KARACHI – Quran which is the divine revelation to humankind – brought to Muslims a pious and the best code of life to live by, and an economic system through which they can deal financially with each other. With this divine economic system, Muslims ruled the world successfully for 1000 years. With the eclipse of Muslim caliphate, and the occupation of the Muslim land by the West, the Islamic economic system faded away and was replaced by the western economic systems. The economic western systems however, whether were communism, socialism or even capitalism although carrying within logic economic principles proved ineffective. These views were expressed by former Dean faculty of management sciences, University of Karachi Prof. Dr. Abuzar Wajidi while addressing at the concluding ceremony of the Research Conference entitled “ Socio-economic transformation in the developed world: Challenges for Islamic region” jointly organized by Shaikh Zayed Islamic Research Center(SZIC), University of Karachi and KASBIT at SZIC Auditorium, Karachi University(KU).

He added that Capitalism, the major economic system adopted by most of the modern world today, is facing a major crisis. The American economy is not growing even half as quickly as it did in the 1990s. Japan has become the sick man of Asia, and Europe is sinking into a recession that has begun to slow down the German export machine and threatens prosperity.

Prof. Rais Alvi, Director KASBIT emphasized on the Islamic banking system and said that in the middle of the western global financial crisis, Islamic finance has become a dynamic, fast-growing global phenomenon. According to the IMF, there are over 300 Islamic financial institutions spread over 51 countries, plus well over 250 mutual funds that comply with Islamic principles. Moreover, Islamic banking has had growth rates of about 15 percent per annum over the past 10 years. Estimates are that the market should continue to grow considerably in the near future, given the amount of oil wealth in much of the Muslim world and a recent surge in demand for investment products developed according to the tenets of Sharia.

Acting Director SZIC KU Prof. Dr. Abida Perveen said that when Pakistan gained political freedom in August 1947, it inherited an economic and social infrastructure unable to meet the demands of the large influx of refugees from India. Five decades later, policies emphasizing public investment, subsidized credit and regulated private sector development have generated strong economic growth, but failed to implement successful social development. Over the last 50 years and more Pakistan’s economy, measured through its GDP, has grown by more than 10 times, an average annual growth rate of 5.1 percent. Rapid population growth, estimated to have averaged just under 3 percent annually, has resulted in real per capita increases of only 2.1 percent per year.