23. Islamic Economic System (Riba and ways of trade) Course Instructor Islamic Studies: Mufti Omer Rafique

7.INTEREST: In Islamic economic system, Interest (usury) is not allowed. Interest means capital without physical or mental labor. Quran says: “Allah permitted trade and forbidden interest (usury)”. The difference between interest and profit is that: (a) in case of interest, there is no chance of loss but in case of profit, there is a chance of loss. (b) interest is fixed but profit is not fixed. (c) profit required initiative, efficiency and labor but interest does not required anything (d) in case of interest you know your return but in case of profit you have to work for your return.

8.PROCEDURE OF TRADE & BUSINESS: Every business and trade can be started. In socialism & capitalism. Holy Prophet (SAWW) has said: “Truthful and honest merchant and traders will be accompanied with prophets and martyred on the day of judgment.”

9.CLASS STRUGGLE: Islam is opposed to class struggle, it means conflict/dispute between the owner of the industry and labors. In capitalism, there is a concept of labor union because in this system the owners does not pay the rights but in Islam there are many orders for the rights of labors therefore, Islam is not giving permission for the labor unions as in Islam the owners and labors are equal as human beings. Quran says: “And hold fast altogether the rope of Allah and be not divided”

10.STRUGGLE FOR ECONOMY/EARNING/SUSTAINANCE: In Islamic economic system everyone has to work for his livelihood, beggars who are physically fit are not liked. Holy prophet (SAWW) has said: “The upper hand is better than the lower hand”. Again he said: “Legal earner is beloved of Allah”. Those who are not able for their earning, it is the duty of government to provide the basic requirements of the public. As food, cloth and shelter. Hazrat Umer Farooq has said: “If any dog dies on the side of the river of Dajlah due to hunger, I would be responsible for his death”

12.PROCEDURE OF INDUSTRY: 11.PROCEDURE OF LAND: In Islamic economic system the surplus land which is cultivated or not cultivated would be taken by government and hand over to those who want to cultivate. Example of Hazrat Bilal (R.A). In socialism and capitalism. 12.PROCEDURE OF INDUSTRY: Industry is permitted. Should provide clean and lawful goods. Industry should be lawful.