Business

Federal Shariat Court gives govt 5 years to implement Islamic, interest-free banking system

Published

2 years ago

Farwa

Federal Shariat Court says economic system of an Islamic country like Pakistan should be interest-free.
Court directs govt to immediately remove word interest from all banking and other laws.
Says transactions with international institutions, including IMF and World Bank, should be made interest free.

The Federal Shariat Court on Thursday 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 free of interest.

Justice Dr Syed Muhammad Anwer read out the verdict that was reserved by a three-member bench of the Federal Shariat Court. The court had reserved its verdict on April 12 after hearing all the parties and the attorney general.

The verdict stated that abolition of riba is fundamental for an Islamic system, adding that any transaction involving riba is “wrong”.

“The abolition of riba and its prevention is in accordance with Islam. The interest taken in any case, including debt, falls into riba. Riba is completely forbidden in Islam,” said the Federal Shariat Court.

The Shariat court’s verdict also stated that interest given on external and internal loans by the government also falls under riba.

“The government should ensure that internal, external loans and transactions should be made interest-free. Transactions with international institutions, including the IMF and World Bank, should be made interest free as well,” said the court.

The court stated that Islamic banking and a banking system free of interest are two different things.

“Pakistan already has an interest-free banking system in some places [but] riba should end in Pakistan. The economic system of an Islamic country like Pakistan should be interest-free,” said the verdict.

The verdict stated that China, as per Islamic Shariat, is heading towards an interest-free banking system. It also directed the government to immediately remove the word interest from all banking and other laws.

The verdict also stated that the attorney general had informed them that it would take time to get rid of the interest-based system in the country.

The Supreme Court’s Shariat Applet Bench in 2001 had ordered the implementation of the order to abolish the interest system.

The court, giving the government five years to implement an interest-free banking system in the country, ordered that such a system should be implemented in the country by December 31, 2027.

The court stated that had Article 38-F been implemented years ago then the riba would have ended. It added that the State Bank of Pakistan, in its report, had stated that 20% of banking had shifted to the Islamic system. It added that five years is enough time to ensure the implementation of an Islamic and interest-free banking system in the country.

“The government is expected to present an annual report on the interest-free system in Parliament,” said the verdict. The court also declared the Interest Act 1839 and all laws and provisions facilitating interest as unlawful.

Business

There are US$13,280.5 million in foreign exchange reserves in Pakistan.

Published

20 hours ago

Farwa

According to a representative for the central bank, as of April 19, 2024, the nation’s total liquid foreign reserves were valued at US$ 13,280.5 million. A loss of US$74 million left the State Bank of Pakistan’s foreign reserves at US$7,981.2 million.

Commercial banks have $5,299.3 million in reserves for Pakistan.

In the week that concluded on April 12, the State Bank of Pakistan’s (SBP) foreign exchange reserves increased by $14.4 million to $8.055 billion.

“In a weekly statement, SBP stated that it has repaid US$ 1 billion in principal and interest on Pakistan’s International Bond, which matures this week.”

But at $13.374 billion, the nation’s total reserves decreased by $68 million. In the same way, commercial banks’ reserves dropped to $5.319 billion, a reduction of $82 million.

Business

NIMA seminar to increase Pakistan’s ship recycling industry’s capacity

Published

20 hours ago

Farwa

According to a release, important players from a range of maritime industries attended the conference to discuss issues facing the shipping sector.

It further stated that the symposium cleared the path for the resurgence of a sustainable future in ship recycling.

Participants in the conference included representatives of the Gadani Ship Breaking Labour Union, PSBA, KS&EW, KPT, PMSA, GEMS, and the federal and Balochistani governments.

Furthermore, global perspectives and ideas were offered by international specialists such as Rabia Razzaque from UN-ILO and Professor Raphael Baumler from the World Maritime University.

The seminar emphasized Pakistan’s capacity to emerge as a pioneer in the field of environmentally friendly ship recycling.

In order to protect the environment and the safety of employees, the participants emphasized the importance of following international standards and regulations.

During his speech, Chief Guest Senator Nisar Ahmed Khoro emphasized the importance of the maritime industry’s resurgence and the crucial necessity for coordinated efforts from all parties involved.

A new age of economic prosperity, worker safety, and environmental responsibility for Pakistan’s maritime industry was called for as he urged the stakeholders to work together on a comprehensive SENSREC program.

Vice Admiral Ahmed Saeed (Retd), the president of NIMA, emphasized the significance of environmental stewardship and safety in ship recycling procedures.

Business

Inflows into the Roshan Digital Account surged to $7.660 billion on March 24.

Published

20 hours ago

Farwa

According to the data, remittance inflows for the month of March totaled US$ 182 million, whereas they were US$ 141 million in February and US$ 142 million in January 2024.

Millions of Non-Resident Pakistanis (NRPs), including those who own Non-Resident Pakistan Origin Cards (POCs), can now engage in banking, payment, and investing activities in Pakistan with the help of these accounts, which offer cutting-edge banking solutions.

According to a statement from the State Bank of Pakistan, the number of accounts registered under the program increased by 11,091 from 668,701 accounts in February 2024 to 679,792 accounts in March 2024.

As of March 2024, the central bank reported that foreign nationals of Pakistan have invested US $312 million in Naya Pakistan Certificates, US $528 million in Naya Pakistan Islamic Certificates, and US $31 million in Roshan Equity Investment.

It is important to note that former prime minister Imran Khan introduced the Roshan Digital Account initiative in September 2020 with the goal of giving Pakistanis living abroad access to digital banking services for the first time.