Pakistan (Common Wealth) _ Finance Minister of Pakistan Ishaq Dhar, predicted that by 2027, the country would adopt an “interest-free” banking system to rescind its appeals of the Federal Shariat Court’s April judgment to abolish interest in the nation in five years.
The Federal Shariat Court (FSC) asserts that Pakistan’s current interest-based banking system violates Sharia law since Islamic law mandates that interest be absolute in all of its forms.
“On behalf of the federal government, I’m announcing with the approval of the prime minister and after consulting with the governor of the State Bank of Pakistan.
Minister further explained, “With the permission of the prime minister and in consultation with the governor of the State Bank of Pakistan, I’m announcing on behalf of the federal government that the SBP and National Bank of Pakistan will withdraw their appeals from the Supreme Court and our government will fully try to as quickly as possible implement an Islamic system in Pakistan.”
The government had nonetheless decided to withdraw the appeals in the coming days and turn Pakistan toward a “interest-free” direction within the allotted time, despite his acknowledgment that there would be difficulties in implementing the FSC’s ruling and that the entire banking system and its practices could not be immediately shifted to a new system as per the study
The issue was finally resolved by the top Islamic court after 20 years of protracted litigation.
The FSC’s 298-page ruling from April stated, “We are of the view that a five-year period is reasonably enough time for the complete implementation of our decision, i.e., convert the economy of Pakistan into, an equitable, asset-based, risk-sharing, and interest-free economy.”
The long-awaited decision stated, “Therefore, we would specify the 31st day of December 2027 as the date on which the decision shall take effect by way of the complete elimination of Riba (interest) from Pakistan.”
The article stated that in June, the State Bank of Pakistan, the nation’s top bank, filed a petition against the FSC’s judgment with the Ministry of Finance, the Ministry of Law, and the chairman of the Banking Council, among others, alleging that the FSC had disregarded the Supreme Court’s remand order.
It asked for the Federal Shariat Court’s decision to be overturned on appeal and for the scope of the issues mentioned in the judgment to be changed.
