Market Regulation and Microfinance in Islamic Jurisprudence: A Study of Price Control, Hoarding, and Trade Integrity

Abstract

This article explores the legal and ethical foundations of market regulation in classical Islamic jurisprudence, focusing on the responsibility of the Islamic state to intervene in economic practices such as price fixing (taṣʿīr), hoarding (iḥtikār), and adulteration. Drawing upon Qur’anic injunctions, Prophetic traditions, and the views of renowned jurists from the four Sunni schools of thought, the study demonstrates that while Islam promotes free trade and economic autonomy, it also places a moral obligation on rulers to prevent exploitation and safeguard public welfare (maṣlaḥah).

The research critically analyzes the difference between justified and unjustified state intervention in pricing, the prohibition of monopolistic practices, and the necessity of ensuring market transparency. Through comparative insights with contemporary regulatory frameworks, particularly in modern Muslim states like Pakistan, the paper highlights how classical Islamic economic ethics remain relevant in addressing current market challenges. Ultimately, it argues that Islamic teachings advocate a balanced economic model neither laissez-faire nor over-regulated rooted in justice (ʿadl), trust (amānah), and social responsibility.

Keywords: Microfinance, Market, Price Control, Islamic Banking, Islamic Jurisprudence