Pakistan to move away from interest-based banking system

According to a report in the media, the Pakistani government made an abrupt decision on Wednesday to proceed with the establishment of an interest-free Islamic banking system and to withdraw appeals filed against it in the Supreme Court in the coming days.

This was declared by Money Pastor Ishaq Dar on Wednesday, Samaa television announced.

Dar said in a televised statement that progress toward imposing an Islamic banking system had been hindered in recent years.

He revealed that the government was aware that the State Bank of Pakistan (SBP) and the National Bank, both government representatives in the banking and financial sector, had filed separate appeals against the Federal Sharia Court’s decision earlier this year to impose an Islamic banking and financial system.

According to Samaa TV, he stated, “Because this is ordained in the Holy Quran, and I believe the barometer of our decisions is the Quran and Sunnah, we all should follow it.”

According to the report, Dar stated that the government would make every effort to implement the Islamic banking system as soon as possible and that the central bank and the National Bank would withdraw their appeals in the Supreme Court with permission from Prime Minister Shehbaz Sharif and after proper consultation with SBP Governor Jameel Ahmed.

In addition, he prayed to the Almighty for guidance in enforcing this brand-new interest-free system.

Dar, on the other hand, pointed out that implementing this system will be difficult due to the fact that Pakistan’s entire banking system, which has been in use for the past 75 years, cannot suddenly switch to a different one.

He stated, “The government has decided in light of teachings of the Holy Quran and Sunnah, the government will withdraw the two appeals against the Federal Shariah Court’s verdict, and work will begin to implement the system within a defined timeline.”

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