Setting the Stage

Ishrat Husain, IBA CEIF

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Submission Type

Inaugural Session

Abstract/Description

  • Capitalism has created efficiency but also generated inequities at the same time so it’s not suitable for general prosperity. On the other hand, socialism has failed as it didn’t generate wealth owing to perverted incentive structures, but they did achieve their objective of creating equity.
  • Islamic Finance provides an alternate as it combines the features of capitalism (as production, distribution and trade are in hands of private sector and with the right regulation of markets, it generates efficiency) and socialism (by means of instruments for equitable distribution of income & wealth e.g., Zakat, Usher, Waqf as well as the Islamic Banking System, wherein we have risk sharing and asset-backed credit giving equal opportunity of borrower & creditor). The combination of these two systems overcomes difficulties of opposite systems providing an alternate system that is sustainable for global prosperity.
  • Pakistan can work towards this system to create an example for the world and for that it needs a societal transformation wherein the society as a whole need to work on the teachings of the religion and implement those in their day-to-day dealings.
  • This forum provided by WIFF is an attempt to find the pathways leading to creating such an exemplary system in Pakistan so it can be demonstrated to the rest of the world.

Location

Movenpick Hotel, Karachi

Session Host

Mr. Muhammad Raza, Customer Support & General Services, Meezan Bank Limited

Start Date

30-5-2022 9:11 AM

End Date

30-5-2022 9:15 AM

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May 30th, 9:11 AM May 30th, 9:15 AM

Setting the Stage

Movenpick Hotel, Karachi

  • Capitalism has created efficiency but also generated inequities at the same time so it’s not suitable for general prosperity. On the other hand, socialism has failed as it didn’t generate wealth owing to perverted incentive structures, but they did achieve their objective of creating equity.
  • Islamic Finance provides an alternate as it combines the features of capitalism (as production, distribution and trade are in hands of private sector and with the right regulation of markets, it generates efficiency) and socialism (by means of instruments for equitable distribution of income & wealth e.g., Zakat, Usher, Waqf as well as the Islamic Banking System, wherein we have risk sharing and asset-backed credit giving equal opportunity of borrower & creditor). The combination of these two systems overcomes difficulties of opposite systems providing an alternate system that is sustainable for global prosperity.
  • Pakistan can work towards this system to create an example for the world and for that it needs a societal transformation wherein the society as a whole need to work on the teachings of the religion and implement those in their day-to-day dealings.
  • This forum provided by WIFF is an attempt to find the pathways leading to creating such an exemplary system in Pakistan so it can be demonstrated to the rest of the world.