Interest-free economy: Govt forms committee to implement FSC verdict

ISLAMABAD: The federal government has formed a 13-member steering committee headed by Finance Minister Ishaq Dar for implementing the Federal Shariat Court’s (FSC) verdict for interest-free economy, ARY News reported on Friday.

The Finance Division notified the constitution of a 13-member steering committee to provide strategic guidance regarding the FSC verdict’s implementation for the interest-free economy.

According to the notification, the ex-Officio members included State Bank of Pakistan (SBP) governor, secretary finance, Securities Exchange Commission of Pakistan (SECP) chairman, the Pakistan Banks Association chairman, SBP FIDFS&IT deputy governor.

READ: ISHAQ DAR SAYS GOVT COMMITTED TO PROMOTE ISLAMIC BANKING IN PAKISTAN

Other members included President Wifaq-ur-Madaris Maulana Mufti Taqi Usmani, SBP Shariah Advisory Committee chairman Mufti Irshad Ahmad Aijaz, IBP President Mansur-ur-Rehman Khan, Pakistan Reforms and Resources Modernization Commission chairman Ashfaq Tola, Haidermota & Co senior partner Khozem A Haidermota, SBP ex-deputy governor Saeed Ahmad, Meezan Bank President Irfan Siddiqi and Sitara Chemical Industries CEO Mian Muhammad Adrees.

Moreover, the Executive Director of the SBP’s Islamic Banking Department will act as secretary of the steering committee.

According to the terms of reference (ToRs), the committee will provide guidance on the legal and regulatory reforms and actions required for the implementation of FSC’s judgement on Riba (interest).

READ: RIBA CASE VERDICT: FSC DECLARES INTEREST AGAINST SHARIAH

It will also suggest capacity-building measures for the stakeholders for full implementation of the verdict.

Moreover, it will monitor the progress of the implementation of the FSC’s judgement and remove the bottlenecks.

In November, Finance Minister Ishaq Dar had asserted that the federal government was committed to promote Islamic Banking in Pakistan and several steps were being taken with the cooperation of all the stakeholders.

Addressing a seminar at Karachi Chambers of Commerce and Industry, the finance minister assured that the government was committed to truly implement Federal Shariah Court’s (FSC) verdict on full conversion of conventional banking system into Islamic one; with deadline of December 2027.

The seminar was attended by Government representatives, Ulema from different schools of thought, business community leaders, bankers, researchers, academics and media persons.

It is pertinent to mention here that the Federal Shariat Court had declared an interest-based financial system in Pakistan against sharia after it announced its verdict in Riba case.