Page 60 - CMA Journal (Mar-Apr 2025)

Focus Section

Islamic Fiscal Policy

The Islamic fiscal model emphasizes ethics, morality, and
truth in all financial dealings. It prioritizes social justice
and shared prosperity over profit maximization. A unique
aspect of this model is the prohibition of interest and the
institutional distribution of Zakat and Ushr. Every
economic activity is to be governed by equity, fairness,
and adherence to Islamic laws, ensuring that people have
access to essential services such as education, healthcare,
and justice.

Lessons from Global Economies
Quran and Sunnah. Furthermore, the Principles of
A closer examination of developed countries shows that, Policy—particularly Sections 37 and 38—highlight the
despite not being Islamic nations, many have need to promote social justice, eliminate social evils, and
unknowingly adopted Islamic economic principles. Most advance the social and economic well-being of the
of these countries maintain very low interest rates, and people in line with Islamic jurisprudence.
although they do not implement Zakat, they support the
Given these constitutional commitments, Pakistan’s
poor, elderly, and unemployed through subsistence
economy is inherently meant to be guided by Islamic
allowances and welfare programs. These practices reflect
principles. However, consistent deviation from this path
Islamic values and contribute to their prosperity.
has contributed to the current economic, political, and
Ironically, it is often non-Muslim countries that benefit
social crises. There is a pressing need to uphold and
from the economic wisdom embedded in Islamic
implement these constitutional obligations.
teachings.
Section 29(3) of the Constitution requires the President,
Trust and Faith
in relation to the Federation, and the Governor of each
Trust and faith are the cornerstones of personal and province, in relation to provincial affairs, to prepare and
societal integrity. Trust builds strong relationships, present an annual report to the National or Provincial
loyalty, and dependability, as observed in many Assembly on the observance and implementation of the
traditional markets where verbal agreements are Principles of Policy. Section 30 further places the
honored. Faith fosters hope, resilience, and motivation, responsibility for implementation on every organ and
driving individual and collective progress. authority of the state, as well as on individuals acting on
behalf of the state.
Unfortunately, our society today struggles with both
trust and faith. While we believe that Namaz (prayers) and It is the foremost duty of the nation's leadership to act
Roza (fasting) lead to forgiveness and paradise, we often upon these constitutional provisions—ensuring justice,
neglect the equally important teachings on honesty, uplifting the poor, fostering resilience, and liberating the
fairness, and truth in daily dealings. This lack of practical country from dependence on external lenders.
faith in economic and social principles has contributed to
No nation—Muslim or otherwise—can achieve
our current challenges. True prosperity requires building
sustainable prosperity without embracing the economic
trust among one another and having unwavering faith in
principles rooted in Islam. These are universal truths
the guidance of the Quran and Sunnah.
aimed at the betterment of humanity. Prosperity stems
from faith, hard work, and sacrifice. Without these
Conclusion:
elements, any nation risks becoming dependent on
The very foundation of Pakistan rests on the Islamic institutions like the IMF.
creed. At the time of its creation, the people envisioned
There is no need to reinvent the wheel. The Constitution
a nation where Islam would prevail and its teachings
of Pakistan already provides a comprehensive
would shape a model Islamic state. To fulfill this
framework—what remains is its sincere implementation.
aspiration, the Constitution of Pakistan embodies the
core doctrines of Islam. About the Author: Syed Shamim Ahmed is a Fellow member of
ICMA. He retired as General Manager Finance from the Karachi Port
The Preamble affirms that sovereignty belongs solely to
Trust (KPT) where he served for around 22 years in various positions.
Almighty Allah, and it mandates the observance of He was also a member of the Karachi Dock Labour Board for 7 years.
principles such as democracy, freedom, equality, After earning his MBA from IBA Karachi, he began his career at
tolerance, and social justice—as enunciated in the Holy Citibank before moving to Awami Autos (now Pak Suzuki).
58 ICMA’s Chartered Management Accountant, Mar-Apr 2025