Islamabad: Revitalizing Waqf and Zakat requires institutional reform, technological integration, and a return to the principles of Maqasid al-Shariah. It also calls for greater emphasis on transparency, skill development, and entrepreneurship to address socio-economic inequalities, while positioning these institutions as ethical alternatives to prevailing market-driven development paradigms.
These reflections emerged on the first 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 two-day conference brings together leading national and international scholars, researchers, policymakers, regulators, and practitioners to explore innovative policy solutions and practical frameworks for leveraging Waqf and Zakat as structured instruments for sustainable and inclusive development.
Speakers included Prof. Dr. Nasir Mehmood, vice chancellor AIOU; Prof. Dr. Anis Ahmad, vice chancellor Riphah International University; Prof. Dr. Iqbal Khan, vice chancellor Shifa Tameer-e-Millat University (STMU); Prof. Dr. Mohyuddin Hashmi, dean, AIOU; Khalid Rahman, Chairman IPS; Prof. Dr. Atiquzzafar Khan, HoD, STMU; Dr. Ghazala Ghalib, Faculty of Shariah and Law, IIUI; Prof. Dr. Kabir Hassan, The University of New Orleans, USA; Omar Mustafa Ansari, secretary general, Accounting and Auditing Organization for Islamic Financial Institutions, Bahrain; Prof. Dr. Mehmet Asutay, Durham University, UK; Dr. Tariq Naseem, Securities and Exchange Commission of Pakistan; Dr. Toseef Azid, University of Management and Technology; Dr. Fazal ur Rehman, Zakat Foundation of America; and Dr. Salman Syed Ali, former research lead, Islamic Development Bank.
The discussion highlighted that Zakat, as a pillar of Islam, and Waqf, as a foundational Islamic economic institution, have historically played a vital role in ensuring equitable wealth distribution and social development. However, in the Subcontinent, both institutions have gradually been reduced in scope. This shift, combined with corruption and the absence of an effective regulatory framework, has eroded public trust in economic institutional mechanisms.
Speakers emphasized that several Muslim-majority countries, such as Trkiye, Malaysia, Indonesia, and Kuwait, have attempted to revitalize Waqf and Zakat through institutional reforms, integrating financial technologies and artificial intelligence to improve transparency, efficiency, and outreach. These global experiences offer valuable lessons for Pakistan, particularly in designing frameworks to address poverty and other socio-economic challenges through structured and sustainable mechanisms.
It was underscored that Islam offers a comprehensive framework for life, encompassing economic, social, and moral dimensions. In this context, any Islamic financial model must be developed holistically, taking into account the socio-political realities and systemic limitations within Pakistan. The ongoing evolution of Islamic banking and finance in the country requires careful alignment with broader developmental objectives, ensuring that such models contribute meaningfully to inclusive growth.
Speakers noted that Islamic jurisprudence inherently promotes a balanced and integrated view of society, supporting the circulation of wealth through institutions such as Waqf and Zakat. Despite the availability of resources globally, persistent inequalities, including poverty and widening socio-economic divides, indicate the failure of existing systems to ensure equitable distribution. In this regard, revitalizing these institutions can serve as a viable pathway to bridge such gaps. Moreover, beyond financial assistance, there is a growing need to equip beneficiaries with skills and entrepreneurial capabilities, aligning welfare mechanisms with sustainable development goals and long-term economic empowerment.
The deliberations further critiqued the dominant Western paradigm, which has increasingly shifted the focus of human life toward individualism and market-driven decision-making, often at the expense of ethical and social considerations. In contrast, the Islamic framework offers a balanced approach that aims to fulfill collective social needs while maintaining moral integrity. Zakat and Waqf, in this context, emerge as instruments capable of restoring equilibrium within society by addressing both material and ethical dimensions of development.
Participants also reflected on the intellectual legacy of Professor Khurshid Ahmad, situating his work within a broader continuum of Islamic thought that builds upon earlier reformist traditions. His contributions were described as integrated efforts that combined economic theory, political engagement, and institutional development. The discussions highlighted the need to revisit and reinterpret these ideas to respond effectively to contemporary challenges, ensuring that Islamic economic principles are applied coherently rather than in fragmented ways.
Khalid Rahman highlighted that rising geopolitical tensions and economic uncertainties have heightened the need for alternative development paradigms that prioritize social welfare and collective well-being. While conflict represents destruction, institutions such as Waqf and Zakat symbolize reconstruction and development, particularly in post-crisis contexts where resource mobilization for peacebuilding becomes essential.