Economy of Rayasat Medina
Prophet Muhammad (PBUH) created a unique system of economic and well-being with the guidance of Allah. The system ensured the welfare of human and paved a way for peaceful rise of humanity. Human dignity and social justice were key pillars. It also caters the needs of planet earth and environmental sustainability. Since then it has been dream, of every Muslim to re-establish the economic system for wider good of humanity. Quadi Azam Muhammad Ali had same dream and vision. On 1stJuly 1948, he explicitly explained his vision of economic system for Pakistan. He unambiguously, stressed for an economic system which must be built on the principles of Islam. He was convinced that Western Economic system cannot fulfil the dream of equality and happiness. He even went to say that the WW-I and WW-II were results of in-equalities of Western Economic System. He urged State Bank to present a system which can ensure the prosperity and equality of human being.
Unfortunately, after Quadi Azam Pakistan lost the track and took another way. Pakistan became a prominent player of Western Economic System. The words of founder of nation provedwere ignored and Pakistan lost the way of economic growth, development and prosperity. Pakistan, after 72 years of creation, has been stuck in web of problems ranging from financial to production. Poverty is on rise; food insecurity is increasing, and social fabric of country has been deeply damaged. However, the major victims are welfare and prosperity of common citizens. Despite all efforts of successive governmentseconomy is not getting back on track. Pakistan is struggling to find a way for future economic growth, development and prosperity. Today, the teachings of Quadi Azam seems more relevant for the recovery of economy.
Fortunately, after a long time, Prime Minister Imran Khan seems to be interested to follow the principles of Rayasat Medina and teachings of Quadi Azam. From the very first day of his government he emphasizes on the vision of State of Medina.
However, he is unable to translate his vision into reality. He is struggling to introduce different programs but the fundamentals of economic system of State of Medina are still a distant dream. He even could not introduce the basic concept of economic system. The first and foremost important principle of Islamic Economic System is elimination of “Interest (Riba)”. Allah has strongly rejected the Riba and it is only sin where Allah openly declare war. Allah says, “It is open war against Allah and Allah’s Prophet (PBUH)”. Now, being Muslim imagine, can we secure any good result by fighting with Allah and Allah’s Prophet (PBUH).
Prominent Western economists have started to criticize the neo-liberal order. Protuberant flaws in the neo-liberal order are Riba (interest) and theory of trickle-down effects along other factors
Unfortunately, Pakistan is fighting this war since the first day of its inception. Despite the clear vision and direction of Father of Nation we prefer to stick to this system. We always remained busy in presenting lame excuses. Even the government of Nawaz Sharif took stay order against the orders to implement interest free economic system in country. Musharraf government brought back the debate and delayed the implementation and started to introduce their own vision.
The government of Imran Khan does not seem different from past governments in this regard. Government is committed to Riba (interest). It is taking new loans on interest. It is going along the same old system and there does not seem any effort to change it. One becomes puzzled, how a government can claim to establish The State of Medina by ignoring basic element of state.
Riba free system has another relevance for PTI, as it advocates for “Insaf” “Justice”. Riba is termed as an act of injustice. It is being used to accrue benefits by exploiting the situation. It is also against the basic concept of kindness. Therefore, it is necessary for PTI to tackle issue of Riba for ensuring its vision of justice.
PTI government has two options now, either implement the Islamic economic system to materialize dream of state of Medina or remain busy in playing with prevailing neo-liberal economic order. However, Imran Khan has to keep in mind that the neo-liberal order which was presented as solution for growth and development failed to realize the dream. Now world is suffering from multiple problems and many scholars blame the neo-liberal order. In-equality is on rise and even most developed countries have become victim of it. The richest and most powerful country on earth, USA, is now home to 43 million poor. In-equality is also triggering the racism, crimes and even terrorism in USA and across the world.
Europe also has become prey of in-equality and a big financial and economic crisis is looming on Europe. Greece has been extremely hit by crises. Italy also failed to avert the shocks. France is going through an extended streak of yellow vest protests. Although the states are trying to snub or water down the incidents, but they are unable to control it. Major reasons of these crises are blamed on the flaws of neo-liberal order. Prominent Western economists have started to criticize the neo-liberal order. Protuberant flaws in the neo-liberal order are Riba (interest) and theory of trickle-down effects along other factors.
These crises provide a good learning, if Prime Minister Imran Khan wants to learn. Economic system based on Riba (interest) or based on the neo-liberal order will not help Pakistan to overcome its problems. Pakistan will have to look back at the “principles of Economic System of State of Medina”.It was also dream of Father of the Nation. Father of nation stated, “We must work our destiny in our own way and present to the world an economic system based on true Islamic concept of equality of manhood and social justice. We will thereby be fulfilling our mission as Muslims and giving to humanity the message of peace which alone can save and secure the welfare, happiness and prosperity of mankind”.
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The opinions expressed in this article are the author's own and do not necessarily reflect the viewpoint or stance of SDPI.