The Role of Cash Waqf in Bridging Socio-Economic Inequalities in Pakistan

Abstract

Numerous Muslim-majority nations continue to endure sustained economic and social inequalities which erodes their national security base while undermining inter-community accord. Social and financial inequality together with limited resource access and restricted opportunities produce cyclic poverty that disadvantaged groups continuously find tough to break free. A financial endowment that has caught much attention in recent years is cash waqf, based on Islamic philanthropy and an instrument used for enhancing socio-economic welfare in Muslim societies. Cash waqf differs from the classical waqf by mobilizing monetary resources to fund sustainable development initiatives. The study looks at four development path-dependent independent variables: awareness and understanding of cash waqf, governance, transparency, and trust in their effect on socio-economic welfare in Pakistan. Participation in cash waqf is dependent on awareness and understanding, and the more aware and understanding people are of the benefits and the religious significance of cash waqf, the more these individuals are likely to contribute. This study employs a mixed-methods research design, integrating both quantitative and qualitative approaches to provide a comprehensive evaluation of the role of cash waqf in reducing socio-economic inequalities in Pakistan. Research data show that cash waqf acts as an essential tool for minimizing social and economic disparities in Pakistan. Socio-economic welfare perceptions depend largely on people's knowledge of cash waqf and their participation in and connection to its governance processes and transparency standards, along with their trust in institutions.