Daily Times

Irfan Iqbal Sheikh, president FPCCI, has said that the business community supports the transformation of Pakistan’s economy and banking system to a Riba-free system in accordance with the decision of the Federal Shariat Court (FSC); which requires ban the Riba (interest) from the economy and banking system completely in a period of five years. FSC has set 2027 as the deadline for the complete ban on interest; terming it enough time period to implement the decision. The verdict requires the government to make the necessary regulatory changes to facilitate the migration to an interest-free financial system possible, he added.

FPCCI Chief has called upon transforming Pakistan’s economy and financial system into an equitable, asset-based, risk-sharing, and interest-free economy to avoid the ills and risks that come along with an interest-based system.

Mr. Irfan Iqbal Sheikh maintained that Islamic banking has been enhancing its operations successfully and prudentially in Pakistan; and, the market share of deposits and assets of Islamic banking in the total banking industry was 19.4pc and 18.6pc, respectively, for the year 2021. Additionally, net financing by Islamic banking institutions rose by 38.1pc in 2021; which is very strong growth in financing by any standard.

Mr. Irfan Iqbal Sheikh apprised that, on a macroeconomic scale, Pakistan’s total revenue collection is expected to be Rs7t in the fiscal year 2022 – 23 and out of which Rs4t will go towards debt servicing & interest payments; which will be approximately 56pc of the total collection.

Mr. Suleman Chawla, SVP FPCCI, has demanded that the Ministry of Finance, Ministry of Law, Banking Council, and other stakeholders should come together and work towards making Pakistan a Riba-free country. He added that the prohibition of Riba (interest) was absolute in all its forms and manifestations; as per the injunctions of Islam and in accordance with the Holy Quran & Sunnah.

Furthermore, Irfan Iqbal Sheikh proposed that SBP should come up with a clear roadmap and framework for conversion of the interest-based system to an interest-free system in the permitted timeframe of five years; in line with FSC’s verdict and without employing any delaying tactics.