Pakistan’s QAU Concludes International Islamic Economics Conference, Highlighting Global Trends

Islamabad, Pakistan – The International Islamic Economics Conference recently concluded at Quaid-i-Azam University (QAU), marking a significant milestone in the discourse on Islamic social finance and its role in economic development. The event convened esteemed scholars, policymakers, and industry experts to explore innovative financial instruments rooted in Islamic principles, aiming to address contemporary economic challenges and promote sustainable development.

Islamic Social Finance and Economic Development

The conference’s central theme, “Islamic Social Finance and Economic Development,” underscored the potential of Islamic financial instruments—such as zakat (almsgiving), sadaqa (charitable donations), waqf (endowments), Islamic microfinance, and takaful (Islamic insurance)—in fostering economic inclusivity and alleviating poverty. These instruments prioritize community welfare and ethical practices, offering viable solutions to reduce inequality and promote sustainable development.

The conference discussions emphasized that Islamic social finance is more than just a financial system—it is a tool to uplift marginalized communities, support sustainable development goals (SDGs), and promote ethical business practices. By centering on the concept of fairness, transparency, and shared prosperity, Islamic social finance provides an alternative model to traditional financial systems.

Distinguished Participants

The conference featured several distinguished figures, including:

• Professor Dr. Niaz Ahmad Akhtar: Vice Chancellor of QAU, who inaugurated the conference with a call for more research and collaboration in Islamic finance.

• Justice Dr. Syed Muhammad Anwer: Former Chief Justice of the Federal Shariat Court, who received a Lifetime Achievement Award for his pivotal role in drafting the judgment on eliminating Riba (interest) in Pakistan by 2028.

• Professor Dr. Muhammad Tariq Majeed: Director of the School of Economics at QAU, who emphasized the need to integrate Islamic social finance tools into economic policy.

• Dr. Humayon Dar: Director General of the Cambridge Institute of Islamic Finance, who delivered a keynote address on the role of Islamic social finance in promoting social equity and ethical financial systems.

These key figures presented groundbreaking insights on how Islamic finance can bridge the gap between economic development and social justice, highlighting the potential of Islamic financial instruments to support financial inclusion and sustainable development.

Panel Discussions

Panel discussions delved into various aspects of Islamic economics, including:

1. Linking Islamic Finance to Sustainable Development Goals (SDGs): Scholars discussed how Islamic social finance, through its focus on social welfare, aligns with the United Nations’ SDGs. The alignment is most evident in areas like poverty reduction, gender equality, and sustainable communities.

2. The Role of Islamic Banking in Economic Stability: Panelists noted that Islamic banking offers a more stable financial system, as it is based on risk-sharing principles rather than debt-fueled growth. This aspect was highlighted as a key contributor to economic resilience during financial crises.

3. Leveraging Waqf for Community Development: The session on waqf (Islamic endowments) emphasized its potential for creating sustainable social infrastructure. Successful waqf models from Malaysia and Indonesia were discussed, with recommendations for replicating these models in Pakistan.

4. Digital Transformation in Islamic Finance: The role of financial technology (fintech) in scaling Islamic social finance was a key topic. Panelists shared case studies on how blockchain and artificial intelligence are enabling transparency, efficiency, and traceability in zakat collection and distribution.

5. Ethical Challenges in Islamic Finance: Panelists addressed the ethical challenges in Islamic finance, particularly in areas like governance, transparency, and accountability. Ensuring Shariah compliance was highlighted as a critical factor for maintaining consumer trust.

Islamic Social Finance Tools

The conference explored the role of key Islamic social finance tools and their ability to create positive socio-economic impact. These tools include:

• Zakat (Obligatory Charity): Zakat plays a vital role in poverty alleviation. Experts discussed how better collection mechanisms, facilitated by technology, can increase the efficiency of zakat distribution to deserving communities.

• Sadaqa (Voluntary Charity): Unlike zakat, sadaqa is voluntary and can be used more flexibly to support humanitarian causes. It was highlighted as an essential tool for disaster relief and emergency assistance.

• Waqf (Endowment): The concept of waqf was presented as a long-term development solution. Conference participants discussed how the revival of the waqf system in countries like Malaysia and Indonesia has enabled the construction of schools, hospitals, and other community infrastructure.

• Islamic Microfinance: Discussions on Islamic microfinance revolved around providing interest-free loans to underserved communities, helping them to start small businesses and generate sustainable livelihoods.

• Takaful (Islamic Insurance): Panelists highlighted how takaful provides an ethical insurance alternative, ensuring that customers are not exposed to excessive risk. Its role in providing social safety nets for marginalized communities was emphasized.

A recurring theme at the conference was the role of technology in driving the future of Islamic finance. Emerging technologies like blockchain, artificial intelligence (AI), and big data are transforming how zakat, waqf, and other financial instruments are managed and distributed. Key takeaways include:

1. Blockchain for Transparency: Blockchain is being used to create transparent and auditable trails for zakat donations, ensuring accountability in the collection and distribution process.

2. AI-Powered Platforms: Artificial intelligence is being used to assess the eligibility of zakat beneficiaries and optimize the allocation of financial assistance.

3. Digital Payments for Islamic Finance: Mobile payment platforms are making it easier for Muslims around the world to contribute to zakat, sadaqa, and waqf, making financial inclusion more accessible than ever before.

Major Announcements

One of the key outcomes of the conference was the signing of a Memorandum of Understanding (MoU) between the Cambridge Institute of Islamic Finance (Cambridge-IIF) and QAU’s School of Economics. This MoU aims to strengthen research, technical cooperation, and the development of new educational initiatives in Islamic finance. Key aspects of this collaboration include:

• Joint Training Programs: Customized training programs for professionals and students, focusing on emerging trends in Islamic banking and finance.

• Workshops and Seminars: Both institutions will organize regular workshops and seminars aimed at raising awareness and building capacity in the field of Islamic economics.

• Exchange of Research and Educational Materials: The institutions will facilitate knowledge sharing through academic resources and research collaborations.

The Cambridge Institute of Islamic Finance also announced its continued support for the annual International Conference on Islamic Finance, with the next edition scheduled for November 2025. The event aims to bring together scholars, industry experts, and policymakers to drive innovation and collaboration in the global Islamic finance sector.

During the conference, Justice Dr. Syed Muhammad Anwer was presented with the Lifetime Achievement Award for his significant contribution to Islamic jurisprudence and his role in the landmark decision on Riba (interest) elimination by 2028. His work in aligning Pakistan’s financial system with Islamic principles was widely recognized as a pivotal step toward an interest-free economy.

Impact on the Global Islamic Economy

The insights and recommendations from the International Islamic Economics Conference are expected to have a far-reaching impact on the global Islamic economy. The conference identified new growth areas and highlighted how Islamic social finance could drive economic development on a global scale. Key impacts include:

1. Revival of Waqf: Countries are increasingly exploring waqf as a means to build essential social infrastructure like schools and healthcare facilities.

2. Scaling of Islamic Microfinance: The conference underscored the potential of Islamic microfinance to support small businesses, particularly in developing countries.

3. Fostering Global Partnerships: Collaboration between universities, financial institutions, and regulatory bodies was highlighted as crucial for the continued development of Islamic finance.

The International Islamic Economics Conference at Quaid-i-Azam University has set a precedent for future discourse on Islamic social finance. By fostering collaboration among scholars, policymakers, and industry professionals, the conference has laid the groundwork for transformative initiatives in Islamic finance.

The partnerships formed and insights gained from the conference are expected to shape policy, research, and education in Islamic finance. The emphasis on technology-driven financial solutions, ethical practices, and financial inclusion makes Islamic social finance a promising model for global sustainable development.