ISLAMIC FINANCE: A FINANCING ALTERNATIVE OR A COUNTERMEASURE TO CAPITALISM'S DILEMMA?

Authors

  • Anila Sultana , Lecturer, Department of Economics, Federal Urdu University of Science, Arts and Technology Karachi
  • Dr. Rizwana Jabeen Assistant Professor Department of International Relations Federal Urdu University, Karachi.
  • Qaiser Sharif lecturer, Department of Humanities, Nazir Hussain University, Karachi

DOI:

https://doi.org/10.46896/alazhr.v8i01.320

Keywords:

Economic Reform, Islamic Finance, Macroeconomics, Islamic Economics,

Abstract

The objective of this study is to present an economic justification regarding Islamic finance. It follows a straightforward methodology. It begins by identifying the main justification for Islamic finance by describing the economic commitments related to the desired reasoning in finance, macroeconomics, money, price and banking theories. The author provides a concise overview of his notion for such an Islamic economic paradigm wherein Islamic finance can operate. When appropriately used inside the author's model, Islamic finance has specific advantages, according to the research findings.  As a result, Islamic finance can in this way be an applicant as a change plan for traditional finance. In today's market economies, it paves the path for considerable monetary reform. The findings are unique in that they contradict conventional wisdom and present a non-religious explanation for Islamic finance. The paper's first constraint is that all of Islamic finance's special benefits are exogenous to Islamic finance and financial institutions. As a result, they are unlikely to persuade such entities to follow Islamic finance precisely, without controller’s impedance to enforce rigorous adherence. The second constraint is the requirement for Islamic finance to establish regulatory systems and enabling institutional.

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Published

2022-06-25

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Section

Articles