Group assignment

Submitted to :
Dr Zohra Jabeen
Submitted by :
M Younas Khan C.No : 25
Zeenat Shah C.No: 46
Zia ! "s!am C.No: 4#
$%a& 'ahadur Khan : ()(



M'* +, semesters- .inan/e
Summary o0 the a!! topi/s o0 0irst term:
Economics Scenario in the new classical Frame Work
Because of the failure of economics system of the east in1980, the expert use market
forces to achieve the optimal economics growth. These forces were also failed.
apital system !rings poverty around the world and makes master slave relationship.
"reed for money created gap !etween the people, create self interest, no care for
weak etc
CONVENTIONAL DEBT : A RECIE FOR E!LOTATION
The !ased system is the ma#or hurdle in achieving distri!ution #ustices. $t cerate un
repaya!le de!t. $t make a class of people richer and leaving other poor. %hen people
taking interest !ased loan more !urden come on their shoulder and the poor !ecame
more poor and oppressed. &e!t lia!ilities are strike accounta!ility on the &ay of
'udgment. &ue to high interest !usiness failure, unemployment has increased. ()*
has right of issuing dollar which is accepta!le all over the world !ut if other currency
come the situation will !e not like this.
"ROWT# ER SE $A% NOT LEAD TO SOCIO &ECONO$ICS '(STICS
+a#or o!#ective of economic planning is to promote growth, development and
happiness !ut despite growth unemployment , half,fed and ill,treated. * num!er of
emerging are showing impressive growth take !ut economic great new li!eralism is
not serving welfare function. The solution lies in replacing risk free with related
capital and portfolio investments.
SOCIAL WALFARE ACTIVITIES OF T#E STATE
"overnment use huge amount of on social security sector due to the conventional
economic system the result are not fruitful. The interest !ased system cause
unemployment and in#ustices in assets and income distri!ution at national and glo!al
level.
T#E NEED OF T#E #O(R
rises has many reason !ut the main cause is interest which should !e vanish from
the world .The "-.T are doing in#ustices at inter and intra level. They should make
such a policy which provide #ustice and make people happy and which !ring peace,
happiness, welfare and prosperity !ut the main hurdle of the way is interest if it is
vanish than the pro!lem can !e solved.
ECONO$ICS AND RELI"ION:
* large num!er of scholars have !lamed the relative poverty of +uslims today on
their religion !eliefs. But some says that $slamic primitive growth. %hen a person
have commodity it is !y their effort or may !e inheritance which fulfill their need.
The $slamic system promotes e/uality and #ustice in wealth distri!ution.
+alaysia starts a policy !y T&T !ut fail than. They adopt the core value of $slam i.e.
#ustices with fairness. 0oly 1uran and )unnah of the 0oly 2rophet played a strategic
role in the development of human Being.
n mutual help and social welfare. the main principal is the prohi!ition of ri!a
3interest4,gam!ling, or other illegal contracts in trading or leasing etc.
ISLA$IC S#ARIA# AND ITS OB'ECTIVE:
)hariah is code of law or divine that regulates the conduct of human !eing in their life.
The primary o!#ective of shariah is the 0oly 1uran and sunnah of the 0oly 2rophet
3)*%4. -ther sources are $'+* , 1$5*) . the o!#ective of the shariah is significant it
determine the pro!ation or permissi!ility of any matter on the !asis of $'T$0*& and
1$5*). The primary o!#ectives )hariah is religion, life, family, property, intellect and
human and the secondary o!#ectives are #ustice and e/uality, social security, mutual help,
peace and security, cooperation, prohi!ition of evil, moral values etc.
W#% WE STD% ISLA$IC FINANCE:
$slam emphasi6e fair and e/uita!le distri!ution of resources and meeting the need of
people as part of religion worship and faith .when we esta!lish $slam fro the need of the
people can !e fulfilled, !ecause conventional economics system is #ust for profit earning
and $slamic economic system can !ring change.
T#E R(LE OF ISLA$IC ECONO$IST:
+any individuals play their rule and gave special importance to ethics and moral and
focus on #ustice, need fulfillment, e/ually freedom, growth and development etc .They
!elieve that state monopoly in commerce and agriculture or any industry destroyed the
economy.
ISLA$IC ECONO$ICS WIT# W#AT S#O(LD IT BE)
To understand the structure of economics we have two types of economics, economics
proper related with exclusively with scientific study of !ehavior and normative economic
policy recommendations must involve some value #udgment. $slamic economics is the
development and creation of wealth for the welfare of society. the feature of $slamic
economic and finance is socio economic and distri!ution #ustices.There is a concept of
6akat in $slam which is a!out 7.89.the $slamic economic system !ased upon mutual
helps and social welfare the main principle is prohi!ition of ri!a game of chance or other
illegal contract and trading or leasing etc.
RE"(LATION TRADE AND B(SINES:
$n $slam sale of market and freedom of individuals in !usiness and trade . capitalism with
a passive growth rate :sale usually for few individuals utter poverty the sale of
government should !e for the welfare of people second in the area of money !anking and
finance $slamic fianc; re/uired fear !usiness transaction i.e. fair pay and #ustice the
ummah the +uslims glo!al country is like human !ody when a part feel pain the !ody
feel pain.
ISLA$IC RINCILE CAN $A*E DIFFERENCES:
$slamic principle of economics and finance provide checks for all these facts. <ocus
on clarity and fair treatment for all and care of others.
FACTORS OF ROD(CTION IN ISLA$IC ECONO$IC S%STE$
Two kinds of people who have right to wealth
2rimary right, direct involvement in production process
)econdary =ight, owner to share wealth .
LAND
The mean of production which can !e rented or leased $ .e land !uilding,
house, etc .
LABOR
The exertion of !ody or mind like manager . *nd their reward is wages or
salary

CAITA>
Those means of production used in the production process like money of
owner, =aw material and reward is in the form of profit and loss .
ENTRERENE(RS#I
The entrepreneur is not separated from the factor of production it includes in
capital !ecause the a!ility to pay risk or loss the reward is in the form of profit or
loss.
Factors o+ ro,-ction in Con.entional Economic s/stem
Lan,
Those which are used as a mean of production like own land in reward may !e rent or
revenue.
La0or
*ny human exertion on the reward will !e in the form of wages
Ca1ital
The produce mean of production a commodity which as already under gone one
process of human production interest should !e rent of capital
Entre1rene-rshi1
$t !rings together ?factor of production !ear risk of profit and loss and sole property
owner of the !usiness.
Is it is necessar/ to ha.e +inance)
Intro,-ction
onvention economics system is the well developed deplane .many scholar conduct their
research in this deplane $slamic economics has come in the economy over the last three
and four decades and research is also small,+uslim economy are poor and initial stage
of development @so they are so show to good support to two $slamic social science @!oth
deplane are some !ut two the method to !e used for allocation all different sets.
The .ision
Avery activity has a purpose the purpose may !e to evaluate performance to the survival
of self interest and wealth maximi6ation , !odily pleasure and sensual satisfaction. The
goal of $slamic economics is human !roth hood and socio economics #ustices, full
employment, and social solidarity.
The mechanismB
There are three importance mechanisms that determine the use of resource in a society.
These are filtering, motivation, socio economics and political restriction.
Role o+ the worl,.iewsB
%orldviews tries to answer are a!out how the universe has come into existence, the
meaning and purpose of human life. The ownership and o!#ective of limited resources .
Than factor influences on human thought and !ehavior and lead to then difference
theoretical frame work and policy prescription.
The metho,:
The term method referred to the rules and produced of following a certain logic order.
Aconomics would accept status and positive science with no normative role to play.
The rele.ance o+ Islamic economics:
The vision, the mechanisms and the method of economics are all there fore the logical out
come of its worldview .0owever if there is a su!stantial difference ever in the world view
and the vision.
The Islamic worl,.iew:
onventualCs and $slamic economics are different in world view .the $slamic worldview is
not secularist, value,neutral, materialist. The fundamental !elieve is human !eing and
every thing create !y -ne and only -ne "-&.
The historical link:
$slamic economic had !een developed gradually. * large num!er of scholars make
valua!le contri!ution over the centuries.
Achie.ement2 Shortcomin3 an, +-t-re 1ros1ects:
$slamic economics need to collect relia!le data on num!er of economics varia!le. The
practical wisdom must !e a!le to explain the rise and fall of +uslims economics in the
past. $t may not !e possi!le to raise, +uslims societies at least in the near future ,to large
level that $slam demand.