Muslim Economist, Ishrat Husain, Answers Criticism on Islamic Finance
Pakistan- Dr Ishrat Husain of Institute of Business Administration has said on Saturday (26/6/2010) that Islamic financial system can only ‘successful’ only after the whole Islamic teaching is implied in a country.
Speaking at a seminar of ‘Islamic Economics and Finance,” the former governor of State Bank of Pakistan tried to answer critics’ doubt that Islamic financial system ‘failed’ to have an impact in overcoming the global financial crisis.
“The system is only successful when the entire system was brought under the guidance of Islamic teachings,” said Dr Ishrat Husain who had once led the National Commission for Government Reforms from May 2006.
On his paper entitled “Islam and the Future of Economics,” Dr Ishrat Husain claimed that the West’s financial system is based on rampant corruption that is, of course, on the contrary to the Islamic financial system based on ‘integral parts of honesty, transparency, and truth.’
“The system is based on integral parts of honesty, transparency, and truth,” he said.
Further he talked about the onset of the global financial crisis in the end of 2009, in which he said that it was an ‘accumulation’ of resources by individuals.
Likewise, he told a lot about capitalism and socialism in a comparison to the Islamic financial system.
To him, both capitalism and socialism had failed to serve because in capitalism, resources are in a few hands and lacks of equitable system.
On the other hand, socialism had an equitable system but it is poor in efforts to distribute resources.
“It (Islamic financial system) promotes balance between market, family, and society, which prevents from unequal distribution of resources,” he said.
The experiment of Islamic financial system in Pakistan alone has been emerged since 2002, and was aimed at bringing equity where one protects the rights of others.
“The system is in its initial stages and we need to give awareness amongst the people about the system,” he added.(Islaminet/PKNews)
Speaking at a seminar of ‘Islamic Economics and Finance,” the former governor of State Bank of Pakistan tried to answer critics’ doubt that Islamic financial system ‘failed’ to have an impact in overcoming the global financial crisis.
“The system is only successful when the entire system was brought under the guidance of Islamic teachings,” said Dr Ishrat Husain who had once led the National Commission for Government Reforms from May 2006.
On his paper entitled “Islam and the Future of Economics,” Dr Ishrat Husain claimed that the West’s financial system is based on rampant corruption that is, of course, on the contrary to the Islamic financial system based on ‘integral parts of honesty, transparency, and truth.’
“The system is based on integral parts of honesty, transparency, and truth,” he said.
Further he talked about the onset of the global financial crisis in the end of 2009, in which he said that it was an ‘accumulation’ of resources by individuals.
Likewise, he told a lot about capitalism and socialism in a comparison to the Islamic financial system.
To him, both capitalism and socialism had failed to serve because in capitalism, resources are in a few hands and lacks of equitable system.
On the other hand, socialism had an equitable system but it is poor in efforts to distribute resources.
“It (Islamic financial system) promotes balance between market, family, and society, which prevents from unequal distribution of resources,” he said.
The experiment of Islamic financial system in Pakistan alone has been emerged since 2002, and was aimed at bringing equity where one protects the rights of others.
“The system is in its initial stages and we need to give awareness amongst the people about the system,” he added.(Islaminet/PKNews)













