Abolish Capitalism to Strengthen Currency, End Rampant Inflation
Pakistan’s Finance Minister, Mr. Ishaq Dar, is misleading the people about the weakening of the Rupee, which is leading to rampant inflation in the country. He claims that market speculation is the root cause, when in fact the root cause is the very system that his government is implementing, Capitalism.
Like other currencies, the Dollar, the Pound and the Franc, originally, the Rupee was backed by real tangible wealth in the form of a precious metal. In the case of the Dollar, it was gold, in the case of the Rupee it was silver. This system stabilized the value of the monetary unit both internally within the region and externally in international trade, such that under Islam, the Indian Subcontinent was an economic powerhouse for the global economy.
However, due to capitalist practices, such as interest-based loans and stock markets, the demand for the creation of money outstripped the supply of gold and silver. The states abandoned the precious metal standard, so that currency became backed only by the authority over the state, allowing more and more notes to be printed, without being backed fully by gold and silver, such that each new note has less value than previously. However, money is used to buy commodities and services, so the money became worth less, if not almost worthless. Continuous rises in price are now so much part of the capitalist system that inflation is a widespread measure of how fast they are rising.
Islam has mandated that the currency of the state is backed by precious metal wealth, ending the root cause of inflation. RasulAllah صلى الله عليه وسلم commanded the Muslims to mint Gold Dinars, weighing 4.25g, and Silver Dirhams, weighing 2.975g, as the currency of the state. This is why the Khilafah enjoyed stable prices for over a thousand years. The very least that Mr. Dar and his cohorts can do is to stand aside to make way for Hizb ut-Tahrir to achieve ruling by Islam. Only under the Khilafah will the Muslims set an example to the entire world of economic prosperity, through the implementation of the revealed commands of Allah سبحانه وتعالى and His Messenger صلى الله عليه وسلم.
Media Office of Hizb ut-Tahrir Wilayah Pakistan
Friday 6th Dhul Hijjah 1434 AH
11/10/2013 CE
No: PR13101