KARACHI: Finance Minister Ishaq Dar said on Wednesday that the country can become interest-free in five years as the Federal Shariah Court (FSC) had said in its verdict earlier this year.
Addressing a seminar held in Karachi, Dar said that banking system has become a necessity of life and transparent transactions can be ensured through it.
A seminar was held in Karachi under the aegis of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and Center for Islamic Economics in which religious leaders, businessmen, bankers and politicians from all schools of thought spoke about the “benefits”. Had a detailed discussion. of an interest-free economy.
The FSC decision, issued in April 2022, gave the government five years to implement an Islamic and interest-free banking system in the country, as the economic system of an Islamic country like Pakistan should be interest-free.
In his judgment, Justice Dr. Syed Muhammad Anwar said that the abolition of usury is fundamental to the Islamic system, adding that any transaction related to usury is wrong.
Abolition of usury and its prevention is in accordance with Islam. Interest taken in any form including loan comes under interest. Usury is absolutely forbidden in Islam,” the judgment said.
“If you make a sincere decision only for the pleasure of Allah, interest can be eliminated from the country in 5 years.”
Since then, religious parties and clerics have been demanding the government implement the verdict and have been forced to withdraw appeals against it.
Addressing the seminar today, the Finance Minister said that currently Islamic banking has reached 20 to 21 percent in the country and Islamic banking assets are 7 trillion rupees.
Agreeing with the speakers, Dar said that Islamic banking system is possible in the country.
He said that State Bank and other banks had filed appeals against the FSC’s decision, which have been withdrawn.
Resolution
A resolution was also presented at the end of the seminar asking the government to take concrete steps to implement the FSC decision and urging private banks to withdraw appeals against it.
“We welcome the FSC’s decision against usury and are concerned that private banks have not withdrawn their appeals against the decision,” the resolution said.
He asked the government to take immediate steps to implement the court order to see meaningful progress.
The resolution said that the government should take practical steps to end the interest-based system within the stipulated period.
The gathering demanded a ban on the Joyland film and also asked to amend the Transgender Act in accordance with Sharia.
Concerns were also expressed over the number of FSCs which have been reduced from 7 to 2.
State Bank Governor vowed to make joint efforts.
Committing concerted efforts to eliminate usury completely, State Bank of Pakistan (SBP) Governor Jameel Ahmed said Islamic banking’s market share has grown to 21 percent.
State Bank Governor said that we have withdrawn the appeal against the decision of Federal Sharia Court and State Bank is working to implement the decision of FSC.
The central bank has activated a high-level working group in this regard.
He said that Pakistanis want to get rid of the non-Islamic banking system.
Business magnate Arif Habib, founder of Arif Habib Group, acknowledged that Islamic banking is expanding rapidly in the country.
“Now Pakistanis want to get rid of the usury-based system,” he said and urged the clerics to guide the citizens who have become part of the prevailing system.
All schools are united on Islamic banking
Renowned religious scholar Mufti Taqi Usmani said that we all have to raise our voices unanimously to end the scourge of usury.
Addressing the seminar, the eminent religious scholar said that there is no difference in the stance of different schools of thought of Muslims on usury.
Interest-free banking should be introduced, the scourge of interest should be eradicated. There is a consensus on this matter.”
Mufti Usmani said that it is a good thing that scholars of all schools of thought are participating in the seminar. Sharia enforcement is the most important issue, but armed struggle for its enforcement is not permissible.
He said that the purpose of this seminar was to demand the government and related institutions to make practical efforts to eliminate usury.
According to earlier Acting President FPCCI Sulaiman Chawla, the business community considers usury as haram, but Pakistan pays 40% interest.
Chawla added that Islamic banking facility should be fully implemented in banks.
