copy of good economy

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    Issue to be discussed

    The state of economy after 60 yearsThe role of the governmentGovernments proactive Fiscal Policy

    Eradication of ZulmConcept of Taxation in IslamBait-ul-Maal Subsidy Powerhouse

    Inflation controlPro-employment policiesPro-development policies

    Monetary policies

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    What the Quran DECLARES (4:59):

    Verily! Allah commands that you mustrender back the trusts to those,

    to whom they are due;and that when you judge between men,you judge with justice.

    Verily, how excellent is the teaching which He(Allah) gives you!

    Truly, Allah is Ever All-Hearer,

    E li hm n f i

    Ayah

    ignoredfor

    centuries!

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    Governments Role To provide & facilitate in the peoples

    interest, as ordered by ALLAH

    Build economic environment

    Provide ALL kinds of safety

    Implement Shariah with enforcement !

    Seek the Help & Guidance of ALLAAH

    Responsibility must be answered for!

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    Common Government Satanic Practices

    All injustices in the name of ISLAM

    Intention: to please other than ALLAH

    Excessive taxes & inefficiencies

    Excessive luxuries/protocols

    Blatant ignorance

    Leaders right to always rule = BEST Decision

    Criticism intolerable = Punishable !

    MUST leadwith best

    example !

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    Pro-active Governance

    20% direct influence on economy (C+I+G+[X-M])

    Maximize GDP

    Pro-competition

    Anti-Monopoly

    Enhancing productivity & efficiency

    What should the tax rate be ?

    ComparePakistan &

    Japan

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    Erradication of Zulm - Injustice

    Eradication of all un-islamic practices &injustices

    Lawful dealings only (ban all Satanic trades)

    Avoidance of Gharar (uncertainties)

    Eliminating hoarding, shortage, monopolies

    Cheating & fraud totally unacceptable

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    Taxation in ISLAM

    100% taxation ?

    0% taxation ?

    What should the tax rate be ?

    What should tax revenue be used on ?

    The more the tax, the more theinefficiencies, corruption, luxuries &

    rotocols

    Zakat is nottax

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    Bait-ul-Maal Subsidy Power House

    Subsidy is an integral component

    Strategic use of subsidies

    Subsidy on core consumer items

    Effect of subsidy on technology

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    Receivers of Zakat

    PoorNeedyTravellersTo reconcile hearts towardsislam (Dawah)

    To spread Islam (Jihad)Collectors of ZakatFreeing slavesDebtors

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    Sadaqah-Charity

    A religious obligationchanging humanities attitude

    towards the have -nots

    The concept of saving =Sharing ?

    The concept of wealth

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    How can a tax-free, subsidy-basedeconomy survive ?

    By efficient management of naturalresources (oil, gas, chromite,

    marble, precious stones, etc)

    If no natural resources, must be

    creative & innovative (Coke/Pakola,medicine, handicraft, hand madewonders, etc)

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    Pro-employment & Pro-investment

    Problem of unemployment, over-employment, &national inefficiency

    Converting population into skilled-labour

    Nurturing & retaining human capital

    Investment in infrastructure -> Nation building

    Real investment in evolving military assets

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    Monetary policy ANTI-inflation

    Biggest note ?Interest rate ?

    Restrict money supplyInvestment in real industry

    DEFLATION ??

    Which is more powerful Fiscal orMonetar ?

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    How did U$ get out of the Great Depression?

    Stock market crashSevere droughtHigh unemployment (30%)

    High InflationSocial unrestIncrease in organized crime

    Fear of spreading communismDwindling economyCapital flight

    Banking system failed

    Isnt thissituation

    similar to the

    currentPakistani

    economicdisaster ?

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    Pro-Active Fiscal PolicyMaximizing GDP (Investment, Production, Export), Minimizegovernment spending on luxuries

    Tax rate ~ ZEROReal use of Bait-ul-Maal (Zakah Fund, Sadaqah Funds, resourceharvesting/mining)Subsidization of all core consumer items (wheat, rice, sugar, petrol,gas, electricity, cement, plastic, metal, wood, etc)

    Education 100% FARDTransforming population into labor forceWidely dispersed vocational training institutes, avoid non-senseindustriesNurturing & retain human capital

    Promote permanent residency (only temporary travel)Curb capital flight, pro-investmentStrategic employmentPro-competition, anti-monopolyBuild infrastructure (roads, electricity, gas, water, education, health,etc)

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    Trade creates surplus

    Unlike RIBA, trade createssurplus (money)Compare with RIBA example:

    Riba-free loan Raw->supplySajid 1,000 Fishes Earning

    profit to payNavid 1,000 Farms interest-free loan

    Farid 1,000 Fruit Jam

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    Future of Islamic EconomyAll other economies have failed!

    No economy has performed as statedtheoretically

    Human made economies have evolved,adapted and failed

    Islamic economy has always succeededwhen applied