Fiscal Structure, Social Welfare Program and Infrastructure Development in the Former State of Swat (Pakistan): A Case Study with Implications for Muslim Countries

The State of Swat was quite prosperous, self- sufficient in resources and famous for good governance. The revenue system was economical and comprehensive. The Ushr on agricultural produce and livestock was the major sources of revenue. The collection and distribution mechanism had certain unique and interesting features. The State had to spend on the maintenance of law and order, provision of justice and the necessary infrastructure. Special attention was paid to education and health services. People were provided with standard health and education facilities free of cost. The rulers provided the best infrastructure of the time. The judiciary system was very efficient and the law and order condition exemplary. The policy of self- reliance was generally followed and the State had no debt liabilities at the time of merger. The driving force behind the success was efficient administration and vigilance of the rulers. The Muslim countries can draw useful lesson from the experience of Swat State for the generation of revenue and their economic and social development programs.