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Ishaq Dar

SBP, NBP to withdraw petitions against judgment of interest-free banking: Dar

ISLAMABAD: Minister for Finance and Revenue Senator Muhammad Ishaq Dar on Wednesday said that State Bank of Pakistan and National Bank of Pakistan would withdraw their petitions from the SCP against the judgment of Federal Shariat Court in which the Court had ordered implementation of interest-free banking system in the country.

The minister said that in this regard he held several meetings and detailed discussions with the Governor, State Bank of Pakistan and under the special directives of Prime Minister, it was decided that both the SBP and NBP would withdraw their petitions against the decision.

He said that the government would also expedite its efforts to introduce Shariah compliant banking system in the country for rapid growth and promotion of Islamic bank and finance.

He further informed that during 2013-18 several steps were being taken to promote Islamic economic system and a special committee comprising on Islamic scholars were also formed, adding that Islamic Banking system also observed significant growth and progress at that time.

However, he said that from last few years the sector was completely neglected and no further progress was witnessed, adding that promotion of Islamic economic system and interest free banking was the top priority of incumbent government.

He said that government was also determined to overcome all the challenges faced for introducing interest free banking system and it will take all possible measures to take forward the interest free banking and economy for the prosperity of nation.

Jamait Ulema-e-Islam-Fazl (JUI-F) Maulana Fazl-ur-Rehman on Wednesday said an interest-free economic system was a blessing for the people.

Fazl, in a meeting with Finance Minister Mohammad Ishaq Dar who called on him, here, at his residence, said it would help building an Islamic financial system and boost economic activities in the light of Quran and Sunnah.

He also paid tribute to the finance minister and appreciated his bold decision for withdrawing the appeal of state and national banks from the apex court.

In the meeting, both dignitaries discussed future strategies and measures to expand the radius of Islamic banking across the country.

Later on, talking to the media, Fazl appreciated the unwavering efforts of Minister Dar to get Pakistan out of the Financial Action Task Force’s (FATF) grey list.

He said as long as Minister Dar was the finance minister, Pakistan’s economy was on the right track and it was improving with every passing day.

“Taking back the appeal against Federal Sharia Court’s decision against the use interest [in the banking sector] is a positive gesture and it has infused happiness in the nation,” he maintained.

Prime Minister’s Special Representative for Interfaith Harmony and Middle East Hafiz Muhammad Tahir Mehmood Ashrafi on Wednesday welcomed the initiative of the government to withdraw the application against the Federal Shariat Court (FSC)’s decision on usury from the Supreme Court.

Ashrafi who is also the Chairman of Pakistan Ulema Council, in a talk to APP, thanked Prime Minister Muhammad Shehbaz Sharif, particularly, Minister for Finance Mohammad Ishaq Dar to take such a bold step, abrogating the interest-based banking system in the country.

He said the withdrawal of the application from the apex court would pave the way to establish an Islamic society in the light of Quran and Sunnah.

He said it was a long-awaited desire of the people that the financial system of the country should be interest-free.

He said the elimination of Riba (interest) would give an unprecedented boost to Pakistan’s economy and take the country to new heights of economic development and prosperity.

Ashrafi assured his all out support to the government’s economic team on the behalf of Ulema and Mashaykh to bring reforms in the banking system as per Islamic injunctions.


Sana Mehmood

Sana Mahmood studied Business and Finance from Karachi and writes on a number of subjects particularly activities in Bourse etc.