Role of Zakat as a Tool of Poverty Alleviation and Sustainable Development: The Case of Bangladesh

Abstract

Despite different programs taken by various stakeholders in attempt to alleviate poverty, poverty is still one of the major concerns in policy level and a burning issue for the societies in Bangladesh. Whereas Islam sets down different policies and mechanisms to tackle this problem, Zakat is one of such foremost institutions. It has been declared as one of the five pillars of Islam, in the sense that it is a deed violation of which falls short of fulfilling the basic obligations prescribed by the religion. Zakat is a transfer of ownership of individual’s property to a person or group of persons under some specific conditions. So, the paper explores the developments and challenges to fulfill the potentials of   Zakat in the context of Bangladesh. Theoretical and empirical studies have been reviewed to the economic potential and the impact of Zakat in this study. Finally an analysis is shed light on some Zakat based socio-economic projects implemented by different institutions in    Bangladesh. The current study tries to establish Zakat as an indispensible ingredient of sustainable development plan along with poverty   alleviation in the country.