Haider ali shah 6918

Abdul Fasieh 6775

Ahmer sheikh 6903
Waleed Saeed 6862

Presented To Sir Ikram Ullah

Role of state and public policy

 importance of rule and regulation

supervision of rule

enforcement of rules

From the writings of Adam Smith over two centuries ago, Western societies
realized that without laws and regulations and their supervision and enforcement, an
economy becomes akin to a jungle.
 BASIC ROLES OF THE STATE IN ALL ECONOMIC SYSTEMS

1. Establishing the legal framework and the rules and regulations of a

market economic system

2. Supervising and enforcing its rules and regulations

3. Affecting the allocation of resources in order to enhance economic

efficiency, widespread participation and prosperity, safeguard the environment and natural resources, and
generally reduce negative economic
externalities

4. Replacing the market in areas of natural monopolies (infrastructure and

national defense)
 Continue……

5.Developing programs that increase social welfare by providing social

services such as education, addressing gross income and wealth inequalities, and providing a social safety net

6. Formulating and implementing macroeconomic policies to maintain

economic activity and a high level of employment while keeping inflation
in check

7. Negotiating international economic and financial agreements with other

countries
Role of Islamic state fundamental of Islamic
finance by hafiz muhamad yasin
 Role of an Islamic state

 Legal authority from quran and sunnah.

 To enforce the law.
 invites human being to study and observe
 Then to restructure their lives according to the injunctions of shariah.
 Primary duty of state
Role of an Islamic state

 Distribution of justice
 For it
A. to motivate the individual via proper education, to realize the bitterness of poverty by spending a fraction of
his earnings
B. To enforce the system of zakat and ushur
Things to control

 The State has to be vigilant on hoarding, black marketing, creation of artificial scarcities and price hikes,,
smuggling etc. In addition the State has to abandon strictly the practices of gambling and interest-based
transactions, the sale of narcotics and other goods prohibited in Shariah.
 it leads to disorder and anechoic in the society
Hussein askari
Basic rule of Islamic economic system

 The role of state is on Islamic economic is that every one has equal access to resources.
 Distributive justice by Quran and Sunnah.
 Main objective is social welfare
 contract of mubayaá
 Equal right of people in society and in selection
 To achieve maqasid ul shariah
 In the Islamic conceptualization of humans’ ultimate goal and destination, economic life occupies a purely instrumental role.

 individuals are made accountable for the moral effects of

their social actions, including those in economic affairs, such that their own
inner personal-spiritual transformation and growth is bound to the progress
of the community

 The Quran and the traditions of the Prophet (sawa) make clear references
to the dual nature of competition and cooperation; that is, human beings can
cooperate and compete for good or evil, which leads to the integration or
disintegration of human society.
 the Quran declares:
Cooperate with one another unto righteousness and piety. Do not
cooperate with one another unto sin and enmity. (5:2)
POLICY INSTRUMENTS OF THE STATE IN
ISLAM

• The state is assumed empowered to use, within the limits of the Law.
• The collective duties is to ensure that justice prevails in all facets of social life.
• The state requires provision of education, skills, and technology to all.
 TAXES

 The amount of land is fixed, taxing it cannot distort supply in the way that taxing work or saving might
discourage effort or thrift.
 Property taxes may even restrain housing booms by making it more expensive to buy homes for purely
speculative purpose.
 It is the responsibilty of every person to pay tax because the government use these taxes on the country.
 MORE

 If taxes are insufficient to fund public sector projects, the state can also borrow.
 The government could also issue equity participation papers, instead of debt-based borrowing, to fund its
general expenditures in case of shortfalls in tax collection.
 The distributional implication of this policy instrument would further strengthen social solidarity