copy of good economy
TRANSCRIPT
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Issue to be discussed
The state of economy after 60 yearsThe role of the governmentGovernments proactive Fiscal Policy
Eradication of ZulmConcept of Taxation in IslamBait-ul-Maal Subsidy Powerhouse
Inflation controlPro-employment policiesPro-development policies
Monetary policies
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What the Quran DECLARES (4:59):
Verily! Allah commands that you mustrender back the trusts to those,
to whom they are due;and that when you judge between men,you judge with justice.
Verily, how excellent is the teaching which He(Allah) gives you!
Truly, Allah is Ever All-Hearer,
E li hm n f i
Ayah
ignoredfor
centuries!
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Governments Role To provide & facilitate in the peoples
interest, as ordered by ALLAH
Build economic environment
Provide ALL kinds of safety
Implement Shariah with enforcement !
Seek the Help & Guidance of ALLAAH
Responsibility must be answered for!
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Common Government Satanic Practices
All injustices in the name of ISLAM
Intention: to please other than ALLAH
Excessive taxes & inefficiencies
Excessive luxuries/protocols
Blatant ignorance
Leaders right to always rule = BEST Decision
Criticism intolerable = Punishable !
MUST leadwith best
example !
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Pro-active Governance
20% direct influence on economy (C+I+G+[X-M])
Maximize GDP
Pro-competition
Anti-Monopoly
Enhancing productivity & efficiency
What should the tax rate be ?
ComparePakistan &
Japan
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Erradication of Zulm - Injustice
Eradication of all un-islamic practices &injustices
Lawful dealings only (ban all Satanic trades)
Avoidance of Gharar (uncertainties)
Eliminating hoarding, shortage, monopolies
Cheating & fraud totally unacceptable
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Taxation in ISLAM
100% taxation ?
0% taxation ?
What should the tax rate be ?
What should tax revenue be used on ?
The more the tax, the more theinefficiencies, corruption, luxuries &
rotocols
Zakat is nottax
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Bait-ul-Maal Subsidy Power House
Subsidy is an integral component
Strategic use of subsidies
Subsidy on core consumer items
Effect of subsidy on technology
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Receivers of Zakat
PoorNeedyTravellersTo reconcile hearts towardsislam (Dawah)
To spread Islam (Jihad)Collectors of ZakatFreeing slavesDebtors
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Sadaqah-Charity
A religious obligationchanging humanities attitude
towards the have -nots
The concept of saving =Sharing ?
The concept of wealth
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How can a tax-free, subsidy-basedeconomy survive ?
By efficient management of naturalresources (oil, gas, chromite,
marble, precious stones, etc)
If no natural resources, must be
creative & innovative (Coke/Pakola,medicine, handicraft, hand madewonders, etc)
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Pro-employment & Pro-investment
Problem of unemployment, over-employment, &national inefficiency
Converting population into skilled-labour
Nurturing & retaining human capital
Investment in infrastructure -> Nation building
Real investment in evolving military assets
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Monetary policy ANTI-inflation
Biggest note ?Interest rate ?
Restrict money supplyInvestment in real industry
DEFLATION ??
Which is more powerful Fiscal orMonetar ?
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How did U$ get out of the Great Depression?
Stock market crashSevere droughtHigh unemployment (30%)
High InflationSocial unrestIncrease in organized crime
Fear of spreading communismDwindling economyCapital flight
Banking system failed
Isnt thissituation
similar to the
currentPakistani
economicdisaster ?
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Pro-Active Fiscal PolicyMaximizing GDP (Investment, Production, Export), Minimizegovernment spending on luxuries
Tax rate ~ ZEROReal use of Bait-ul-Maal (Zakah Fund, Sadaqah Funds, resourceharvesting/mining)Subsidization of all core consumer items (wheat, rice, sugar, petrol,gas, electricity, cement, plastic, metal, wood, etc)
Education 100% FARDTransforming population into labor forceWidely dispersed vocational training institutes, avoid non-senseindustriesNurturing & retain human capital
Promote permanent residency (only temporary travel)Curb capital flight, pro-investmentStrategic employmentPro-competition, anti-monopolyBuild infrastructure (roads, electricity, gas, water, education, health,etc)
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Trade creates surplus
Unlike RIBA, trade createssurplus (money)Compare with RIBA example:
Riba-free loan Raw->supplySajid 1,000 Fishes Earning
profit to payNavid 1,000 Farms interest-free loan
Farid 1,000 Fruit Jam
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Future of Islamic EconomyAll other economies have failed!
No economy has performed as statedtheoretically
Human made economies have evolved,adapted and failed
Islamic economy has always succeededwhen applied