Ishaq Dar calls for eliminating interest-based system from Pakistan

KARACHI: Finance Minister Ishaq Dar has called for elimination of interest-based system from Pakistan, saying that a committee had been constituted to ensure implementation of Islamic banking in the country, ARY News reported on Thursday.

The finance minister was addressing through video link on the occasion of ‘National Islamic Economic Forum – NIEF’s conference on Roadmap for Islamization of the Economy’ in Karachi.

Ishaq Dar said that a committee had been constituted to ensure implementation of Islamic banking in the country. “The subject of Islamic economic system is close to my heart. I desire and pray to eliminate the interest-based system from Pakistan at the earliest,” he said.

He said that during his tenure consisted on 2014-2017 he had taken Ribah-free initiative with the consultation and cooperation of all the stakeholders including State Bank of Pakistan (SBP), Security Exchange Commission of Pakistan (SECP), industrialists and prominent Islamic scholar Maulana Taqi Usmani and other scholars were onboard.

The minister further said that necessary steps were also taken at that time to eliminate Riba from banking system in the country.

He added that in 2016, a relaxation of two percent rebate was also allowed to them who were opting Sharia-based business system at par with Islamic banking system.

Ishaq Dar said that the Shariat Court in its verdict had given five year’s time span enabling banks to convert them from conventional banking to Islamic banking, however, he added, “With the cooperation of all the stakeholders, we could meet the criteria set for the conversion, before the stipulated time”.

He said that during the past PML-N government, the country was on right track in terms of economy and development was prevailing in the country adding that the consumer price index was also good besides the healthy reserves and indicators.

He said that he had directed the SBP and NBP to withdrawal their petitions and moved by them against the Riba-free banking from Pakistan.

The minister said that a committee had also been constituted comprising all the stakeholders for the conversion of existing banking to Islamic banking, adding the committee had asked him for his input for that his doors were always open for the cause.

Dar said that during the last few years, Pakistan which was economy-wise among top 24 countries with growing economy, now it was at 47.

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

The minister said that the current inflation, mismanagement and bad-governess in the country were due to the failed policies of the past government.

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.