The choice of Pakistan, as the venue for this historic seminar, is apt and appropriate for reasons more than one. It was established on 14 August, 1947, with the sole objective of establishing an Islamic order in the country, both in the individual and the collective spheres, representing the expression of the indomitable will of the millions of Muslims of Indo-Pakistan sub-continent, to carve out for itself, a state, where Islamic tenets and value will be taught, propagated and practised.  

For thirty years, the Muslims of Pakistan waited patiently, to see the promised order to be established. In 1977, their patience was exhausted and the movement for the establishment of the Islamic Order in Pakistan, led to the toppling of, the then government, and a new regime clearly and fully committed to, Islamizing the economy, the polity and the society, took over. Immediately after the assumption of office, work commenced in right earnest, to translate ideas, ideals and slogans, to workable and feasible realities, consistent with the requirements of the complexities of modern times and not breaking away too abruptly, with the historical context.

It was but natural that, work on the formulation of the Grand Design, for the transformation of the Pakistani Society into a truly Islamic mould, should include, attention to the establishment of an organised system of zakat (including Ushr) assessment, collection and disbursement, strictly in accordance with the requirements of Shariah, at the same time not inconsistent with the requirements of the so called, Modern Society.

 Zakat and Ushr Law

 It was on 10 February, 1979, that we published a draft Zakat and Ushr Order for   eliciting public opinion. After having received and analysed a large number of responses from all shades of public opinion, both from within and outside the country, and after undertaking extensive consultations with relevant experts and others, we promulgated on 24 June, 1979, apart Zakat law setting up a 5-tier Zakat Organisation

 a  Central Zakat Council, at the national level,

a  Provincial Zakat Council, in each province,

a  District Zakat Committee, in each district,

a  Tehsil or Sub-district Zakat Committee, in each sub-district and

a  Local Zakat Committee, in each locality.

We used the first year for, setting up the organisation, and training its members and concerned public functionaries, in the art and methodology of discharging their duties, vis-a-vis Zakat and Ushr assessment, collection and disbursement. We also used the first year for, laying down the ground rules, regulating a host of administrative and organisational matters.

 Once the ground work had been completed, on 20 June, 1980, we promulgated the composite Zakat and Ushr law replacing the part-Zakat law promulgated a year earlier. Immediately after the promulgation of the said composite Zakat law, the deduction of Zakat, at, source in respect of a number of specified types of financial assets commenced, and simultaneously the process of disbursement of Zakat amongst those eligible and entitled to receive Zakat under Shariah, commenced, through forums consisting almost exclusively of non-officials chosen for their piety and taqwa, and assigned Zakat duties without any remuneration except the Divine pleasure and the reward in the Hereafter.

 We shall be completing the 5th year of Zakat collection and disbursement next month and by then we will have collected almost Rs.4750 million and disbursed almost Rs.3750 million, benefiting each year more than a million beneficiaries such as the widows and the orphans, the disabled and the handicapped, the poor students of deeni madaris, the indigent students and trainees of educational, vocational, technical and professional institutions, the needy patients at the health establishments and so on and so forth.

 Right from the beginning our emphasis has been on utilizing ever-increasing proportion of available Zakat Funds for rehabilitating, where ever feasible, the recipients so as to make them independent of the need for begging for Zakat money again and again, except when and where unavoidable. Over 100,000 Zakat recipients have been rehabilitated through the provision of resources, mostly in kind, for small business, provision of artificial limbs, push carts, tricycles and other income generating electrical or non-electrical mechanical appliances, provision of dowries at the time of the marriage of destitute girls etc.

 In doing all this, we also ensured that the burden of administrative expense on Zakat Funds remains nil or negligible and wherever unavoidable, even there, its level is kept to the barest minimum. This has become possible through the willing co-operation of almost everybody concerned with Zakat and Ushr assessment, collection and disbursement, doing his duty fisabeelillah, free of charge. Whether these are Zakat Deduction Offices 11000 in number or the Zakat Committees almost 17000 or their members almost 250,000, they are all doing and have been performing their role only as a matter of religious duty.

 Presence of the members of superior judiciary, at the higher echelons of Zakat Organisation, ensures strict neutrality, objectivity and impartiality. Presence of Ulema, the religious scholars, there ensures strict conformity to the requirements of Islamic jurisprudence. Arrangements for constant and multi-dimensional inspection and audit ensure credibility and accountability.

 Though much has been done and achieved, yet much remains to be done and achieved. And it is in that sense, that I say, that this seminar is not only, most welcome and opportune, but also has not come about even a day, too soon.

 We do realize that our effort at establishing the Nizam-e-Zakat in Pakistan represents but a modest beginning, in-as-much as, through the compulsory deduction of Zakat at source in respect of certain specified types of financial assets and through, the compulsory recovery of partial Ushr, we not only a small proportion of the Zakat and Ushr payable under the Islamic Shariah. If Zakat apart from being an act of worship an ibadah, of course, one of the fundamental pillars, has also to become a potent and effective tool of comprehensive, and reliable social security for the poor, and the needy, so as to cater for not only, some of their basic needs such as food, clothing, education and medicare but also some other equally basic but more expensive needs, such as housing, employment, eradication of beggary etc., then something far more extensive, far more drastic, far more far-reaching will have to be attempted.

 Thus that is the one specific area to which, I would hope and expect such illustrious luminaries, men of knowledge, experience and wisdom, as gathered together here, to address themselves, so as to fulfill, the real purpose of the seminar, namely, how to manage, ever more purposefully, imaginatively and constructively the divinely gifted institution of, Zakat for the benefit of the deprived segments of human society so as to rid them of, the scourge and menace of social insecurity.

 Zakat funds for community development

 Another equally, if not more, important area worthy of attention by this august gathering of scholars and researchers, teachers and preachers, professors and administrators, lawyers and jurists, financiers and bankers, appears to me the need for the utilization of Zakat and Ushr funds on the collectively owned public works of community development and social welfare. This Seminar on the Management of Zakat in Modern Muslim Society will have succeeded immeasurably if it can throw up viable ideas on the resolution of this impasse. Yet another area to which I shall urge that this seminar focuses its attention is the ever-increasing role for Zakat Organisation, in the eradication or at least containment of professional beggary.

 While I am pointing out these areas of possible focus and exploration, I must state, clear and loud, that I am by no means suggesting deviation from the norms set by Shariah. These norms, these parameters, must be observed but with due cognizance of the realities of modern times, particularly our own conditions, the, conditions of Muslim Ummah as a whole.

 I am glad to learn that some very learned Papers on some of the most thought provoking topics pertinent to Zakat and Ushr are going to be presented by men of Letters drawn from Saudi Arabia, Kuwait, Sudan, Egypt, Turkey which will then be commented upon in depth by knowledgeable persons. Thereafter the floor will be thrown open for general discussion. That to my mind in the best way to examine any important issue of public interest in-depth and then to evolve there from a workable strategy for promoting the common weal in accordance with the injunctions of Quran and Sunnah. I am also glad to learn that our Central Zakat Administration and National Development Finance Corporation have played an active role in collaborating jointly with the Islamic Development Bank to set up this Seminar. I compliment all three of them and through them everyone high or low who has contributed his bit to the successful organisation of this seminar.

 We shall all be watching the deliberations of the seminar keenly and with great interest. The outcome of your deliberation, I have no doubt, will be an historic landmark, in the history of Zakat Organisation and Management. I also hope that this Seminar though the first of its kind will by no means be the last. More and more of such moots will be organised hopefully again and again at suitable intervals. If the arrangement could be institutionalized under the aegis of the Islamic Development Bank and with the mutual collaboration of the Muslim countries, that would be highly desirable. Let us assure you, Sir, and through you, others who may be interested in such a project, that the Government of Pakistan will do its best to perform as adequately as feasible any role that may be assigned to it in this behalf. For example, an off-the-cuff idea that strikes me is the establishment of a Training Institute for running short and medium term orientation-cum-training courses for the benefit of Zakat functionaries, official and non-official, from all over the Muslim World.

 Inaugural address by Lt. General Jahandad Khan, Governor of Sind.