Riba case verdict: FSC declares interest against Shariah

ISLAMABAD: The Federal Shariat Court on Thursday declared interest-based financial system in the country against sharia after it announced its verdict in Riba case, ARY NEWS reported.

Jamaat-i-Islami chief Siraj ul Haq termed it a historic moment of the country and lauded the three-member bench that announced the verdict.

The three-member bench of the Federal Shariat Court in its verdict said that the existing laws related to riba and interest are against Shariah and it is the responsibility of the government to replace the existing system and bring laws in accordance to the guidance in Quran and Sunnah.

The court declared that banks and other financial institutions receiving interest is against the Shariah. “Receiving additional amount on loans and change in agreement also comes under riba,” it ruled and directed the government to following Shariah laws while finalizing agreements with Chinese government for CPEC projects.

We welcome the Federal Shariat Court (FSC) decision in the Riba case. The government and SBP will carefully study this important decision and then seek guidance and clarification from the FSC about the process, steps and timeframe to implement this decision.

— Miftah Ismail (@MiftahIsmail) April 28, 2022

The court further set a deadline of 31 December 2027 to fully implement court’s order on elimination of interest from the country and said that the government could also implement the decision prior to the deadline.

Previously, the Full Bench of the Federal Shariat Court comprising of Justice Muhammad Noor Meskanzai Chief Justice, Justice Dr. Syed Muhammad Anwar and Mr. Justice Khadim Hussain M. Shaikh reserved the judgment against Riba case on April 12.

The existing bench of the Federal Shariat Court headed by Chief Justice Muhammad Noor Meskanzai took keen and unprecedented interest in this matter.

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During the Chairmanship of his lordship of the bench 34 hearings are conducted.

Petitioners, their Counsels, Jurisconsults, Amicus Curiae, Economists, Experts, Scholars, Chartered Accountants, Attorney General, and Advocate Generals advanced their arguments and the Court heard them with patience.

They also gave suggestions for the conversion of the existing banking system into Riba free Islamic Banking system.