COMPARATIVE ANALYSIS OF SOCIO-ECONOMIC DEVELOPMENT OF ISLAMIC APPROACH OF ECONOMY AND CAPIATLIST APPROACH OF ECONOMY IN PAKISTAN

Abstract

Economic System of Islam refers to the guidelines of Quran and Sunnah. It is based on the principles of human brotherhood, social and economic justice, proper circulation of wealth and individual freedom related to social welfare. Pakistan being an Islamic State, must have economic system according to the principles of Islamic Laws (Shariah).Currently the economy of the country is functioning on the Interest-based system. It needs to be reviewed and replaced according to prin- ciples of Islam. The purpose of the study was to review the socio-economic devel- opment of Islamic approach of economy and capitalist approach of economy. Two major research questions were raised. The scope of the study was limited to Islam- ic approach of economy and capitalist approach of economy in Pakistan. In-depth analysis of the literature was done. Qualitative research design was adopted. Sam- ples were drawn through purposive sample design. The samples of books, Quranic Verses, and Ahadith were drawn alongwith the sample of experts on Islamic and Capitalist economy. Most of the sources to conceptualize the concepts of Islamic teachings are found in the Holy Quran, Ahadith (Traditions of the Holy Prophet Hazrat Muhammad (S.A.W.S), the books and Articles of the eminent scholars. Social, economic and ethical values relating to Capitalism, found in the books and Research Papers. Pakistan being an Islamic State, must have economic system.