In other words...
In other words, ethics is subsumed under practical wisdom (hikmat-e `amali) and reality is subsumed under theoretical wisdom (hikmat-e nazari); therefore, we cannot apply the principles of practical wisdom to reality, for theoretical wisdom deals with facts as they are or were; whereas practical wisdom is confined to man and deals with things as they ought to be-that is, as to how man is to conduct himself-and hence is prescriptive (insha).
But the nature of theoretical wisdom is descriptive (ikhbar), that is, it deals with the question as to whether a certain proposition corresponds to facts or not, and if it is does, whether it is eternally true. But such questions do not arise in ethics. In our philosophical literature, theoretical reason and practical reason are regarded as two different types of human faculties. But Muslim philosophers did not discuss their features and differences in sufficient detail.
However, they have left useful hints concerning the issue. They suggest that the former faculty is inherent in the soul by means of which it tries to discover the external world; whereas the latter consists of a series of perceptions of the soul, which administers the body, for the body's management. Practical reason is considered to be a natural arm of the soul and theoretical reason as a metaphysical arm.
Thus the soul possesses two perfections: theoretical perfection and practical perfection (the philosophers hold that the essence and nature of human being is knowledge and its perfection lies in knowledge, whereas the mystics do not consider knowledge as the ultimate perfection of man and are of the view that a perfect man is one who attains to reality not one who discovers it).
Regarding the faculty of practical reason, they hold that the soul as the administrator of the body is subject to certain principles for better governing the body as a prelude to its attaining perfection. Early Muslim philosophers defined justice in terms of freedom (justice in body).
The soul stands in need of-the body and it cannot attain theoretical perfections without it, but in order that the soul should be able to make the best use of the body, it must establish a kind of balance between its faculties. The faculty which establishes such a balance between. soul and body is an active faculty. In case this balance is established, the soul is not dominated by the body, rather it is the body which is subordinated to the soul.