Suchergebnisse

Rural poverty remains a serious problem in Pakistan, with more
than 30 percent of rural population living in absolute poverty. In rural
Pakistan there is a big gap between rich and the poor. While the stake
of competition for position and status concerns the rich, the struggle
for survival in the midst of increasing crises embarrasses the poor. The
rural poor—the pauperised class—are week and powerless with inadequate
command over resources relative to needs. In fact, the polarisation
process which is making the rich richer and poor poorer is a consequence
of poverty. Neither the poor nor the outside well wishers have the power
to break the vicious deprivation trap. It is consensus that rural social
structure is responsible for rural underdevelopment.

It is frequently asked whether the modern economy can function
without interest. This question has acquired some urgency in wake of the
recent ruling of Supreme Court banning interest in Pakistan. In this
respect every expert has his own opinion. Some pronounced that great
harm will result from the banning of interest. Others have the opinion
that such pronouncement is based on lack of understanding of the modern
economic system, as well as the nature of the Islamic prohibition of
interest. However, the banning of the rate of interest has affect on the
economic activity, i. e. especially on the small traders and farmers. It
is commonly argued that this change in capital market has two important
effects on the economy. It increased the capital supply while price
reduces, thus improving efficiency. And it makes also possible to
produce more with relatively less cost, thus has positive effect on the
growth of the economy