[Hazrat Yousuf AS] said, “Appoint me over the storehouses of the land. Indeed, I will be a good guardian, well knowledgeable.”
(Holy Quran 12: 55)
If I was the Finance Minister
Hazrat Yousuf AS who was a Prophet and also became a finance minister in his time. Here he mentions the two most important attributes to a successful finance minister.
1. So first it is necessary that one be trustworthy guardian of the wealth of the Ummah. It should be considered as an Amanah, as a trust and one must NOT breach that trust. He must not steal from it himself, nor let anyone else steal from it.
2. Second he must be very well knowledgeable of Islamic economics including many aspects of modern economics including zakat, ushr & taxes, interest (riba), paper money and sunnah money, IMF, World Bank, Central Banking, Federal Reserve Bank etc
Put the right experts at the job!
3. Slowly abolish riba (Interest)
- Ban all savings/ interest based accounts
- First for wealthy people with savings accounts more than 1-3 lakh rupees
- Also savings accounts of companies, institutions etc
- Because such interest increases the nation’s debts by billions
- Each millionaire gradually becomes a billionaire and every billionaire becomes a trillionaire just through these interest based savings
- And so the rich become richer and the poor become poorer
- Interest accounts for much of the yearly national budget
- Similarly prize bonds and their winnings should be prohibited as this again increases national debt and is a form of interest
- Same goes for treasury bonds/bills/certificates given on low or high interest rates
- Why should public pay for system based on riba which increases debt which in return increases taxes on the poor public. It becomes a vicious cycle which turn worse and worse.
- Why should the poor pay for increase in taxes due to interest based earnings by the poor?
Interest-free monetary policy and its impact on inflation and unemployment rates:
Riba, Car Leasing, Insurance & the Stock Exchange
Many Non-Muslim countries are now calling for interest free banking.
Japan has negative interest rates, meaning if one deposits money in a bank, one will have to pay the bank some percentage (he/she will NOT get any profit/interest for keeping money in the bank).
However, negative interest rates may also be eventually harmful for the economy in the long run
If these steps are taken, the money saved in this way can be diverted to build a dam in less than five years in sha Allah.
4. Ensure system of Zakat and Ushr collection is strictly enforced
- Ushr means one-tenth. It is a tax on agricultural produce. This should rake in billions of rupees or more
- Initially maybe enforced on the ultra-wealthy farmers who own many acres of agricultural land
- (Listen to Khutbaat Khilafah Part 3 by Dr Israr Ahmad on YouTube for details)
- This should be strictly enforced like taxes.
- People can be brought in or other checks and balances/measures to ensure zakat and ushr are enforced
- If Zakat and Ushr are strictly enforced and rightly utilized, these would in itself generate huge revenue collection and then most probably there would be no need for tax collection
- If the government collects zakat from all the billionaires and millionaires of the country alone, it would be estimated at (after conversion) about 6 billion DOLLARS over three years.Plus add the losses to the government due to interest on savings accounts, another 6 billion dollars (or more) can be saved over three years by abolishing Riba.6 + 6 billion dollars equals 12 billion dollars in three years.This is TWICE the amount we are begging from IMF with all the unfair conditionalities!And this is besides the amount that can be collected from Ushr.People ask us what is the alternative besides IMF.We tell them the alternative is the Islamic way, the only right way/path. As clearly shown above, it is the only right answer to all our economic problems.This is what the Holy Quran tells us repeatedly but we remain deaf, dumb and blind.اھدنا الصراط المستقیم
5. Collect Jizya
- It is a tax imposed by an Islamic State on its non-Muslim subjects in lieu of protection given to their lives and properties. The non-Muslims are called Zimmis or protected or covenanted people.
- Initially should be imposed on very wealthy Non-Muslims and poor people should be exempted initially.
6. Make sure all bank loans are returned.
- No loan write offs
- Maybe the interest upon them can be written off
- NO AMNESTY SCHEMES !!!
7. Adopt extreme austerity measures
- Simplicity
- Avoid luxurious life style of government servants
- Abolish lavish official residences of civil/ military bureaucrats
- Luxurious official vehicles be scaled down/auctioned
- Cut down on foreign trips and if they are necessary then cut down their expenditures
- PM House, governor houses, judges, bureaucracy and even unnecessary military expenditures especially by military personnel will have to be reduced
- Especially largely reduce luxuries of bureaucrats and ministers (luxurious foreign tours, ‘free’ luxury cars, petrol expenses etc etc)
- Keep ministries as minimum as possible
7b. Cut Down on Unnecessary Imports
- Including imported cars, SUVs, imported branded goods, expensive mobiles etc should be prohibited. These may make up 25 % of foreign loans!
8. Across the board accountability
- Get back looted money from everyone, If other countries can do it, why can’t we?
- Including money from off-shore companies
- Should NOT be selective
- Enhance powers of NAB; ensure it consists of fair personnel
- Ensure prosecution of known or suspected convicts by NAB and FIA; ensure they get due conviction and punishment (including return of money from corruption)
- Avoid any type of NRO or any other type of reconciliation with convicted crooks
- White collar criminals, worth over a billion rupees of unjustified assets, convicted by Supreme Court and High Courts should be immediately prosecuted
- Should be given non-bailable arrests warrants
- People should stop voting such known corrupt people into power and governments should stop giving them ministries and other high portfolios.
- ONE WILL HAVE TO BE VERY LETHAL AND BRUTAL AGAINST ALL CORRUPT CRIMINALS!
- Recent examples are Saudi Arabia and Mahathir Muhammad of Malaysia
- Retrieve all the stolen billions from people like Malik Riaz, Asim Hussain, Sharif family, Zardari, Jahangir Tareen, Aleem Khan etc etc
9. Ensure prevention and check of further corruption
- Prevent corruption in major as well as minor government contracts
- Prevent misuse of Development funds given to MNAs , MPAs or other people like district administration
- Check should be on ministers, MNAs, MPAs and other people in power, irrespective of party
- Recovery, fines, punishments including imprisonments should be enforced
- Ensure bigger fines and punishments for repeated offenders
- Other forms of corruption should be stopped e.g. Bribery, steeling electricity, gas etc
- Check for corruption in national companies like OGDC, PTV etc.
- Take strict measures to stop bribery especially in government sector
10. Ensure tax collection
- Approximately 0.15 Karor out of 10 karor Pakistanis pay taxes (mainly salaried class); this makes about 1.5 % of the population or even less. 80 % of the taxes are paid by the poor and middle class and very less is paid by the richest 1 %.
- However all Pakistanis including the poor pay indirect taxes on items of everyday use e.g. on petrol, gas, electricity, grocery items etc etc
- If the rich paid their due taxes, then there probably would be no need to inflict so many indirect taxes on the poor.
- Islam has allowed taxation on the rich under extreme circumstances and need BUT
- Basically tax should be taken in such a way/percentage that it should not be felt
- Avoid predatory taxation; Predatory taxation is taxation intended to cause harm. In general, high taxes are predatory because they attack the potential working capital of those who do not have access to the capital markets
- Avoid Excessive taxation
- Effects of taxation should NOT trickle down to the poor or middle class
- One should be extremely strict on non-filers/non-payers of tax and perhaps a bit lenient on regular tax payers as an incentive (e.g. on buying luxuries like cars)
- Enforce agricultural tax on multi-millionaires!
- Clean and empower the FBR
- Ensure taxes are collected from all taxable individuals especially ultra-rich wealthy businessmen
- Impose yearly tax upon wealthy dual national millionaire expatriates coming frequently to Pakistan (like Zulfi Bukhari and others)
- Other similar taxes on the wealthy elite of the country
- Decrease taxes on common daily-use items
- If gas, electricity etc prices have to be increased, then the prices/per consumption should be increased maximally for the RICH CONSUMERS and minimal or NO INCREASE for the poor consumers
- Incorporate people especially the rich businessmen into the tax circle by different means e.g. link with issuing of national identity card, passport, right to vote etc.
11. Catch and hang the Property Tycoons
Malik Riaz, Aleem Khan, Mansha Bumb etc will have to be captured, property and money confiscated and publicly hanged.
12. Catch the Big Fish in Big Financial Corporations and Bureaucracy
- Millions of rupees of corruption by the bureaucracy continue unabated
- Millions of rupees of corruption should be retrieved from big financial corporations e.g. Engro, Fauji fertilizer etc
13. Stop money laundering
- Millions of rupees sent illegally abroad
- This should be strictly checked
- Criminals should be given time period for recovery, money taxed and even confiscated after deadline.
- Conviction rate of financial criminals in Pakistan is 5-6 %, while in Singapore, Malaysia etc it is above 90 %.
14. Increase exports and decrease imports
- For example, Pakistan now has enough oil discoveries that little import is now required and even oil can be exported
- Recent oil discoveries near Iran border said to be more or equivalent to Kuwait oil reserves
- Improve local products so that they can be made excellent for export purposes
- Drastically decrease import of unnecessary items like cosmetics etc
Details here :
15. Ensure Price Control Through Good Governance
The middle man (trader, mafia etc) is buying commodities like tomatoes at very low prices (e.g. 70 rupees / kg) and selling them in the market at very high prices (250-300 rupees /kg or even more).
This is really poor governance. Government MUST ensure price control for the financial welfare of the public.
Price Control in an Islamic Economy (Fiqh point of View)
16. Microfinance schemes & Improve Business
- For starting small businesses.
- Interest free loans should be given
- Create other opportunities for improving Businesses
- Encourage foreign investment
17. Improve industry
- Improve agriculture industry
- Improve quality of exports
- Get rid of toxic Genetically modified foods injurious to health and disastrous to agricultural industry
- Improve other industries
18. Avoid IMF One should NOT be an IMF Loyalist (meaning Zionist loyalists).
- One should NOT be another economic hitman of the Zionists
- Read the book ‘Confessions of an economic hitman’ by John Perkins available free online to understand
IMF and World Bank: The Evil Web of International Bankers
- We should know that international Zionist bankers have been in control for so long now: the Rothschilds, Rockefellers etc. They control the USA through Federal Reserve, they own the World Bank, IMF etc. They control and own the central banks in every country except a few (Iran, Syria and Cuba)
Why Paper Money is Essentially Haram (Forbidden)
- So avoid loans as much as possible
- Ishaq Dar also issued bonds and took loans. What is the difference?
- One can read following book for more details:
- ‘New Confessions of an Economic Hitman’ By John Perkins (PDF freely available online)
19. ASK FOR A DEBT AUDIT & Get out of the Debt Trap
A debt audit is a public, participatory and comprehensive assessment of a country’s debts; details here :
http://www.cadtm.org/What-is-a-debt-audit-and-how-might
Tell the IMF etc that we are unable to give you the money;
Take a strong stand like Argentina, Ecudaor that we cannot return the loans that have been contracted for the benefit of a few (e.g. rich political elite of the country)
- Leader of Ecuador did this and 85 % loans were dropped!
Get out of the Debt Trap
By joining “Committee for Abolition of Illegitimate Debt”
Around 70 nations have joined this committee and has helped 4 nations to get rid of their debt. Ecuador refused to return 87 % of its loans!
Tell all the money lenders IMF, World Bank that we will not be returning interest on any loans. For the survival of Pakistan; for Pakistan first, Islam first policy. Otherwise the interest will keep on building and we will never be able to return it.
20. STOP Devaluation of the Rupee!
This should be avoided as much as possible or otherwise one may have to go on to last few steps mentioned in this blog. Devaluation only worsens the vicious cycle by increasing debts, increasing inflation, decreasing growth, increasing interest rates etc.
21. Avoid Privatization of State Institutions
- One should NOT privatize state institutions.
- This includes privatization of PIA, railways etc. They should NOT be privatized. These should be improved and made profitable
22. Encash Natural Resources
- Try to get sole ownership of the gold, coal, oil and other luxuries found in Baluchistan and other areas as soon as possible
- Best example is the Reko Diq gold and copper mine worth billions of dollars
- The Thar Coal Project
- Numerous New Oil and Gas Discoveries etc etc
- Make most financial use of these resources
23. Convince people to be a Patriotic Pakistani
Convince people to (and maybe give some incentives/honors)
- Buy Pakistani products
- Increase foreign remittances to Pakistan in Pakistani banks
- Invest in Pakistan
- Bring their overseas wealth to Pakistan (especially PTI MNAs and workers
- Open private schools, hospitals, universities etc so to create jobs, provide education and health
- Other welfare work for Pakistan like Mr. Edhi did
- Telethons and other appeals for funds, charity etc from home and overseas Pakistanis, Muslims etc
- Other miscellaneous philanthropic work for the country
24. Increase Coalition Support Fund (CSF)
- Pakistan should increase coalition support fund from USA in its tremendous support on the war on terror.
- We have lost around 100,000 lives in this war and continue to do so and suffer loss from infrastructure health (from injured and sick armed and civilian personnel) etc
- Try to get remaining CSF dues at the highest level even if we have to go to an international court
25. Drop the dollar and Rothschild Owned Central Bank
- As a last resort these steps may have to be taken in the near or long future
- Similar steps are being taken by Iran, Turkey, China, Russia and other countries
- At least do NOT cause an unnecessary decline in the rupee
26. Throw away paper/digital currency and Revert Back to Sunnah Money
This should have been at the top, but due to existing circumstances, it seems a distance future and impossible with the modern Gog and Magog. One should revert back to dealing in gold, silver and barter system (the Sunnah method).
Many countries are on the verge of dropping the dollar in the next 10-15 years.
Why Paper Money is Essentially Haram (Forbidden)
Finally a Muslim leader has spoken on the world stage in front of Muslim leaders of reverting back to Sunnah Islamic Money i.e. Gold Dinar, Silver Dirham and Barter trade:
27. Get Politically and Financially Closer to Russia
Pakistan will slowly have to move away from USA, get rid of Bretton Wood Agreements/Institutions and move closer to Russia, with whose Ultra-Orthodox Christians Muslims will make End Time Alliance.
Russia is also on the brink of dropping dollar and starting dealing in gold. For more details:
Muslims & Orthodox Christians- A Truce in the Making
There may be many other measures like improving tourism industry, increasing foreign investments (with help of law enforcement agencies) etc
Summary : Islamic Principle of Economics: Money should be kept in circulation.
Also read:
Solutions to Pakistan’s Bleeding Economy in Medical Terminology
And Allah knows best!
Masha Allah
Very interesting and informative article. May ALLAH give you more efforts for doing such impressive job. Thanks
regards