Journal of Islamic Business and Management

Towards a Maqasid al-Shariah based Development Index

Hamid Hasan, Salman Syed Ali, Malik Muhammad
Published Online: June 2018

This study examines the theoretical framework, develops axioms and a method to gauge socio-economic development in line with maqasid al-Shariah. The measure is disaggregated and multidimensional to facilitate policy guidance at various levels of aggregation. The study applies Alkire-Foster counting methodology to construct maqasid al-Shariah Index using World Values Survey data for Pakistan. Results based on maqasid al-Shariah head count index show that 39% of the population is falling short of desirable level in maqasid al-Shariah. Intensity index of maqasid al-Shariah (MS) reveals that the average poor person with regard to MS is deprived in 31% of the indicators. The multidimensional poverty in terms of maqasid al-Shariah is 12% in which the contribution of posterity is lowest (4.20%) and that of property is the highest (50%) suggesting a need to improve protection of wealth in MS sense in Pakistan. Comparing with the multidimensional poverty calculated by the Oxford Poverty and Human Development Initiative (OPHI) and United Nations Development Programme (UNDP), Pakistan performs better in maqasid al-Shariah based-Index related to multidimensional poverty, as well as in the incidence and average intensity of poverty. maqasid al-Shariah based-Index uses more dimensions and higher thresholds for deprivation cut-off as compared to OPHI and UNDP index, yet the poverty numbers are lower. This shows a better socio-economic condition in Pakistan in the dimensions of maqasid al-Shariah.


Human Development Index, maqasid al-Shariah Index, Multidimensional Poverty Pakistan.