Contribution of Zakat in the Social Development of Pakistan

The main objective of this study is to provide a comprehensive description as well as evaluation of the emergence of zakat System. Simultaneously we have to analyze its contribution in the social and economic development in Pakistan. Consequently on the basis of this analysis, we may be able to establish a significant relationship between zakat and social/economic development. This system is to maintain economic balance in the economy simultaneously it has a negative impact on the concentration of wealth whereas it has positive impact on the circulation of funds. Through this mechanism every segment of the society can get the benefit. It is assumed that zakat is an antipoverty instrument. Findings of this study reveal this system guarantees that every individual will be able to get the basic needs of life. However, the basic difference between zakāt and other charities is that it stands obligatory along with other voluntary sadaqāh. Zakāt enables the poor segment of the society to participate in the economic activities and makes them a useful part of the society. Consequently they feel their importance as a part of the society. Through zakāt the poor segment of the society participate in the economic and social activities with full responsibilities.