Role of Islamic Finance (Zakah) to Eradicate Extreme Poverty in Bangladesh

Abstract

The aim of the study is to find out the role of Zakat as tools of Islamic Finance to eradicate extreme poverty through the empirical study in Bangladesh. The study also analyzes the model of Zakat collection and distribution to eradicate poverty. The hearts of wealthy people are purified from greed through giving Zakat to the needy and the needy people are then able to fulfil their needs. Thus, Zakat should be able to reduce the gap between the rich and the poor .Each year, the Rich people of Bangladesh provide Zakat. The Zakat fund is not collected and distributed properly in most of the cases. The important recommendations of this paper are the best ways to collect zakat from different sectors, organizations, Institutions as well as individuals and also to distribute in a systematic way to alleviate poverty from Bangladesh.