Hafiz Naeem calls for elimination of interest-based system in Pakistan
- By Faiz Ullah Khan -
- Jun 22, 2026
KARACHI: Jamaat-e-Islami (JI) chief Hafiz Naeem ur Rehman on Monday urged the government to eliminate the interest-based financial system, saying the government is not serious about implementing the constitutional and judicial directives regarding the abolition of riba (interest).
Addressing a press conference in Karachi, Hafiz Naeem said a significant portion of the federal budget is consumed by debt servicing, adding that despite clear court rulings, the government has failed to take meaningful steps towards ending interest-based banking.
“The government claims it wants to abolish interest, but the opposite is happening. Instead of eliminating this system, it is being expanded,” he said.
Criticising the federal budget, Hafiz Naeem said it offered little relief to the public and would further increase the burden on ordinary citizens.
He noted that government employees had been granted a seven percent salary increase, while lawmakers had received 400% raises.
Hafiz Naeem said debt servicing payments would exceed Rs8 trillion, placing a heavy burden on the national economy and taxpayers. He argued that every increase in interest rates adds substantial costs to the economy and ultimately affects the public.
The Jamaat-e-Islami leader maintained that while the banking sector continues to grow and improve its profitability, the economic condition of ordinary Pakistanis is deteriorating.
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Referring to parliamentary discussions, he said even members from minority communities had spoken against the interest in the country, describing riba as prohibited and harmful to society.
He also criticised the taxation system, saying electricity bills are burdened with multiple taxes and surcharges.
Questioning the performance of the FBR, he said the public deserves greater transparency regarding tax collection and expenditure.
Notably, the 26th Constitutional Amendment provided constitutional backing for the elimination of riba and set January 1, 2028, as the deadline for the transition by state and private institutions.