Abstract

This study examines the theoretical framework, develops axioms and a method to gauge socio-economic development in line with Maqasid al-Shari’ah. 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-Shari’ah Index using World Values Survey data for Pakistan. Results based on Maqasid al-Shari’ah head count index show that 39% of the population is falling short of desirable level in Maqasid Shari’ah. Intensity index of Maqasid al- Shari’ah (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-Shari’ah 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 OPHI and UNDP, Pakistan performs better in Maqasid al-Shari’ah based-Index related to multidimensional poverty, as well as in the incidence and average intensity of poverty. Maqasid al-Shari’ah 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-Shari’ah.

Keywords

Human Development Index, Maqasid Shariah Index, Multidimensional Poverty, Pakistan.