This was followed in 1960 by the Awqaf Ordinance and West Pakistan Waqf Properties Rules, which effected wholesale nationalisations. According to the Rules, the endowments were to pass into the hands of the state in obvious violation not only of the Islamic law but also of the Mussalman Waqf Validating Act, 1913 which, as we know, was one of the greatest achievements of the founder of Pakistan.
The main motives for centralization of the waqfs were also similar to the rest of the Islamic world.
The scheme is formulated in compliance with Part C of the IV schedule of Income Tax Act and tax benefits are available as provided in Income Tax rules Liability on account of gratuity experiences sharp increase every year due to its nature of its computation.
Apart from increase in service, increase in salary also contributes to increase in liability substantially as the benefits are payable on last drawn salary.
Primarily, the right to appoint a mutawalli is given to the waqif himself.
As a rule, however, only profitable endowments were nationalised.Hence funds have to be invested in a conservative way with a consistent growth and insulated from market risks The unique advantage with LIC is the contributions made by the company and interests credited by LIC are irreversible.This ensures highest level of safety for the total corpus and consistency in future contributions. After dedication, ownership of the property is vested in God and becomes His property.There must be some person or a human agency who could look after the dedicated property on behalf of God.