Making Road to Makkah Accessible for Pakistanis: Proposed Model From the Experience of Indonesia and Malaysia
Keywords:
Hajj Funds Administration, Tabung Haji Malaysia (TH), Badan Pengelola Keuangan Haji (BPKH), Ministry of Religious Affairs & Interfaith Harmony (MoRA)
Abstract
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Hajj is one of the five pillars of Islam that is mandatory for every Muslim adult. For the
management of Hajj funds, countries like Malaysia, Indonesia, Nigeria and Maldives etc. have
established separate legal entities to provide services to pilgrims and administering the Hajj
deposits that it can benefit them in the shape of Halal returns. This paper aims to evaluate the Hajj
fund management of two economies i.e., Indonesia and Malaysia; analyzes the current structure of
management of Hajj funds in Pakistan. The study suggests an efficient model for Pakistan’s Hajj
fund management based on the best practices of Indonesia and Malaysia. The paper argues setting
up of an independent entity, whereby public can start saving at an early age by entering into
financial contract, thus efficient utilization of Hajj funds can be ensured that provides optimum
facilitation to the potential pilgrims of Pakistan at a reasonable cost.
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References
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Nasir, S., Khalid, M. (2004). Saving-Investment Behavior in Pakistan: An Empirical Investigation. The Pakistan Development Review, 43(4 Part II), 665-682. https://www.jstor.org/stable/41261020
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Rahman, K. (2000). Towards Islamic Banking: Experiences and Challenges: A Case Study of Pilgrims Management & Fund Board, Malaysia. Islamabad: Institute of Policy Studies.
Saudi General Authority for Statistics. (2024, April 01). Saudi General Authority for Statistics Hajj Statistics and its Publications (2018, 2019, 2020, 2021, 2022, 2023). Retrieved from https://www.stats.gov.sa/en/28
SBP Inflation Publication. (2024, May). State Bank of Pakistan. Retrieved from SBP: https://www.sbp.org.pk/publications/Inflation_Monitor/index2.htm
Siddiqui, A. A., & Naz, J. (2023, November 13). Express Tribune. Retrieved from tribune.com.pk: https://tribune.com.pk/story/2446100/hajj-fund-enabling-savings-with-economic-development
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Tabung Haji. (2024, May). Lembaga Tabung Haji. Retrieved from tabunghaji.gov.my: https://www.tabunghaji.gov.my/en/corporate-profile
Winosa, Y. (2017), Independent agency to manage Indonesia’s $6.7 billion hajj fund to start in Q4, Global Islamic Economic Gateway, available from: https://www.salaamgateway.com/en/story/independent_agency_to_manage_indonesias_6.7_bln_hajj_fund_to_start_in_q4-SALAAM26022017080529
Ahmad, A. (1995). Contemporary Experience of Islamic Banks: A Survey. In Elimination of RIBA from the Economy (pp. 369-393). Islamabad: Institute of Policy Studies.
Ahmad, M., Asghar, T. (2004). Estimation of Saving Behavior in Pakistan Using Micro Data. The Lahore journal of Economics, 9(2), 73-92. http://121.52.153.179/JOURNAL/vol9-NoII/04%20Mehboob%20Amhad%20and%20Tasneem.pdf
Baıg, U. (2016). Hajj management in Pakistan in the light of experience of Tabung Haji of Malaysia. International Journal of Islamic Economics and Finance Studies, 2(2), 13-40.
Bland, B. (2014), Indonesia taps $5.4bn Hajj fund for financial salvation, Financial Times, available from: https://www.ft.com/content/fe4fbfe4-956a-11e3-8371-00144feab7de [accessed on 2 Sept 2018].
Bianchi, R. (2004), Guests of God: Pilgrimage and Politics in the Islamic World, New York: Oxford University Press. https://doi.org/10.1093/0195171071.003.0007
Bona, M. A. (2023, January 30). JAKARTA GLOBE. Retrieved from jakartaglobe.id: https://jakartaglobe.id/news/govt-blames-rising-dollar-inflation-for-hajj-cost-hike
Burney, N. A., Akhtar, N., & Qadir, G. (1992). Government budget deficits and exchange rate determination: evidence from Pakistan [with Comments]. The Pakistan Development Review, 31(4), 871-882. https://www.jstor.org/stable/41259606
Cizakca, M. (2011), Islamic Capitalism and Finance: Origins, Evolution and the Future, UK: Edward Elgar Publishing.
Cochrane, P. (2018), “The Economics of Hajj”, ACCA Global, available from:https://www.accaglobal.com/gb/en/member/member/accountingbusiness/2018/07/insghts/economics-hajj.html
Digital Financial Services Group, State Bank of Pakistan. (2024). State Bank of Pakistan's Payment Systems Review. Retrieved from sbp.org.pk: https://www.sbp.org.pk/psd/pdf/PS-Review-Q1FY24.pdf
Gomez, E. T.; Padmanabhan, T.; Kamaruddin, N.; Bhalla, S. & Fisal, F. (2017), Minister of Finance Incorporated: Ownership and Control of Corporate Malaysia, Singapore: Springer.
Handley, P. (1997), Malaysia's Pilgrims Fund looks to the future, Institutional Investor-International Edition, 22(10), 28F.
Henderson, J. C. (2010), Religious tourism and its management: the hajj in Saudi Arabia, International Journal of Tourism Research, 13(6), 541–552. https://doi.org/10.1002/jtr.825
IRTI. (1995), The mobilization of investment resources in an Islamic Way and the management of Hajj. Jeddah: IRTI/IDB.
Ishak, M. S. (2011). Tabung Haji as an Islamic Financial Institution for Sustainable Economic Development. Proceedings of Economic Development & Research, 1(7), 236-240.
Iqbal, N. (2022, April 29). Dawn News. Retrieved from dawn.com: https://www.dawn.com/news/1687367
Jumali, E. (2018). Management of Hajj funds in Indonesia. Journal of Legal, Ethical and Regulatory Issues, 21(3), 1-9.
Lopez, L. (2004), “Malaysian Fund Undergoes Scrutiny”, The Wall Street Journal, available from: https://www.wsj.com/articles/SB110184230617387008
Lembanga Urusan, (2023). Tabung Haji’s Annual Report 2022. Kuala Lampur.
Mannan, M. A. (1996). Islamic Socioeconomic Institutions and Mobilization of Resources with special reference to Hajj Management of Malaysia. Occasional Papers 48, The Islamic Research and Teaching Institute (IRTI). https://ideas.repec.org/p/ris/irtiop/0048.html
MOIB. (2023, April 07). Ministry of information and Broadcasting. Retrieved from MOIB: https://moib.gov.pk/News/52535
Muneeza, A., Sudeen, A. S. T., Nasution, A. & Nurmalasari, R. (2018). A Comparative Study of Hajj Fund Management Institutions in Malaysia, Indonesia and Maldives. International Journal of Management and Applied Research, 120-134. Retrieved from www.researchgate.net: https://www.ijmar.org/v5n3/18-009.html
Muslim, S. (n.d.). Sahih Muslim, Vol. 1, Book 2, Hadith 21.
Nasir, S., Khalid, M. (2004). Saving-Investment Behavior in Pakistan: An Empirical Investigation. The Pakistan Development Review, 43(4 Part II), 665-682. https://www.jstor.org/stable/41261020
Onishi, N. (2010), In Indonesia, Many Eyes Follow Money for Hajj, New York Times, available from: https://www.nytimes.com/2010/08/06/world/asia/06hajj.html [accessed on 2 Sept 2018].
Quran. (n.d.). Al Baqarah 2:275.
Rachmawati, E. (2024, April 6). KOMPAS. Retrieved from kompas.id: https://www.kompas.id/baca/english/2024/04/06/en-pelunasan-biaya-haji-ditutup-kuota-jemaah-indonesia-terpenuhi
Rahman, K. (2000). Towards Islamic Banking: Experiences and Challenges: A Case Study of Pilgrims Management & Fund Board, Malaysia. Islamabad: Institute of Policy Studies.
Saudi General Authority for Statistics. (2024, April 01). Saudi General Authority for Statistics Hajj Statistics and its Publications (2018, 2019, 2020, 2021, 2022, 2023). Retrieved from https://www.stats.gov.sa/en/28
SBP Inflation Publication. (2024, May). State Bank of Pakistan. Retrieved from SBP: https://www.sbp.org.pk/publications/Inflation_Monitor/index2.htm
Siddiqui, A. A., & Naz, J. (2023, November 13). Express Tribune. Retrieved from tribune.com.pk: https://tribune.com.pk/story/2446100/hajj-fund-enabling-savings-with-economic-development
State Trading Organization. (2022). Annual Report, Maldives: State Trading Organization. State Trading Organization. Retrieved from https://sto.mv/Uploads/Report/2022.pdf
Tabung Haji. (2024, May). Lembaga Tabung Haji. Retrieved from tabunghaji.gov.my: https://www.tabunghaji.gov.my/en/corporate-profile
Winosa, Y. (2017), Independent agency to manage Indonesia’s $6.7 billion hajj fund to start in Q4, Global Islamic Economic Gateway, available from: https://www.salaamgateway.com/en/story/independent_agency_to_manage_indonesias_6.7_bln_hajj_fund_to_start_in_q4-SALAAM26022017080529
Published
2025-06-30
How to Cite
Jamal, H. A., & Sharif, S. (2025). Making Road to Makkah Accessible for Pakistanis: Proposed Model From the Experience of Indonesia and Malaysia. Islamic Banking and Finance Review, 12(1). Retrieved from https://journals.umt.edu.pk/index.php/IBFR/article/view/6648
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Copyright (c) 2025 Hafiz Arif Jamal, Saqib Sharif
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