Poverty is multidimensional in nature.  As a result, there are different conceptualizations of Poverty.  In this paper, the focus is exclusively on the conventional and Islamic approaches to poverty and welfare.  All conventional approaches concentrate on the well-being of individuals, necessities of minimum needs, nutritional deprivation, basic needs, capabilities and vulnerability respectively. However, the most balanced and unique conceptualization of poverty is based on the Islamic approach.  A systematic study of the Qur’an, the traditions of Holy Prophet Muhammad (Peace be upon him), the conduct of righteous caliphs and the writings of early Muslim jurists would make it clear that the poor, indigent, and destitute are given adequate importance.  The Islamic state is responsible to assist and rehabilitate the poor and the needy.  One of the means of assistance and rehabilitation is Zakat.  Other means are Ushr, Sadaqat, Gifts and other assistance transfers to the poor and collectively all are called Infaq.  Based on the conceptual and theoretical evidence, the paper concludes that Islamic approach supports a poverty-alleviation strategy based on the principle of equality of opportunities for everybody.

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