits
(agricultural) cannot be rented, rent should be fixed, justice benevolence, no
injustice)
 Fixing the rent of land( the rate should depend on the work that has to be done on it,
the yields etc)
 Profit (profit is permissible on those sales which are according to islam, no fraud
misrepresentation, weights and measures should be standard, no hoarding to create
shortage, goods should not be sold at higher prices, rate of profit should be fixed
according to principles of justice and equality )
 Wages( wages should be fixed as to not harm any party)
 Labour( dignity and honor in labor, income from easy gains etc is forbidden, islam
has established brotherhood that level of respect should also be given to employees)
 Rights of employee ( wage, settled work terms, work load, right to withdraw from
work, work done should be lawful, unlawful work leads to unlawful wage)
 Duties of workers ( if workers avoid work they should not be paid, employee has to
take care of property of employer, employee should do the best he can do)
 Inheritance laws
 Sadaq and other optional measures
 

Basic institutions of government in islam

 Bait ul mal (means house of money, served as treasury, administers tax, sources of
revenue: zakat,ushr,jizya,kharja,sadaqat,faie,khumas,daraib,rent,Ashur,waqf,
expenditures include: stipends&salaries,public welfare works, extension of qarz e
hasan, loans, pensions,subsistence allowance, civic allowance, fiscal and monetary
policy)
 Majlis-ash-shura( advisory council, one of the ways a khalifa was selected, elected
assemblies with legislative powers)
 Shariat court ( constitutional court of Pakistan, power to examine and determine
laws of country, has 8 muslim judges, 3 are required to be ulema professionals in
islamic law, any laws deemed un-islamic government has to cooperate)
 Al hisbah (means accountability, individual or collective duty which maintains norms
of sharia, regulates markets and provides municipal services)
 Council of Islamic ideology( constitutional body of Pakistan, gives legal advice on
Islamic issues, recommend laws in accordance with Quran and Sunnah, guidance for
parliament and provincial assemblies)
 Ulema council( includes Islamic clerics, legal scholars etc, Pakistans council formed to
reduce sect violence, true aim of this council is to spread islams message of peace)
 Wafaqi banul madaris

Moral values and economic system of islam

 Highest moral values
 Piety ( muslims can rise in ranks only by piety, avoid prohibited things and acts etc,
basically everything like hoarding unlawful income etc)
 Equality ( zero discrimnation, state provides necessities, no monopolies,
 Brotherhood( circle of kinship islam allows no distinction between
muslim/nonmuslim relatives, no discrimination by religion, modesty in spending, no
member of society should be left helpless, fraud etc)
 Justice(
 Benevolence
 Cooperation
 Concept of halal and haram
 Islamic code of business ethic

Fiscal policy in islamic economy

 Theory of taxation ( tax on wealth not income, imposition of any tax other than zakat
is contrary to islam, taxes not imposed at time of emergencies, tax collectors who
force to pay will go to hell according to saying of Holy Prophet(PBUH), period of tax
should coincide with period of need, taxes should fulfill objectives of islamic
government, tax should correspond to capacity of tax payer, principle of equity
certainty convenience and economy)
 Public expenditure( eco objectives of islamic state: fulfill basic needs, narrow wealth
gap, eco development, full employment, progress. Obligatory expenditures: defence,
 law&order, justice, provision of necessities, propagation of islam, promotion of
good)
 Principles of public expenditure( achieving objectives of fiscal policy, public welfare
justice, safeguarding rights of future generations, inter-regional development,
simplicity, fulfilling needs of people)

Islamic political system

 Nature of Islamic laws
 Characteristics and purpose of Islamic state
 Main principles( sovereignty of Allah, khilafat of mankind, legislation by shura,
accountability of government, independent judiciary, equality before law)
 Rights of people etc
 Rest of points are on balance, rights, laws etc

Prices in Islamic economy

 Don’t create shortage by hoarding
 Reference of surah Furqan ayah 20
 Sincere promotion and marketing
 Don’t lower prices
 Firms should not profiteer, principles of piety benevolence brotherhood

the impact of the Holy Quran on the human history

 Introduction about the Quran ( the message contained is for all times to come, rise
of Islam strategically placed in Arabia, englightenment for all manking, man is
vicegerent of God on earth)
 Teachings of Quran( equality, dignity, brotherhood, value of education, religious
tolerance, freedom from slavery and all exploitations, dignity of manual labor, zero
discrimination, woman rights)
 Impact( value of thinking, pondering, rationalization, enabled arabs to become
leaders in science and scientific methods, rights gicen to women, termination of
slavery, no compulsion in religon, provided clarification of how to live, halal and
haram, moral values, jihad etc)

Islamic modes of financing

 Financing is the process of providing funds to firms
 Islamic financing prohibits interest but not gains on capital
 Islamic modes of financing have 3 categories
 Rent based modes(ijarah leasing, tawarruq)(ijarah, Islamic alternative to leasing, risk
and rewards lie with the owner, all rights borne by leaser, leasee is responsible for
fraud or damage, used for fixed asset financing and retail products like care
financing) (tawarruq, buyer purchases on a deferred payment basis, buyer can resell
inorder to get cash to make initial payment)
 Participation based mode( mudarabah, musharakah)(mudarabah, equity financing,
contract between capital owner and investment manager, financial loss borne by
 capital owner)(musharakah, both partners participate in management and provision
of capital and share profits and losses equally)
 Trade based mode( murabahah, istisna, salam)(istisna, customer gives a specific
order to producer to manufacture commodity, commodity is bought before being
produced, price is fixed but doesn’t have to be paid In advanced)(murabahah,
transaction fone on a cost plus profit basis, seller discloses the cost then adds his
profit to get a selling price)(salam, supplier sells the goods at a future date in
exchange for a full advanced payment)
Behaviour of firm under the influence of Islamic spirit
 Principle of justice, benevolence and injury
 Firms policy based on 8 principles(no unlawful goods dealth with, resources used to
make necessities not luxuries, investment made on important things, resources used
to provision of social and cultural goods, competition is discouraged, policy should
be just, no misleading info or advertisement, no uncertainty in deals)
 Motives of firm ( fulfillment of personal needs, meeting family needs, provision for
future contingencies, provision of resources for proterity, social contribution for the
cause of Allah)
 Objectives of firm( demand of justice, welfare of society, max efficiency, fulfill social
needs, increase production of lawful goods, lawful production methods)
 Al hisba( regulated markets)
 Unlike conventional firms ( no profiteering, no spending on unlawful activities, no
monopolies, welfare thought, no exploitation of customers)

Influences of islamic culture and civilization

 Intro to islamic culture and civilization
 Influence on subcontinent( ruled by muslims for 2 centuries, bound by sharia law,
favoured merchants, merchants like ibn batuta and sher shah suri made trade laws
abolished taxes on trades and made trade routes, influenced language cuisine dress,
made certain areas specialized hubs Moradabad for brass mirzapur for carpets,
muslim architecture had patterns and flowers islam bans drawing of animals and
living things)
 International influences( spread from arab caused domestication of camels for trade,
invaded spain and learnt from greeks which led to increased knowledge in science
and medicine, Europe was influenced by extravagant culture of muslim rulers europe
got silk porcelain etc through trade, ibn al shatir introduced planetary theory which
allowed Copernicus to derive that sun is center of universe, ibn sina wrote one of the
most detailed book on medicine, economic scholars etc)

Need for Islamic union

 Union is a platform for leaders of countries to voice concerns and reach solutions
 European union is a good eg. 27 member states and established in 1993
 Need socio- economic reasons( no centralized currency in muslim world, little part in
effecting global currencies, economic depressions due to sanctions by other
countries, no currency traded in forex market, weak position in global markets, no
unified muslim identity)
  Political reasons( no unified political system, civil wars and rebellions, atrocities in
syria and iraq, arabia has non-existence human rights, no legal harmony which
protects citizens, no country helps each other)
 Religious needs( sectarianism formed, all muslim countries hate each other, conflict
between arabia and iran due to sect, no proper rights to minorities, no central body
to enforce laws to protect people)
 Military needs( The Islamic Military Counter Terrorism Coalition is an
intergovernmental counter-terrorist alliance of countries in the Muslim world,
united around military intervention against ISIL and other counter-terrorist activities.
It's founder being King Salman of Saudi Arabia and it's Commander-in-Chief being
COAS(r) Raheel Shareef of the Pakistani army.

Quran and science

 Intro ( Quran is a complete source of information etc )
 Astronomy( moon is a dormant body that reflects light and sun is a lamp that gives
of light, moon is called noor and sun is called siraaj in Quran, stars and planets
kawkan(planets) are celestial bodies that reflect light and cant generate own light
like sun Quran refers that stars burn and emit light, orbits Arabic verb vasbahoon
implies orbits quran (23:33) also states this
 Geology ( water cycles, complete at the end too many Quran refs

Impact of tauheed and the belief in the hereafter on human life

 Intro about tauheed and belief in hereafter
 Moral impacts( vision changed from worldly to eternal, disregard for worldly things,
things in hereafter the ultimate goal, belief that Allah has the highest power
everything belomgs to him, )
 Spiritual impacts( modesty and humbleness, virtous and upright, a believer never
becomes despondent, testimony of faith inspires bravery in mankind, peace and
contentment, )
 Social impacts( momin is a mirror for other momin in society, man is charged with
universal mission to establish harmonious society,)
 Political
 Economic

Islamic concept of worship( quiz topic 1)

 Preforming ritualistic acts is just one part of worship
 True meaning of worship (Almost all actions are some sort of worship, islam looks at
the individual as whole and one is required to submit oneself to Allah, this means
ones all activities should be as per the instructions of Allah, thus worship effects
ones daily activities)
 Non ritual worship( faith is made up of sixty something branches from which believe
in the Oneness of Allah is the highest according to a saying of the Holy Prophet
(PBUH), according to another saying spending on family is charity, kindness to family
 is an act of worship, putting food in the mouth in ones spouse is worship, all positive
activities of an individual are some sort of worship)
 Ritual forms of worship ( salah, zakat, siyam , hajj)
 Salah ( distinctive mark of a believer, prevents believer from all sorts of
abominations and vices and allows for direct conversation with the creator,
importance of repentance)
 Zakat( manifestation of faith, proves Allah is the sole owner of everything, act of
devotion, stabilizes society, rids selfishness and envy and resentment against
society)
 Siyam fasting( month of ramadan, makes muslim pure from within, all other
important stuff)
 Hajj( increases unity, strict exercise for self discipline, etcetc)

Holy prophet (PBUH) as an educator ( quiz topic2)

 Importance of education( first word revealed to the holy prophet was iqra which
means read, holy prophet said “ seeking education is incumbent upon every muslim
man and woman”)
 Intro ( Prophet was charged with reciting the Quran to all of manking, he set ideal
standard for education, his life provided complete guidance in all walks of life, )
 Characteristics:
 Inclusive teaching( the message taught by the Holy Prophet was inclusive in nature,
no kind of discrimination
 A perfect speaker: he had perfect speaking skills to convey his message to manking,
he used to repeat his message 3 times inorder to make sure the followers clearly
understood
 Taught with patience: explained everything to everyone, when tribes showed enmity
to message of islam he continued his mission till he was victorious
 Used to criticize the conduct not the person: he told the people their behaviours are
flawed, not that the people were flawed
 Teaching methods:
 Rewarded and appreciated positive behavior
 Taught by examples and practice( presented himself as a role model and asked
companions to follow)
 Gave examples on all suitable topics
 Repeated his teachings
 Made learners write ( Holy Prophet said ”Bind knowledge by writing”

Islam and social responsibility ( quiz topc 3)

 Intro
 Ten commandments in surah Al Anam
 Shirk
 Show kindness towards both parents
 Do not kill children due to poverty( treat kids with mercy, provide proper education,
raising them to be morally upright and responsible, the best gift a father can give his
child is education according to a saying of the Holy Prophet )
 Do not indulge in shameful and indecent acts
  Do not kill unjustly
 Care for orphans
 Truth and justice
 Be honest and fair in interactions
 Fulfill the covenant of Allah
 Follow the path of Allah

Quran and its impact on human history ( quiz topic 4)

 Intro ( divine guidance etc )
 Key messages and uniqueness of Quran( tauheed, no shirk, hala and haram, Quran
is precise and not altered, complete guidance)
 Impact on all aspects of life
 Education:
 Gender equality( woman in islam, etc)
 Science

Woman in islam( topic 5)

Holy prophet as a revolutionary ( topic 6)

Basic features of islamic ideology (quiz topic 7)

 Intro ( ideology denotes the principles, beliefs, ideas, opionions etc of individuals and
groups)
 Islamic ideology( way of thought recommended by islam, through teachings of
Quran and Sunnah)
 Basic characteristics (the divine ideology,simplicity and rationalism and practicalism,
the complete code of life, universality and humanism, permanence and change,
balance between individual and society, unity of matter and spirit, a revolutionary
moment)
 Divine ideology(revealed by the creator himself, only deen revealed by Allah)
 Simplicity( islam is free from myth and theories, clear and simple, no superstitions
and beliefs, practical religion no such ritualism)
 Complete code( not confined to private life, complete code of lide, covers all aspects
of lide, guidance by Quran on social moral religious economic political legal
international national and many more fields)
 Universality (message of islam for entire mankind, etc)
 Permanence (islam focuses on modern new problems and solves them in realistic
ways, ijma qiyas)
 Balance (cares for individual and society, everyone held accountable to Allah)
 Unity (no extremism, worldly things should be enjoyed in modest and non wasteful
amounts, )
