Economic system of the state of Medina and the existing usurious System, a research review

Abstract

After the arrival of the Prophet (S.A.W.W) in Medina, the foundation of the Prophet's Mosque was immediately established, that is, the secretariat for the state was established. Along with this, the economic resources of the society were given priority. Because there was a state of emergency and on the other hand, there were Ansar Medina, some of whom were middle-class and some were quite rich, that is, practically the shape of Pakistan today was similar to that of Medina. In our country, one section is suffering from poverty due to economic oppression and the other section is quite wealthy.

In the modern era, the problems faced by the Muslim countries, especially Our country Pakistan, are usury system, economy, poverty and bankruptcy, unemployment, inflation, debts of other foreign countries, imbalance of international trade.
Muslim countries, especially Pakistan, can get rid of these problems if they decide their economic policies in accordance with the Qur'an and Sunnah. But employment opportunities can be created and poverty and unemployment can be eradicated.

In all this situation, the state should ensure the implementation of Zakat system instead of controlling its financial policy by interest rate, which is a distinguishing aspect of Islamic economy and stability of the state.