Miftah and ulema discuss the implementation of Sharia in the banking system

ISLAMABAD: Federal Finance and Revenue Minister Miftah Ismail held a meeting with renowned Islamic scholars Mufti Muhammad Taqi Usmani, Dr Hussian Akbar, Dr Raghib Naeemi and Sheikh Azhar Iqbal on the implementation of Sharia in the banking system and the elimination of the Riba of Pakistan in the Finance Division. .

Minister of State for Finance and Revenue Dr Ayesha Ghous Pasha, SBP Governor, SECP Chairman, Finance Secretary, EAD Secretary, Law and Justice Secretary and senior officers attended the meeting .

The meeting reviewed the current status of Islamic finance operations in the country, the Supreme Court order and the Federal Shariah court ruling in the Sharia petition, as well as the discussion and research of advice in certain financial areas requiring more clarity for the implementation of sharia in the financial system. from the country.

Renowned Islamic scholar Mufti Muhammad Taqi Usmani and others highlighted the different aspects of the Islamic financial system and offered their suggestions for designing a public debt management framework through financing/structuring debt according to sharia.

Islamic scholars have also made suggestions for the implementation of a banking system on Islamic lines for monetary policy and the Islamic interbank system. It was also suggested that a separate section be created within the Ministry of Finance on Islamic financing.

The President, while emphasizing the Prime Minister’s guidelines on implementing a free system of Riba in Pakistan, endorsed the suggestions of the religious scholars and requested the relevant authorities to chart the program along the lines discussed.

The President further requested the organization of a meeting of religious scholars with the banking industry for further guidance and clarity on issues regarding the Sharia-compliant mechanism.

It can be said that the Federal Sharia Court in April had given the government five years to set up an Islamic and interest-free banking system in the country, stating that the economic system of an Islamic country like Pakistan should be interest-free .

“The abolition of riba and its prevention are in accordance with Islam. Interest taken in any case, including debt, falls into riba. Riba is completely prohibited in Islam,” the order said, adding that the government should ensure that internal and external loans and transactions are carried out interest-free, as well as transactions with international institutions, including the IMF and the World Bank.

Apparently, the attorney general had informed them that it would take time to get rid of the interest-based system in the country. However, the Shariat Court said that five years is enough to ensure the implementation of an Islamic and interest-free banking system in the country.

“The government should present an annual report on the system without interest to Parliament,” the verdict read.

It is pertinent to mention here that the State Bank of Pakistan (SBP) appealed the decision of the Shariat Court to the Supreme Court.

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