An Evaluation of Pakistan’s Kissan Card in Relation to Maqasid Al Shariah

Shahzaib; Dr. Farooq Hassan

doi:10.5281/

Authors

Shahzaib Research Scholar, Islamic Learning Department, Faculty of Islamic Studies, University of Karachi, Pakistan Author
Dr. Farooq Hassan Professor, Islamic Studies, Department of Essential Studies, NED University of Engineering & Technology, Karachi Pakistan Author

DOI:

https://doi.org/10.5281/

Keywords:

Maqasid al-Shariah, Kissan Card, Islamic Agricultural Finance, Shariah-Compliant Economy

Abstract

Pakistan's agricultural sector provides about 23.5% contribution to the country's GDP and employs around 37% of the country's total labor force. The problem of financing in this sector is very deep and only about 15-18% of the farmers are able to secure formal credit financing; the remaining farmers were totally dependent on informal money-lenders who are lending money at an annual interest rate from 25 % to 100%. The financing practice of Pakistan farmers is generally opposite to Islamic economic practices and is highly destructive in nature. As the country attempts to adopt a Shariah-compliant economic system, this study seeks to critically evaluate the CM Punjab Kissan Card in light of Maqasid Al Shariah and analyze whether this agricultural financial product complies with the prohibition of Riba, as well as how it fits within the theoretical framework of Islamic finance contracts. The research illustrated that Kissan card is quite compatible with the objectives of Maqasid (Hifz al Din and Hifz al Mal). In the light of Islamic economic development of Pakistan it can be regarded as a welfare based Shariah compliant product.