An Analytical study of Financial System of Islam

Abstract

Zakat is one of the main pillars of Islam. It purifies the wealth and through the payment of Zakat, wealth is blessed by Allah. The purpose of Zakat is to take care of the needs of the poor. Who is entitled to receive Zakat? Zakat may be paid to those who fall into one or more of the eight Zakat-worthy categories designated by God in the Qur'an: 1. al-Fuqara, 2. the poor, 3. zakat collectors, 4. those People who accepted Islam, 5. Slaves and captives, 6. In debt, 7. In the way of Allah and 8. Travelers (At-Tawbah: 9:60). The system of Zakat and Usher in Pakistan was introduced by the Zakat and Usher (Regulation) Ordinance 1979. Zakat organizations have been established at national, provincial, district, sub-district and local (village/ward) levels. Thereafter the Zakat and Usher Ordinance 1980 were enacted on 20 June 1980. Provisions relating to zakat came into force immediately while that relating to Usher, which is Zakat on agricultural produce, was activated on 15 March 1983. Zakat and Usher Division of Ministry of Finance formulated the policies of the Central Zakat Council. It exercises control over the affairs Zakat and Usher in the country.