THE DEVELOPMENT OF ECONOMIC POTENTIAL OF PEOPLE IN PANDEMIC THROUGH EARNING ZAKAT DISTRIBUTION

ABSTRACT

Purpose: This research aimed to ascertain the people's economic progress throughout the pandemic via the distribution of productive zakat by BAZ/LAZ in Pekalongan. Theoretical Framework Zakat has evolved as a tool for economic growth and poverty reduction among the peoples of the regions during times of economic distress (Yusroni & Chadhiq, 2021). Zakat provides several benefits over the standard fiscal tools now available. Numerous ideas and theories have been advanced by specialists to address the issue of poverty (Alaro & Alalubosa, 2019;Iqbal & Mirakhor, 2011). However, not all ideas can be implemented and contribute to poverty reduction. It is anticipated that professional zakat administration and profitable usage would enable poverty reduction (Hoque, Khan, & Mohammad, 2015). Design/Methodology/Approach: Field research with a qualitative approach collects, manages, and distributes zakat funds, incredibly productive zakat at BAZ/LAZ in Pekalongan City. The technique is triangulation. Findings: The results showed that BAZ/LAZ in Pekalongan City had implemented effective zakat distribution programs, namely BAZNAS, LAZ Al Ummah, LAZISMU, and LAZ Central Java, while LAZINU had not implemented the effective zakat program optimally. In general, BAZ/LAZ in Pekalongan City used productive zakat to promote the potential of the people via various sorts of productive zakat initiatives throughout the pandemic. The primary objective of productive zakat is similar to that of BAZ/LAZ in Pekalongan City. According to defined protocols, the productive zakat distribution model is carried out precisely and accurately. Research, Practical & Social Implications Despite several challenges, the distribution of productive zakat continued throughout the COVID-19 epidemic. The effective zakat program emphasizes developing diverse models via creativity and innovation for people's economic growth to avoid poverty. Originality/Value The findings of the model of economic development of the people run by the mustahik also vary in the efforts carried out whose main objectives are to save, infaq, and develop businesses to avoid the problem of poverty. © 2022 The authors.