Many Muslim scholars have upheld that the concept and practices of a modern Welfare State are Islamic. This article takes an issue with such a position. Such a notion can certainly make those Muslims happy who see no contradiction between Islam and the route of modernism taken by the modern West, but if one looks closely, this notion may be based on a poor understanding of the concept of welfare on one hand and the impact modern welfarism has had on non-Western societies on the other. This article explains the principle of welfare in Islamic sources and in the light of that principle, it appraises whether or not practices of modern welfare are permissible according to the Islamic principles. Second, it appraises efforts by some of nationstates within Muslim world (including Pakistan) to see whether, they are dedicated to the Islamic ideal or just following the path of Westernization. Third, this article revisits the notion of high consumption welfare state from an ecological point of view. Therefore, it raises questions about the legitimacy of the American dream and the possibility of the rest of the world following such a dream. Finally, the article argues that relative povertization of the filthy rich countries is better for world welfare rather than the World Bank waging a war on poverty. A change of consciousness in humanity in the light of shared spiritual principles can help us conceive a philosophically correct and contemporaneously viable concept of global welfare.