Welfare economy based on Islamic principles offers an alternative to Riba-based system

Landmark report titled ‘Islamic Social Finance for Social Protection in Pakistan’ was launched at an event held at IPS on 17 March 2023. The report was the result of a collaborative effort between Institute of Policy Studies (IPS), the Council of Islamic Ideology (CII), and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH. During the launch, Dr. Atiquzzafar emphasized the potential of a welfare economy based on Islamic economic principles as a viable alternative to the Riba-based system. He cited the example of Malaysia, where Islamic social finance tools have been successfully adopted to ensure social protection for the people. Dr. Atiquzzafar also suggested that the Pakistani government should consider the models of such countries and develop an economic fiscal system that prioritizes social welfare, given that the collection and disbursement of Zakat is the state’s responsibility.