Ramadan Economy and Its Impacts on the Islamic Society

Introduction

For the students of economics, the Ramadan economy has been always a fascinating subject to talk about and research. Ramadan is an astounding month in terms of micro and macroeconomics. The impact of the Ramadan economy on an Islamic society is huge, even if the Muslims don’t feel it while fasting. Before Ramadan 2021 arrives, and there is some good time still, wouldn’t it be interesting to read about the Ramadan economy? The contents are too many when it comes to the chapter of the Ramadan economy. However, in this discussion, we are going to stick with popular topics only. These include zakat, eidi, and their respective impact on Islamic society.

Ramadan Economy

Several businesses flourish rapidly during the thirty days of Ramadan. From small businesses to vendors selling their merchandise on a stall, everyone has a chance to mint some money in these holy days. For example, consider the business of dates, something that wouldn’t be sold in huge amounts normally in Pakistan. However, courtesy the Ramadan days, the business flourishes and is more profitable than any other market during these thirty days. Of course, the downside of all this is that some of the merchants try to make extra money by raising the prices of the good exaggeratedly. This practice is common in countries like Pakistan and is highly discouraged in Islam.

Zakat: A revolutionary concept

The Islamic Shariah Law makes zakat an obligation for every Muslim man or woman who meets the minimum threshold requirement. The annual 2.5 percent that the Muslims pay on their assets seems like a tiny amount to many, and yet, the impact of this is huge. A lot of families are still thriving simply because of the zakat money they receive every year. Not only that, many charities and trusts also collect zakat money, which is then used to facilitate the underprivileged members of society. One cleanses his wealth, one gets some wealth, and overall, the financial stagnancy shackles are broken. Isn’t that simply radical?

Institutionalized zakat

 In countries like Pakistan, Sudan, and Yemen, zakat is institutionalized. What does that mean? It means that the government bodies collect zakat from those who must pay it if they are owners of Nisab. There are zakat collecting bodies at work for you, which make the process of collection and disbursement easy. Banks deduct the zakat percentage on the money held up in accounts. But a majority of people still like to do things on their own, and pay zakat to a family or a trust they can trust.

How much Eidi should be given to children?

Everything you have. Ha-ha, just kidding! We imagine this would be the answer that every kid would respond to to this question. However, we understand that Ramadan 2021 is going to be a tough year, speaking in purely financial terms. Some of us might not be able to give a lot of eidi this year to our kids. This is something that we will leave up to your imagination and budget but we still feel that this amount should be enough so that your kids can go and buy whatever they wanted to before Ramadan started!

How much eidi should be given to parents?

How much eidi should be given to elders? A question that needs much more thought than the one concerning kids. Remember there was a time when you used to wait after the Eid prayer for your father to take out some notes? Well, how about this year you change the tradition? You are all set and settled in your life, after all, making your parents happy should be the top priority. We say, buy them a gift they can’t refuse! What do you think?

Conclusion – Ramadan Economy and Its Impacts

Well, that will be all for now. There are still some months left before Ramadan 2021, it is an ideal time to get everything sorted for the holy month. Yes, we understand that paying zakat in the holy month has its charm. But this year, the global pandemic has wreaked economic havoc that has made millions suffer from financial plight. Maybe, it is your Zakat money which will help one of these distressed souls! So, do think about paying zakat early this year!

Read More: How Zakat Is Distributed