JK News Today
In a major decision that will have far reaching economic consequences , Pakistan government will move away from the interest based banking. Interest factor will be taken out of it.
Dawn newspaper reported and highlighted some aspects of the new banking system in the country.
• Govt decides to withdraw SBP, NBP appeals against Federal Shariat Court’s Riba verdict
• Dar says govt to implement FSC’s decision as soon as possible to rid country of interest
• Insists lot of progress towards Islamic financial system made between 2013 and 2018
• Stresses govt trying to make decisions as per teachings of Quran, Sunnah
ISLAMABAD: After challenging the Federal Shariat Court’s (FSC) decision on the interest-free banking system some four months ago, the government had a major change of heart on Wednesday, saying that it now wants to rid the country of Riba as soon as possible.
In a pre-recorded video message, Finance Minister Ishaq Dar announced that the State Bank of Pakistan (SBP) and the National Bank of Pakistan (NBP) would be immediately withdrawing appeals against an April decision of the FSC in which it gave the government five years to eliminate Riba (interest-based) banking from the country.
“With the permission of Prime Minister Shehbaz Sharif and consultations with the SBP governor, I am announcing a decision of the PDM [Pakistan Democratic Movement] government that both the SBP and NBP would withdraw their appeals filed in the Supreme Court of Pakistan against the FSC order within the next few days,” Mr Dar said.
He said the FSC had in the recent past given a judgement to transform the country’s banking system and end the interest-based financial system within five years as required by the Holy Quran and Sunnah.
Interestingly, Mr Dar’s predecessor, Miftah Ismail, announced in June that the NBP had been directed to withdraw its appeal in the apex court filed against the FSC judgement, but no progress took place on the ground.
In December 1991, the Federal Shariat Court declared interest-based banking in all forms and manifestations against the teachings of Islam and set a deadline for its elimination in the country by June 1992.
