Course Outline

  1. Introduction to Islamic Economics:
    Definition, nature and theoretical foundations of Islamic Economics, conceptual differences between Islamic and Conventional (Neoclassical) Economics, Positive versus Normative Economics, the Islamic value system and economic behavior.
  2. Consumer’s Behavior:
    Absolute versus limited freedom, restricted set of preferences, distinction between lawful and prohibited activities (Halal- Mubah and Haram-Makruh), moderation in consumption, altruism, disposable income after charitable donations (Zakah, and Sadaqat), Utility function and consumer’s equilibrium in an Islamic framework.
  3. Behavior of the Firm:
    Business Ethics in Islam, Permissible and prohibited activities, Cooperation and Coordination for social advantage, behavior of the firm,
  4. Distribution of Wealth in Islamic Perspective:
    Functional versus personal distribution, distributive justice as the pre-requisite for social justice, Islamic emphasis on wider circulation of wealth, share of the poor and destitute in wealth of others, guarantee for basic needs and sustenance, importance of Zakah.
  5. Fiscal Policy and Role of the State:
    Sources of revenue and heads of expenditure of an Islamic state, the scope for taxation, Objectives of fiscal policy: Justice in distribution and elimination of poverty, Economic impacts of Zakah & Usher: the multiplier effect, efficiency, equity, growth.
  6. Economic Development and Planning:
    The extended role of an Islamic State, Economic growth as a component of the overall social development, Goals and strategies of development planning, emphasis on education and skill development, balance between moral and material growth, the problem of unemployment and remedial measures.
  7. Islamization of the Economy:
    Islamic revival movement, efforts towards Islamization of the economies in Islamic world with special reference to Pakistan, reports of the CII and implementation issues, the role of various organizations for coordination among Muslim countries: OIC and ECO, the role of IDB (Jeddah) toward Islamization of the financial system, issues in Islamic Economics and Finance.

Reference Books

  1. Khurshid Ahmed (Ed) Studies in Islamic Economics (1980). King Abdul Aziz University Jeddah and The Islamic Foundation UK
  2. Muhammad Arif (Ed) Monetary and Fiscal Economics of Islam: (1982). King Abdul Aziz University, Jeddah KSA.
  3. Ziauddin et al (Ed) – Money and Banking in Islam: (1983) King Abdul Aziz University Jeddah & Institute of policy Studies Islamabad
  4. N. Siddiqi, Banking without Interest & Issues in Islamic Banking (two Books), The Islamic Foundation, Leicester UK (1983)
  5. Ziauddin et al (Ed) – Fiscal Policy and Resource Allocation in Islam: (1983). King Abdul Aziz University Jeddah & Institute of policy Studies Islamabad
  6. Munawar Iqbal (Ed) -Distributive Justice and need Fulfillment in an Islamic Economy (1986), IIIE, International Islamic University, Islamabad
  7. CII Report Consolidated Recommendations on the Islamic Economic System , Council of Islamic Ideology, Govt. of Pakistan (1983, 1994)
  8. Umer Chapra, Just Monetary System (1993) IIIT New York and Islamic Research Institute, IIU Islamabad
  9. A. Manan and Economic Development in Islamic Framework (1996) Mehboob Ahmed (Ed). IIIE, International Islamic University, Islamabad.
  10. Akram Khan Issues in Islamic Economics (1983) Islamic Publications Ltd. Lahore.
  11. Muhammad Ayub, Islamic Banking and Finance: Theory and Practice (2002). State Bank of Pakistan, Karachi
  12. Taqi Usmani, The Historic Judgment on Interest by the Supreme Court (2000) Idaratul-Maarif Karachi
  13. Izzud-Din Pal, Pakistan, Islam, and Economics: Failure of Modernity (1999), Oxford University Press, Karachi
  14. N. Siddiqi, Dialogue in Islamic Economics (2002) Institute of Policy Studies, Islamabad.
  15. Imran Ashraf Meezan Bank’s Guide to Islamic Banking (2002) Dar-ul-Ishaat Karachi
  16. IRTI, IDB Islamic Economic Studies, the Quarterly Journal of the IRTI, Islamic Development Bank, Jeddah, K.S.A.