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Pakistan forms committee to implement interest-free banking system

Pakistan forms committee to implement interest-free banking system


Pakistan forms committee to implement interest-free banking system

ISLAMABAD – Finance Minister Ishaq Dar said on Saturday that the government had formed a committee to replace the conventional banking system with the interest-free system across the country.

The minister said that all stakeholders will be part of the committee that will chalkout a road map to achieve the desired aim of introducing interest-free banking system.

He said that the government has all appeals against the Federal Shariat Court’s verdict for interest-free banking system have been withdrawn in accordance with the decision.

Referring to PTI Chief Imran Khan s remarks about the country s economy, he said political leaderships should not compromise national interest for the sake of politics.

He said spreading lies through social media have been the doctrine of the necessity for Imran Khan’s politics to survive, urging him to avoid giving frivolous statements on the economy.

Earlier this month, the finance minister announced that State Bank of Pakistan and National Bank of Pakistan would withdraw their petitions from the Supreme Court of Pakistan against the judgment of Federal Shariat Court in which the Court had ordered implementation of interest-free banking system in the country.

He said that the government would also expedite its efforts to introduce Shariah compliant banking system in the country for rapid growth and promotion of Islamic bank and finance.

He further informed that during 2013-18 several steps were being taken to promote Islamic economic system and a special committee comprising on Islamic scholars were also formed, adding that Islamic Banking system also observed significant growth and progress at that time.

In April this year, the shariat sourt announced a landmark verdict stating that existing laws related to riba and interest are against Shariah and declared the Interest Act 1839 un-Islamic.

The three-member bench of court in its verdict said that it is the responsibility of the government to replace the existing system and bring laws in accordance to the guidance in Quran and Sunnah.

Interest payment on all interest and external debts by the government is Riba, the top Islamic court ruled and directed the government that transactions with international institutions including IMF and World Bank should be made interest free.