Examining Credibility of Zakat System in Pakistani Society

Abstract

As a Muslim state, the Islamic finance system should be core to the economy of Pakistan. However, the Islamic finance system has not been adopted effectively. In consequence, the Islamic finance system could not make its credibility in a true sense before the masses. Zakat is one of the major pillars of Islam and has the potential to end major social problems facing Pakistani society. However, the main issue of concern is whether the Zakat system is credible or not. In this way, this research tried to analyze the credibility of the zakat system in Pakistani society, highlight a brief account of details about the Zakat mechanism in Islam and Pakistan, and then suggest suitable measures to improve the studied phenomenon. Methodologically, this study was conducted simultaneously in four provinces: Punjab, Sindh, Balochistan, and KPK, Pakistan. Data was taken from 150 respondents from each province, which made a total of 600 respondents. The findings of the study are shown by the Corporate Credibility Scale responses of two constructs: trustworthiness in all provinces, i.e., 38.78 percent, and expertise, i.e., 41.40 percent. In this way, both constructs fall in average credibility. Considering the findings, the core reasons for lower statistics are bad governance, lack of skill, sons, and lack of welfare spending. So, it is suggested that the government of Pakistan should increase its welfare spending and take emergency measures to reform the outdated system of service delivery that caused the low credibility of the Zakat system in Pakistan.