Degree

Master of Science in Islamic Banking & Finance

Department

Department of Finance

Faculty/ School

School of Business Studies (SBS)

Date of Submission

Spring 2024

Supervisor

Dr. Irum Saba, Associate Professor & Program Director MS-IBF, Institute of Business Administration, Karachi

Keywords

Waqf, Social services, Sadaqah, Zakah, Islamic social finance, Faith-based organizationsWaqf, Social services, Sadaqah, Zakah, Islamic social finance, Faith-based organizations

Abstract

The failure of governments in developing countries, including Pakistan, to adequately address the socio-economic needs of their citizens amidst economic crises underscores the urgency of exploring alternative solutions. Islamic social finance emerges as a compelling avenue to alleviate poverty and enhance wealth management within Pakistan. Numerous studies have highlighted the diverse instruments of Islamic social finance employed by various organizations to deliver essential social services such as education, healthcare, economic empowerment, community development, and water and sanitation facilities to the underprivileged. Noteworthy Islamic Faith-Based Organizations (IFBOs) like Chhipa Welfare Association, Baitulmaal, Edhi Foundation, Saylani Welfare Trust, Alkhidmat, JDC Foundation, and Akhuwat are actively engaged in providing such services across Pakistan. This study aims to investigate the role of Islamic social finance (ISF) instruments, such as Zakah, Sadaqah, and Waqf, in the provision of social services by IFBOs in Pakistan. Specifically, it seeks to ascertain the efficacy of these services in poverty reduction, thereby contributing to a comprehensive understanding of their impact and potential for socio-economic development.

This study adopts a mixed-methods approach, combining field interviews with leaders of five IFBOs and a comprehensive questionnaire distributed to various IFBOs. A purposive sampling technique was used to select case study organizations. Data collected from interviews and organizational documents were analyzed using content and narrative analyses. Questionnaire data were analyzed using descriptive and inferential statistical analyses to understand the key factors influencing the impact of IFBO’s social services and to identify the challenges and opportunities within this sector. The findings aim to provide valuable insights into the effectiveness of Islamic social finance instruments in enhancing social service delivery and promoting socio-economic development in Pakistan.

Document Type

Restricted Access

Submission Type

Research Project

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