Daily Times

Dar says SBP, NBP to withdraw pleas against Islamic banking imposition in Pakistan

ISLAMABAD: The government has decided to call off the central bank and a state-owned commercial bank’s appeals challenging the Federal Shariat Court’s (FSC) directives to completely replace the conventional banking system with a Shariah-compliant one by the end of 2027.

“With the permission of the Prime Minister and in consultation with the SBP (State Bank of Pakistan) governor, I am announcing on behalf of the centre that both the appeals will be withdrawn from the Supreme Court and the government will try its best to implement an Islamic banking system in Pakistan as soon as possible,” Finance Minister Ishaq Dar said in a press conference.

The FSC verdict, in this case, came in April 2022. The Shariat court in its ruling had stressed on the federal and the provincial governments to amend the laws to make the banking system free of interest.

Dar says SBP, NBP to withdraw pleas against Islamic banking imposition in Pakistan

In June this year, the State Bank of Pakistan (SBP) and four private banks challenged the decision of the FSC declaring the present interest-based banking system against the Sharia, directing the government to switch to an interest-free economy.

Salman Akram Raja filed an appeal on behalf of the SBP under Article 203F (1) of the Constitution with respect to the judgment passed by the FSC on April 28, 2022.

In its appeal, the SBP appreciated the spirit and the intent that led to the substantive provisions of the judgment delivered by the Shariat Court on April 28, 2022. However, it sought clarifications, as there are certain discrepancies in the judgment.