Role of zakat to alleviate poverty and self sustainability: A case study of Bangladesh

Bangladesh is one of the developing countries with 180 million people and 8.2% gdp growth. Although at present it has little natural resource, its human resource is in abundance. Unfortunately this vital resource is not educated, skilled, equipped and organized. According to the statistics, A large number of SSC, HSC and graduated are being unemployed in Bangladesh. Most of the landless people live in so-called slum and living measurable life. The real problem in Bangladesh is the widespread poverty, which is a man-made phenomenon. About 45.3% living in rural and 35.4% living in urban areas in Bangladesh. Total poverty rate is 29.5% in Bangladesh (BBS2020). Despite some recovery, the number of the “new poor” in Bangladesh stood at 24.5 million, or 14.7% of total population, in March due to fallout of Covid-19 pandemic, a latest survey by Power and Participation Research Centre (PPRC) and Brac Institute of Governance and Development (BIGD) jointly. (Dhaka Tribune, 20 April 2021) Due to Covid 19 the poverty increased in Bangladesh. The Government has set the target to bring down poverty to 13.5 percent by 2021.(Islam & Bhuyian 2019) Government alone cannot solve the unemployment and poverty problems. To solve this problem Zakat can be a sustainable tool to eradicate poverty and unemployment. Unfortunately Zakat is not distributing properly in the majority Muslim country Bangladesh. The use of Zakat funds is able to provide the very poor with resources to start their own businesses and to move them away from poverty (Zuhairah and Fahme, 2011). Scenario is totally opposite in other countries Zakat management. “Entrepreneurial Asnaf Programe” is run by Zakat fund in Selangor, Malaysia. Aim of this program is eradicate poverty by creating entrepreneurship among the poor by utilizing Zakat fund as a capital. Managed by Lembaga Zakat Selagnor, Malaysia (Hazlina et al., 2012). In Bangladesh the distribution and implementation of Zakat is successfully taking place in Pallabi, Mirpur. Compared to conventional micro-credit programs, zakat-based social-welfare program, Shokkhom, by Obhizatrik Foundation, is more efficient in ensuring welfare of its group members. To find out Zakat based livelihood projects functioning and success story in Mirpur, Dhaka the data collected from both primary and secondary sources.