Ghazanfar Abbasi Lecture # 8 Islamic Study

Sir Raza Ansari

“Do not stop in life, before you reach at Destination”

(Ghazanfar Ali)

Financial system Islam

1. Economics
a. Resources: Land (all natural resources), Labour (all physical and
mental talents of individuals)
b. Production the action of making or manufacturing from components or
raw materials, or the process of being so manufactured.
c. Consumption:
d. Role of governance
Agrarian based economy. An agrarian economy is rural rather than urban-based.
It is cantered upon the production, consumption, trade, and sale of agricultural
commodities, including plants and livestock. Feudal system explode human
Capitalism Adam smith wrote a book on capitalism bring three important about
capitalism.
1. Income base
2. industrial revolution
3. Mercantilism
Communism: Sorry I missed due to network problem
Islamic revolutionary financial system
Islamic financial system is golden mean between two extreme,
Principles of Islamic financial System
1. Economic well being
We have indeed established you on earth and provided you with a means of
livelihood. ˹Yet˺ you seldom give any thanks (7:10)
He is the One Who created everything in the earth for you. Then He turned towards
the heaven, forming it into seven heavens. And He has ˹perfect˺ knowledge of all
things. (2:29)
Rather, seek the ˹reward˺ of the Hereafter by means of what Allah has granted you,
without forgetting your share of this world. And be good ˹to others˺ as Allah has been
good to you. Do not seek to spread corruption in the land, for Allah certainly does not
like the corruptors. (28:77)
2. Moral Norms
a. Beggars: Allah discourage professional beggars.
First of all, begging is a very bad way of earning money in Islam. Our
Prophet (pbuh) said: "A person begs and begs.. Eventually, he appears
on the Day of Judgment with no flesh on his face.", "A person who
begs money when he does not need, collects fire.
Ghazanfar Abbasi Lecture # 8 Islamic Study
Sir Raza Ansari

˹Charity is˺ for the needy who are too engaged in the cause of Allah to
move about in the land ˹for work˺. Those unfamiliar with their situation
will think they are not in need ˹of charity˺ because they do not beg. You
can recognize them by their appearance. They do not beg people
persistently. Whatever you give in charity is certainly well known to
Allah. (2:273)
b. Theftness
c. Bribery: The Messenger of Allah, peace and blessings be upon him,
cursed those who offer bribes and accept bribes in judgments.
3. Ethics of Trade: believers! Do not devour one another’s wealth illegally, but
rather trade by mutual consent. And do not kill ˹each other or˺ yourselves.
Surely Allah is ever Merciful to you. (4:29)
a. Mutual consent: Both parties must consent to their free will. Neither
party can be coerced or forced to sign the contract, nor must both
parties agree to the same terms and condition If one or both parties are
not serious, there's no contract.
b. Deceit: The action or practice of deceiving someone by concealing or
misrepresenting the truth.
c. Halal: is an Arabic word meaning permissible according to Islamic
Sharia law, and can refer to both goods and services acceptable to
Muslims.
d. Hoarding
4. Prohibition of extravagance: O Children of Adam! Dress properly whenever
you are at worship. Eat and drink, but do not waste. Surely He does not like
the wasteful. (7:31)
Pakistan export rice but In Pakistan waste rice that’s why rice prices are
increasing
5. Islamic sources of revenue or Taxation
a. Zakat
b. Jizya
c. Usher
d. Kharaj
e. Booty of war (Mal-E-Ganeemat)
f. Other Taxes Direct tax like Income tax not indirect tax like sales tax
6. Social Justice: Justice in terms of the distribution of wealth, opportunities,
and privileges within a society.
a. Baitul Mall: Its Baitulmal’ responsibility for distribution of wealth on
justice Islamic state is responsibility for poor human
7. Abolishment of Slavery in the name of livelihood
8. Circulation of wealth: In the Islamic system, distribution or circulation
of wealth occurs by itself without any request from the owner of the assets,
but returned to Islamic textual sources in the al-Quran and al-Sunnah. It’s
important for avoid inflation
9. Interest Free economy: An economic transaction would be considered riba-
free if it avoids multiplier mode of moneymaking, profit-taking and capital-
creation. According to Islamic economic rationality, labour is mightier than
capital because it creates economic value.
Those who consume interest will stand ˹on Judgment Day˺ like those driven to
madness by Satan’s touch. That is because they say, “Trade is no different
than interest.” But Allah has permitted trading and forbidden interest. Whoever
Ghazanfar Abbasi Lecture # 8 Islamic Study
Sir Raza Ansari

refrains—after having received warning from their Lord—may keep their

previous gains, and their case is left to Allah As for those who persist, it is
they who will be the residents of the Fire. They will be there forever. (2:275)
O believers! Do not consume interest, multiplying it many times over. And be
mindful of Allah, so you may prosper (3:130)
For Example: Kisi shaks se ya private ya government ya sami- government
bank say is shart per qarza laina keh qarz li gae raqam say ziyada ada kia
jaey ga, tu ye sood or haram hay.
Reasons of Riba
 Injustice
 Concentration
 Inflation
 Less Job opportunities
 Selfish
 Crimes
 Avoid religious activities
Karz-e-Hsna Example. Islamic Bank Jo Riba free bank ho, WO Bank Jo
charity karain or actual amount py asar andaz nah o wo Haram nh hy.
MCB Islamic Bank, Meezan bank.
Recommendation for Riba Finish interest Proper functioned Zakat
Ijtihad /Independent reasoning: Efforts to find solution of merging problems
according to Fiqh
Basics of Ijtihad
˹However,˺ it is not necessary for the believers to march forth all at once. Only
a party from each group should march forth, leaving the rest to gain religious
knowledge then enlighten their people when they return to them, so that they
˹too˺ may beware ˹of evil˺. Toubah 122
And those who strive for Us - We will surely guide them to Our ways.1 And
indeed, Allah is with the doers of good. (Ankaboot: 69)
Example
 Hazrat Abu Bakar Sidique RA Jihad for Zakat is Ijtihad
 Hazrat Omer RA Zakat on hours is Ijtihad
 Hazrat Ali was Chief Justice and in Hungriness days no penalty for Theft is
ijtihad
Conditions/Limitation of Ijtihad
1. Existence of Allah
2. Faiths/ Rituals
3. Teaching of Quran and Sunah
Islamic system of Justice
There are two essential components
Islamic Judicial system
Ghazanfar Abbasi Lecture # 8 Islamic Study
Sir Raza Ansari

System of social justice

1. Islamic Justice System
The judiciary is an independent administrative system in
the Islamic government designed to resolve all types of legal disputes among
various claimants. ... The Islamic system follows the directives of God and
the Prophet s from the Qur'an and the Sunnah (traditions).
Three Types of Court
1. Mazalim courts: Arabic dar al-mazalim. Courts that served as tribunals of
administrative law where the public directly appealed to the ruler or his
deputies against the abuse of or failure to exercise power by other authorities,
as well as against decisions made by judges
2. Justice Courts: Justice Courts have jurisdiction to hear misdemeanor
violations; criminal and civi
3. Mohtasib Courts
O you who have believed, be persistently standing firm in justice, witnesses
for Allah, even if it be against yourselves or parents and relatives. Whether
one is rich or poor, Allah is more worthy of both.so follow not [personal]
inclination, lest you not be just. And if you distort [your testimony] or refuse [to
give it], then indeed Allah is ever, of what you do, Aware (4:135)
Qualification of Qazi
 Qazi Must be a Muslim
 Qazi must be characterful
 Qazi Must be Wise
 Qazi Must be speedy justice
 Qazi must be able to give Ijma and ijtihad
Qazi Must be Muslim
But Imam Abu Hanifa says that a non-Muslim can be appointed over non- Muslims to
settle the disputes between them according to their religion
Qazi Must be Male
But Hanafi says (but not recommended) that except Hadood and Qisas cases,
women can be appointed as a Qazi
2. Social Justice
(a) Individual life Justice (b) Marital Life Justice (c) Justice for Wives
(d) Justice in state resources (e) Justice for global level