Zakat and Economic Development: Micro and Macro Level Evidence from Pakistan


  • Muhammad Azam Ph. D Scholar, Federal Urdu University, Islamabad, Pakistan Author
  • Nasir Iqbal Staff Economist, Pakistan Institute of Development Economics, Islamabad, Pakistan Author
  • Muhammad Tayyab Research Scholar, AJK University, Muzaffarabad, Pakistan Author


Zakat, transfer payment, social welfare, economic growth,, Pakistan


Zakat, as a transfer payment, is an important instrument to achieve social welfare in a society in


Islamic ideology. This study attempts to analyze the impact of Zakat on economic development


using micro and macro level data for Pakistan. The overall analysis shows that Zakat has a


positive impact on economic development in Pakistan. More specifically, micro evidence shows


that Zakat significantly enhances the welfare of the households. Macro evidence also highlights


that Zakat significantly contributes to economic growth in Pakistan. These findings have


important implications for Pakistan.







How to Cite

Azam, M. ., Iqbal, N. ., & Tayyab, M. . (2014). Zakat and Economic Development: Micro and Macro Level Evidence from Pakistan. Bulletin of Business and Economics (BBE), 3(2), 85-95.

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