CSS 2012 Solved Islamiat Past Papers | The Economic Rules of Islam
The following question of CSS Islamiat 2012 is solved by Miss Ayesha Irfan, the highest scorer in CSS Islamiat. Moreover, the question is attempted using the same pattern taught by Sir Syed Kazim Ali to his students, who have scored the highest marks in compulsory subjects for years. This solved past paper question is uploaded to help aspirants understand how to crack a topic or question, write relevantly, what coherence is, and how to include and connect ideas, opinions, and suggestions to score the maximum.
Question Breakdown
The examiner pondered the appropriate answer to the economic rules of Islam in the light of Social Justice. However, you must provide a detailed explanation of the relevance of Islamic economic standards in accordance with the Quran and Sunnah if you wish to perform exceptionally well in Islamic studies. Furthermore, if its modern significance was emphasized within the framework of Islamic Fiqh, people would have higher expectations for their answers.
Outline
1-Introduction
2-Explaining the economic rules of Islam in the light of Social Justice.
A-Wealth Redistribution and the Concept of Zakat
- ✓Definition and Importance of Zakat
- ✓Impact on Social Justice
B-Prohibition of Riba (Interest)
- ✓Islamic Financial Principles
- ✓Social Justice Implications
C- Fair Trade and Honest Transactions
- ✓Principles of Islamic Business Ethics
- ✓Impact on Social Justice
D-Private Property Rights with Social Responsibility
- ✓Responsibility in Wealth Usage
- ✓Social Justice Aspect
E-Work and Livelihood
- ✓Economic Productivity for Social Welfare
- ✓Rights of Workers
F-Social Welfare and Protection of Vulnerable Groups
- ✓Islamic Approach to Social Security with Historical Examples
- ✓Social Justice Impact
3- Conclusion
Answer to the Question
Introduction
Islam’s economic laws are firmly based on social justice, guaranteeing a reasonable and equal distribution of wealth while promoting social welfare and economic stability. Islamic economics, which has its roots in the Quran and Sunnah, strongly emphasises the sharing of wealth and forbids monopolies and other forms of exploitation like riba (usury). To help the poor and lessen economic inequality, the system promotes sadaqah (voluntary donation) and Zakat (obligatory philanthropy). Islam also encourages social responsibility, ethical commerce, and openness, ensuring that business operations support moral principles and the general well of society. The Islamic economic model provides a long-term framework for attaining societal peace and economic balance by combining justice, compassion, and responsibility.
Explaining the economic rules of Islam in the light of Social Justice
A-Wealth Redistribution and the Concept of Zakat
- Definition and Importance of Zakat
First of all, the key instrument for wealth redistribution and social justice, Zakat, is an obligatory pillar of Islam that requires Muslims to give 2.5% of their excess money to the underprivileged each year. Zakat promotes economic circulation and strengthens underprivileged communities by preventing money from concentrating on a small number of hands. For instance, the Caliphate of Umar ibn Abdul Aziz is a noteworthy historical example, where the efficient use of Zakat resulted in such economic abundance that it became challenging to identify qualified recipients. Similarly, organized Zakat systems in nations like Malaysia have substantially contributed to reducing poverty in the modern era by financing healthcare, education, and social welfare initiatives. Therefore, Zakat serves as a potent economic tool for fair wealth distribution and community well-being in addition to fulfilling a religious duty.
- Impact on Social Justice
According to worldwide economic research, wealth redistribution (Zakat) is essential for advancing social fairness since it lowers income disparity and raises living standards. A 2022 World Bank research claims that nations with successful income redistribution policies, like progressive taxation and social welfare programs, have more social mobility and lower poverty rates. For example, organized Zakat systems have significantly decreased poverty in Islamic countries. For instance, in Malaysia, Zakat-funded initiatives have contributed to a decline in poverty rates from 16.5% in 1990 to less than 5% in recent years. Thus, by reducing the gap between the affluent and the poor, these instances demonstrate how equitable wealth distribution promotes economic stability, lowers social discontent, and secures justice.
B-Prohibition of Riba (Interest)
- Islamic Financial Principles
Moreover, the Quran, which emphasizes economic justice and fairness, is the source of Islamic financial principles’ ban on riba (interest). In Surah Al-Baqarah (2:275), Allah expressly denounces riba, saying, “Those who devour usury will not stand except as stands one whom the Devil has driven to madness by (his) touch, but Allah has permitted trade and forbidden usury.” Additionally, in Surah Aal-e-Imran (3:130), “O you who have believed, do not consume usury, doubled and multiplied, but fear Allah that you may be successful.” These verses emphasize how interest-based transactions are exploitative and contribute to economic inequality and wealth concentration. Instead, Islam encourages profit-sharing schemes like joint ventures (Musharakah) and investment partnerships (Mudarabah) to guarantee equity in financial transactions. Thus, Islamic economics promotes a fair and reasonable financial system that puts the good of society above personal gain by outlawing riba.
- Social Justice Implications
Islamic finance’s ban on riba (interest) has significant social justice ramifications as it encourages fair financial possibilities and guards against wealth concentration and economic exploitation. Interest-based systems frequently result in debt traps, increasing the wealth disparity. According to a 2021 World Bank research, high-interest loans cause debt for more than 70% of low-income households in emerging nations, escalating poverty cycles. The profit-and-loss sharing mechanisms used by Islamic banking, on the other hand, have produced favourable economic results. For example, in Sudan, where Islamic microfinance is widespread, small firms that receive riba-free loans have witnessed a 30% rise in revenue, improving society’s welfare. Additionally, by offering morally sound, interest-free lending to marginalized groups, Malaysia’s Islamic banking industry, which expanded by 10% to 15% a year, has helped promote financial inclusion. These illustrations show how doing away with riba promotes economic justice, lowers poverty, and guarantees a fair financial system.
C- Fair Trade and Honest Transactions
- Principles of Islamic Business Ethics:
Furthermore, Islamic business ethics forbid fraud, deception, and manipulation and place a strong emphasis on openness, truthfulness, and equity in commercial transactions. “The honest and trustworthy merchant will be with the prophets, the truthful, and the martyrs” (Tirmidhi 1209) is one of the many hadiths in which the Prophet Muhammad (PBUH) emphasized these values. This hadith emphasizes how moral business conduct has a high spiritual standing. “Whoever cheats is not one of us,” the Prophet (PBUH) added, warning against dishonest trading (Sahih Muslim 102). These lessons guard against economic injustice and exploitation by ensuring that trade benefits all stakeholders equally. Islamic financial organisations uphold these values by using moral banking and investing procedures, encouraging social justice and trust in business dealings.
- Impact on Social Justice
By lowering economic inequality and promoting market trust, fair trade and ethical business practices significantly influence social justice. A 2023 assessment by Fair Trade International found that the living conditions of farmers and workers in supply chains certified by Fair Trade were considerably improved, with their incomes being 30% higher than those in traditional marketplaces. Business transparency lowers corruption, which the UN estimates costs the world economy more than $3.6 trillion annually. Increased financial inclusion in Islamic finance has resulted from ethical banking practices. For instance, Malaysia’s Islamic banking industry, which is expanding from 10% to 15% per year, has promoted economic justice by offering interest-free loans to marginalized populations. Thus, societies benefit from decreased exploitation, increased financial stability, and a more equitable distribution of wealth when fairness and honesty, according to Islamic teachings, are upheld in interactions.
D-Private Property Rights with Social Responsibility
- Responsibility in Wealth Usage
Besides fair trade principles, Islamic economic principles and private property rights are balanced to prevent hoarding and promote the common good. Islam supports the freedom to possess, trade, and amass wealth, but it also forbids excess and frugal living and enforces moral use through duties like Zakat, a 2.5% yearly charity. The Prophet Muhammad (PBUH), for instance, highlighted the importance of money in social welfare when he remarked, “The best among you are those who are most beneficial to people” (Ahmad 23405). Historical instances demonstrate how private money was utilized for public welfare, schools, and hospitals, such as the charitable endowments (waqf) set up during the Abbasid and Ottoman periods. Islamic financial institutions now encourage moral investments that advance society, reaffirming the idea that money should benefit both individuals and society as a whole.
- Social Justice Aspect:
Islam’s social justice perspective on prudent money management ensures that money is actively shared for the good of society rather than being hoarded. “And those who hoard gold and silver and do not spend it in the way of Allah give them tidings of a painful punishment”(Surah At-Tawbah 9:34). In order to help the less fortunate, Islam promotes wealth distribution through Zakat, sadaqah, and moral investments. According to statistics, nations with more significant social spending, like Sweden and Norway, where public welfare makes up more than 25% of GDP, have lower rates of poverty and more stable societies. Islam encourages a fair economic system that advances justice and shared prosperity by tying property rights to social duty.
E-Work and Livelihood
- Economic Productivity for Social Welfare:
Moving down the ladder, the Pious Caliphate serves as an example of how employment in Islam is not just a way to get money but also a responsibility to serve society and advance the common good. By establishing a public treasury (Bait-ul-Mal) to help workers and those unable to make a living, as well as by guaranteeing fair salaries and decent working conditions, Caliph Umar ibn Al-Khattab (RA) created labour rights. He was renowned for saying, “The best earnings are what a man earns with his own hands, and every honest worker is a friend of Allah.” In order to guarantee that no one went hungry, he also established a systematic welfare system that included stipends for the aged and disabled. The Islamic model promotes economic stability and social justice by guaranteeing that economic productivity benefits everyone and preserving labour dignity.
- Social Justice Aspect
Social justice and economic production were tightly related during the Pious Caliphate, guaranteeing that the generation of riches benefitted all facets of society. The economic policies by Caliph Umar ibn Al-Khattab (RA) ensured equitable resource allocation while fostering commerce, agriculture, and labour. He ensured that economic prosperity resulted in social advancement by establishing public welfare programs to aid widows, orphans, and the impoverished that the state treasury or Bait-ul-Mal financed. He famously said, “If a mule stumbles in Iraq, I fear that Allah will ask me why I did not pave the way for it.” Similarly, prosperous businessman Caliph Uthman ibn Affan (RA) donated the Well of Rumah to provide free water access for everyone in Medina, reinvesting his fortune in the community. These programs show that economic production in an Islamic context is a tool for achieving social justice, ending poverty, and guaranteeing equal chances for everyone, not merely for accumulating riches.
F-Social Welfare and Protection of Vulnerable Groups
- Islamic Approach to Social Security with Historical Examples
Last but not least, as evidenced during the Pious Caliphate, the Islamic approach to social security under economic principles guarantees that the state assumes responsibility for aiding the impoverished, widows, orphans, and other vulnerable groups. To ensure that no one was left penniless, Caliph Umar ibn Al-Khattab (RA) established welfare programs through Bait-ul-Mal (state treasury), giving stipends to the aged, crippled, and those in need. One of his essential innovations was offering financial help to orphaned children and widows, reducing economic suffering. He also established social pensions for non-Muslim residents, guaranteeing equity and inclusion in government assistance. Later, Islamic civilizations were impacted by this style of governance, as waqf (charitable endowments) provided funding for public kitchens, schools, and hospitals. This ensures that Islamic economic principles set society in order and harmony.
- Social Justice Impact
Islamic economics guarantees the inclusion of marginalized groups and lessens income and opportunity gaps by prioritising social welfare. If well executed, the zakat system alone can considerably reduce poverty. Nearly 20% of Muslims worldwide might escape extreme poverty if Zakat is appropriately distributed, according to research by the Islamic Development Bank (IDB). Additionally, there have been noticeable advancements in financial inclusion in nations like Sudan and Malaysia that have organized Islamic welfare systems. These illustrations show how Islamic economic principles foster a just and inclusive society by tackling wealth inequality and guaranteeing everyone’s financial stability.
Conclusion
In a nutshell, Islam’s economic laws, which are firmly based on social justice ideals, offer a thorough framework for guaranteeing justice, equity, and moral financial conduct. Islamic economics aims to eradicate exploitation and wealth concentration while promoting economic stability by outlawing riba (interest), encouraging Zakat (required charity), and supporting fair commerce and honest transactions. The focus on social welfare, workers’ rights, and ethical wealth use demonstrates Islam’s dedication to inclusion and the defence of marginalized communities. Ultimately, the economic model of Islam is a fair and balanced system that balances social well-being with financial prosperity, guaranteeing that economic advancement benefits everyone in society.
CSS Solved Past Papers’ Essays
Looking for the last ten years of CSS and PMS Solved Essays and want to know how Sir Kazim’s students write and score the highest marks in the essays’ papers? Then, click on the CSS Solved Essays to start reading them.
CSS Solved Essays
CSS Solved General Science & Ability Past Papers
Want to read the last ten years’ General Science & Ability Solved Past Papers to learn how to attempt them and to score high? Let’s click on the link below to read them all freely. All past papers have been solved by Pakistan’s top CSS GSA coach having the highest score of their students.
General Science & Ability Solved Past Papers
