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Providing For The Resource Shortfall For Poverty Elimination Through The Institution Of Zakat In Low-Income Muslim Countries


  • Nasim Shah Shirazi

    () (International Institute of Islamic Economics, International Islamic University Islamabad.)


This paper is an attempt to estimate the resource shortfall and potential zakat collection for poverty elimination in the low-income Muslim countries. The paper estimates the resource shortfall by utilizing the international poverty lines (under USD1 and 2) headcount and poverty gap index estimated by the World Bank. Potential zakat collection has been estimated by utilizing Kahf’s (1989) definitions of zakatable items with some modifications. The paper finds that some of the low-income Muslim countries can meet their resource gap under USD1 international poverty line with potential zakat collection. However, other countries, mostly belonging to Africa, cannot meet their resource shortfall from their potential zakat collection.

Suggested Citation

  • Nasim Shah Shirazi, 2006. "Providing For The Resource Shortfall For Poverty Elimination Through The Institution Of Zakat In Low-Income Muslim Countries," IIUM Journal of Economics and Management, IIUM Journal of Economis and Management, vol. 14(1), pages 1-28, December.
  • Handle: RePEc:ije:journl:v:14:y:2006:i:1:p:1-28

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    Cited by:

    1. Mohieldin , Mahmoud & Rostom , Ahmed & Fu, Xiaochen & Iqbal, Zamir, 2012. "The Role of Islamic Finance in Enhancing Financial Inclusion in Organization of Islamic Cooperation (OIC) Countries," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 20, pages 55-120.
    2. Shah Shirazi, Nasim & Obaidullah, Mohammed, 2014. "Why Poverty Reduction Programs of Pakistan Did Not Bring Significant Change: An Appraisal," Working Papers 1435-17, The Islamic Research and Teaching Institute (IRTI).
    3. Aan JAELANI, 2016. "Zakah Management for Poverty Alleviation in Indonesia and Brunei Darussalam," Turkish Economic Review, KSP Journals, vol. 3(3), pages 495-512, September.
    4. Jaelani, Aan, 2015. "Manajemen Zakat di Indonesia dan Brunei Darussalam
      [Zakah Management in Indonesia and Brunei Darussalam]
      ," MPRA Paper 71561, University Library of Munich, Germany, revised 10 Sep 2015.
    5. M. Akram, Mian & Afzal, Muhammad, 2014. "Dynamic Role of Zakat in Alleviating Poverty: A Case Study of Pakistan," MPRA Paper 56013, University Library of Munich, Germany.
    6. Abdul Ghafar Ismail & Bayu Taufiq Possumah, 2014. "Poverty and social security in Islam," Chapters,in: Handbook on Islam and Economic Life, chapter 22, pages iii-iii Edward Elgar Publishing.
    7. Shiraz, Nasim Shah & Yasin, Hafiz M., 2015. "Fiscal Structure, Social Welfare Program and Infrastructure Development in the Former State of Swat (Pakistan): A Case Study with Implications for Muslim Countries," Working Papers 1433-8, The Islamic Research and Teaching Institute (IRTI).

    More about this item


    Zakat collection; Poverty elimination; Resource shortfall;

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty


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