AGL 8.30 Decreased By ▼ -0.03 (-0.36%)
ANL 10.95 Increased By ▲ 0.25 (2.34%)
AVN 79.70 Increased By ▲ 1.51 (1.93%)
BOP 5.75 Increased By ▲ 0.18 (3.23%)
CNERGY 5.64 Increased By ▲ 0.26 (4.83%)
EFERT 79.36 Increased By ▲ 0.71 (0.9%)
EPCL 67.48 Decreased By ▼ -0.31 (-0.46%)
FCCL 14.89 Increased By ▲ 0.39 (2.69%)
FFL 6.70 Increased By ▲ 0.10 (1.52%)
FLYNG 7.16 Increased By ▲ 0.13 (1.85%)
GGGL 11.60 Increased By ▲ 0.26 (2.29%)
GGL 17.51 Increased By ▲ 0.27 (1.57%)
GTECH 8.35 Increased By ▲ 0.05 (0.6%)
HUMNL 7.17 Increased By ▲ 0.11 (1.56%)
KEL 3.14 Increased By ▲ 0.06 (1.95%)
LOTCHEM 35.20 Increased By ▲ 2.33 (7.09%)
MLCF 28.35 Increased By ▲ 0.05 (0.18%)
OGDC 87.70 Increased By ▲ 3.15 (3.73%)
PAEL 16.63 Increased By ▲ 0.18 (1.09%)
PIBTL 6.05 Increased By ▲ 0.20 (3.42%)
PRL 19.46 Increased By ▲ 1.34 (7.4%)
SILK 1.14 No Change ▼ 0.00 (0%)
TELE 11.41 Increased By ▲ 0.31 (2.79%)
TPL 9.20 Increased By ▲ 0.20 (2.22%)
TPLP 20.25 Increased By ▲ 0.37 (1.86%)
TREET 27.10 Increased By ▲ 0.48 (1.8%)
TRG 96.20 Increased By ▲ 1.70 (1.8%)
UNITY 20.85 Increased By ▲ 0.48 (2.36%)
WAVES 13.90 Increased By ▲ 0.27 (1.98%)
WTL 1.34 Increased By ▲ 0.03 (2.29%)
BR100 4,275 Increased By 67 (1.59%)
BR30 15,794 Increased By 348.3 (2.26%)
KSE100 42,872 Increased By 628.4 (1.49%)
KSE30 16,219 Increased By 247.6 (1.55%)
Business & Finance

Riba-based banking: SBP seeks guidance from Shariat Appelate Bench of Supreme Court

  • Requests guidance in implementation, practicalities of ending interest-based banking system
Published June 25, 2022

The State Bank of Pakistan (SBP) said on Saturday that it has sought guidance from the Shariat Appelate Bench of the Supreme Court for implementation and practicalities involved in ending the interest-based banking system by the end of 2027.

On April 28, the Federal Shariat Court (FSC) of Pakistan ruled that elimination of interest from the economic system was a religious and legal responsibility and ordered the government to end the interest-based banking system by the end of 2027.

The decision was made on petitions against Riba (usury) after the Supreme Court referred the case back to the court in 2002 following appeals against the decision of the FSC.

Federal Shariat Court declares interest-based banking as against Sharia

“After detailed review of the judgment and based upon the advice of our chief legal adviser and external counsel, we have sought guidance from the Shariat Appelate Bench of the Supreme Court in terms of its implementation and practicalities involved,” said the SBP in a statement.

“SBP welcomes the FSC’s Judgement of April 28, 2022 on Riba case, as has already been done by the finance minister. In particular, we appreciate the substantive part of the decision.

"As the prime custodian and regulator of the financial and monetary framework of the Islamic Republic of Pakistan, SBP is deeply committed to ensuring compliance with the injunctions of Islam, in particular those pertaining to Riba, while protecting the stability and security of the financial sector of the country that functions as part of the global financial system," the central bank stated.

Government asked to end riba-based banking system by 2027

It said that SBP was among the few regulators across the globe where comprehensive legal, regulatory and Shariah governance frameworks have been successfully developed and implemented.

Currently, 22 Islamic banking institutions (5 full- fledged Islamic banks and 17 conventional banks having standalone Islamic banking branches) with a branch network of 3,983 branches along with 1,418 Islamic banking windows (Islamic banking counters at conventional branches) are operational across the country, it said.

According to SBP, the industry now accounted for 19.4% of the country's overall banking system in terms of assets while in terms of deposits the share is 20% (as of March 31, 2022).

In addition, the SBP has also been taking measures to bring the legal and regulatory infrastructure in compliance with Shariah principles.

Comments

Comments are closed.

Abdullah Jun 25, 2022 09:51pm
Height of Hypocrisy. BIS who is father of central banks including yours SBP will never allow you to implement riba free system.
thumb_up Recommended (0)