ISLAMABAD – Finance Minister Ishaq Dar announced that the government will withdraw the appeals filed against a verdict of Pakistan’s top Islamic court regarding interest free banking system in the country.
Taking to Twitter, the financial minister said that the decision has been taken under the leadership of Prime Minister Shehbaz Sharif in consultation with the Governor State Bank.
They also decided to promote interest-free banking system in the country on fast track basis.
In April this year, the Federal Shariat Court issued a landmark ruling, declaring the Interest Act 1839 of Pakistan un-Islamic, directing the government to replace the Riba-based financial system with Islamic system in five years.
The full bench of the top Islamic court headed by Chief Justice Muhammad Noor Meskanzai, and comprising Justice Dr. Syed Muhammad Anwar and Mr. Justice Khadim Hussain M. Shaikh had announced the judgment.
Justice Syed Muhammad Anwar announced the verdict, stating introducing interest-free banking system in Pakistan is possible as it is being practiced by some institutions in the country.
The court ruled that elimination of Riba is base of the Islamic system, adding that interest taken on any type of loan falls within the category of Riba, which is prohibited in Islam.
Following the verdict, the State Bank of Pakistan (SBP), National Bank of Pakistan and some private banks had moved the Supreme Court against the verdict.
Pakistan’s top Islamic court issues landmark ruling against interest-based financial system
