By Bilal Ahmed Qazi
Abstract
The paper discusses the scale of latitude that Islamic Jurisprudence provides to an Islamic State for price regulation (TAS’EER). After describing in detail the various schools of thought of Islamic Jurists on the topic and identifying the preferred view, the paper discusses the pros and cons of price restrictions in contemporary circumstances. It also presents the Shariah rulings on hoarding (IHTIKAAR) of commodities that may result due to price control. Views of the traditional jurists in the light of the narrations of the Prophet Muhammad (صلی اللہ علیہ وسلم) on the matter are described followed by their evaluation with respect to their accordance with the conventional concepts of economics. The regulatory structure and practices of Khilafat-e-Usmaniah are narrated in evidence of the practicality of solutions in the light of Islamic Jurisprudence. The paper then proceeds with highlighting the potential and viability of equity based financing (Musharakah & Mudarabah) that can be capitalized by the regulators as one of the tools for monetary policy and open market operations to control the money supply and ultimately the prices of the products.
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