Islamabad: Unlocking the vast untapped potential of Waqf and Zakat requires systemic reforms with robust regulations, transparency, and governance autonomy. Despite significant financial resources, these institutions remain underutilized. Experts emphasized that without measurable outcomes and efficient management, their role in addressing poverty and inequality in Pakistan will remain constrained.
This was discussed on the second day of the Professor Khurshid Ahmad International Conference 2026, jointly organized by the Institute of Policy Studies (IPS) and Allama Iqbal Open University (AIOU) under the theme 'Mobilizing Waqf and Zakat for Socio-Economic Empowerment: Policy Perspectives on Entrepreneurship and Sustainability.' The hybrid conference convened policymakers, academics, and international practitioners to discuss actionable pathways to strengthen Islamic social finance mechanisms.
Speaker included Prof. Dr. Tahir Mansoori, Shariah board member, Askari Islamic Bank; Dr. Shahid Naeem, consultant, Ministry of Poverty Alleviation and Social Safety; Dr. Khaleequzaman, chairman Inclusive Resource Management; Dr. Tariq Naseem, head Islamic finance SECP; Prof. Dr. Abdul Quddus Sohaib, BZU; Prof. Dr. Muhammad Ayub, Department of Islamic Finance, RIU; Mufti Shakir Jakhura, senior manager AAOIFI, Bahrain; Prof. Dr. Abdulhamit Birisik, RIU; Dr. Hendri Tunjang and Dr. Yuki Rahmawati, Indonesia; Dr. Ibrahim Bulushi, Kenya; Dr. Muhammad Husam Helmi, Rabdan Academy, UAE; Ayaz Mehmood Lashari, Auqaf zonal administrator, Rawalpindi, Prof. Dr. Anwar Shah, IBA Karachi, Dr. Ali Salman, CEO Prime Institute, and Dr. Irum Saba, professor, IBA Karachi.
Speakers highlighted that Pakistan's Waqf and Zakat landscape faces regulatory challenges and governance inefficiencies. Experts argued that social protection programs are operating in silos, resulting in the underutilization of Waqf and Zakat benefits. It was noted that despite a decades-old instituted system of Zakat and substantial annual contributions, poverty alleviation outcomes remain limited. At the same time, significant informal contributions continue to flow outside formal systems, highlighting issues of trust and institutional credibility.
A key theme of the discussions was the need to shift from fragmented welfare mechanisms to an integrated development model in which resources are used for defined objectives. Experts emphasized aligning Waqf and Zakat with entrepreneurship, small and medium enterprises, and skills development to enable sustainable income generation. Particular focus was placed on equipping individuals with vocational and digital skills and on supporting agriculture-based livelihoods to promote long-term self-sufficiency rather than dependency.
The discussions also underscored the importance of modernizing Pakistan's institutional frameworks. In this regard, global examples from Trkiye, Malaysia, Singapore, and Indonesia were cited to illustrate how structured governance has enhanced transparency and efficiency. Instruments such as Cash Waqf Linked Sukuk and emerging models of Islamic social finance integration were highlighted as replicable practices. Speakers emphasized that the state's role should be limited to that of a constructive regulator, avoiding unnecessary interference.
The conference declaration called for a comprehensive reform agenda to unlock the full potential of Islamic social finance in Pakistan. Key recommendations included establishing a unified national Waqf authority to regulate Waqf assets and reforming Zakat governance through autonomous and accountable structures.
It further emphasized the role of Islamic banking institutions as intermediaries and the adoption of digital technologies, including blockchain and AI-based systems, to enhance transparency and rebuild public trust. The declaration also called for a strategic shift toward development-oriented utilization of funds, prioritizing skill-building, micro-enterprise financing, and social infrastructure.
The conference concluded with a vote of thanks by Syed Abrar Hussain, vice chairman of IPS, and Prof. Dr. Mohyuddin Hashmi, dean of AIOU. They also stressed that a comprehensive, technology-enabled, and impact-oriented system is essential to translate the Waqf and Zakat resources into tangible socio-economic outcomes and sustainable development in Pakistan.