Islam is more diversified and dynamic religion and offers a complete economic system with giving

the authority to individuals to get reward of their productive efforts. In Islam powers are exercised
through the democratic process. Quran Says. “And they conduct their affairs by mutual consultation.”
So the head of Islamic state is bound to consult with Shura Assembly about the affairs of state.

PROVISION OF BASIC NECESSITIES OF LIFE

This economic system speaks about the common interest of society like socialism without the rigid philosophy
of common ownership. This is the primary duty of the Islamic state that it should provide the basic necessities
of life like food, clothing, shelter and education to every citizen living in the country.

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ENFORCEMENT OF ISLAMIC LAW

It is the duty of the state that it should enforce the laws of shariah in the country and taken care of economic
activity and justice in daily life, so that the citizens can lead their lives with peace and financial stability.

ECONOMIC JUSTICE
It is the duty of the Islamic state that it should provide equal chances of employment and economic
development to all the people irrespective of color and caste.

SOCIAL JUSTICE
All the citizens, rich or poor should be equal before the eyes of law. Courts should work honestly to provide
justice to the people.

UTILIZATION OF RESOURCES
It is the duty of the state to make full utilization of economic resources for the economic welfare of the people.
Stability in the Price Level: The state is responsible to maintain stable prices in the country. In this regard a
government can frame a fiscal and monetary policy.

ECONOMIC FREEDOM
In Islamic state everybody is allowed to adopt any profession or business within the law and it is the duty of
the state that it should give them full protection.
BILATERAL RELATIONS
Islamic economics advocate developing good relations with Muslim world in particular and other in general. It
should always cooperate with those who are right and serving for humanity.

ESTABLISHMENT OF BAITULMAL
The revenue and expenditure of the Islamic state is through baitulmal which is just like central bank of the
country. The items of revenue and expenditure of baitulmal are fixed in Islam.

COLLECTION OF ZAKAT AND USHER

In replacement of Tax system Islam gives The concept of Zakat. An Islamic State can collect the zakat and
usher from the citizens. It can also impose tax and borrow the money form inside and outside the country.

FARE DISTRIBUTION OF WEALTH

It is also the duty of Islamic state that it should enforce the fair distribution or wealth. Islam is against the
concentration of wealth in few hands.

DEMERITS OF ISLAMIC ECONOMIC SYSTEM

[linkunit]Islamic economic system based on the moral values and implementation is difficult. Calculation and
Collection of Zakar and Usar cann’t be verified and payer’s calculation is deemed to be true. Escape of the
responsibility of Zakat and UShar’s is easy.