Financial System Transformation for Welfare and Sustainability

This volume responds to persistent financial instability, widening inequality, and recurrent sovereign debt crises associated with interest rate-centered monetary systems. It contends that these challenges are structural in nature and therefore necessitate comprehensive institutional redesign rather than incremental policy reform.Financial System Transformation for Welfare and Sustainability develops a systemic framework for restructuring finance beyond the conventional interest-based paradigm, employing Pakistan as an illustrative case study. It advances a critique of fractional-reserve banking and debt-based money creation, proposing instead a model centered on full-reserve deposit banking, distinct risk-based investment intermediation, and a benchmark anchored in an equity risk premium linked to real-sector returns. The analysis integrates reforms across monetary policy, banking architecture, capital markets, public finance, governance, and social finance, situating these within a unified ethical and institutional framework.By combining normative foundations with operational design and a phased transition strategy, the study prioritizes financial stability, equitable development, and shared welfare, offering scholars, regulators, and policymakers a practical and transferable blueprint for a more resilient, just and welfare-oriented financial system.