Today, we are living in a world which is very different from that of some centuries ago. As the economic relations among men and countries expand day in day out, they are thus maximizing the number of challenges and problems also. To provide a better tomorrow and a good atmosphere to live for the upcoming generation of mankind the basic need felt by the intellectuals all over the world is to change some of the very disastrous and dangerous aspects of the worldly economic system. Capitalism in its basic form i.e. Free Market with lasses pass lasses fair theory as well as Socialism with its staunch ideology and harsh behavior are no more acceptable economic systems in the opinion of a great many economic experts and intellectuals of the time. Mankind is in need to have the several emerging economic problems fixed and have a just economic system where every single man should possess the basic needs of living a sound life; sufficient food to eat, pure water to drink and a suitable shelter to live in.
Islamic Economics which came into light very strongly in recent time undoubtedly have very powerful and targeted solutions for the miseries experienced by world and thus Islamic Economic theories can indeed play a very useful role to bestow mankind salvation from the spears-like connotations of Capitalism and thorns-filled dreaming beds of Socialism. The only work we, the Muslims especially and the rest of mankind commonly, should do to put these theories and practices in work and then they will give us their fruits. This paper aims to highlight some of the national and international economic problems and to explain the solutions given by Islam regarding economic policy making, and also the duties of government bodies and the duties of common man as individual.
Islam is the complete code of Life. It gives comprehensive economic system to the world Islam provides a best walfare social system in which basic need of life like home, food and cloth provided by Islamic government and Islamic Economic system. Wealth can't be stayed at once or some people who wants to become rich, Islamic Economic vision introduced a distributive mechanism that promote equal access and the equal opportunity for all citizen we can say that all individuals in the economy have equal opportunity to take part in economic activities to fulfil their basic needs.
Fiscal policy is important for economic development of any country.Islamic fiscal policy pursues defiance and peace so that the society live with a sense of security and preform dynamic economic activities.To maintain economic development and price stability is another imperative entity of fical policy.It reduces inequality of income and wealth in order to promote general welfare of the community.Welfare of public by providing education,health and social care is one of the major objectives of fiscal policy.There are several intrinsic shortcomings in the fiscal policy of Pakistan which are obstructing its economic development.It is a fact that we are suffering from economic instability for not practicing the Islamic teachings.If we sincerely act upon Islamic injuctions we can certainly achieve economic development.For an all.embracing economic stability and progress it is imperative to follow the economic injunctions in full.