Issue of maintainability: AGP’s word sought on plea against Riba-based system

Top court dismissed earlier petition as it is pending before the Federal Shariat Court

ISLAMABAD:

The top court has sought assistance from the attorney general of Pakistan to determine whether a plea calling for purging interest-based financial systems can be heard or not.

The three-judge bench, headed by Justice Azmat Saeed Sheikh, took up on Monday the review petition against the court’s October 6 order, dismissing the plea as the same issue has been pending before the Federal Shariat Court (FSC).

The plea seeking an order to eliminate ‘Riba’ (interest) was filed by Tanzeem-e-Islami Pakistan chief Hafiz Akif Saeed. The FSC has already issued certain directions to the government for the abolition of interest-based systems.

During the hearing on Monday, the plaintiff’s counsel challenged the Supreme Court’s order, contending neither any such directions were given by the FSC nor this issue was pending before it.

Advocate Raja Muhammad Irshad while referring to Article 38-F of the Constitution argued the state was bound to eliminate interest as early as possible but it had failed to enforce the laws.

The counsel contended it was beyond the FSC’s jurisdiction to direct the state for implementing Article 38-F but the constitutional authority available with the SC was much wider.

After hearing his arguments, the bench instead sought assistance of the AGP over the maintainability of review petition and adjourned the hearing till next week.

In 1992, the FST had declared Riba repugnant to the injunctions of Islam. Later in 1999, the SC’s Shariat Appellate Bench while hearing an appeal against the decision had also upheld the FSC decision. The then government was given two years to amend all the banking laws of the country and other statutes to prohibit Riba.

However, the government and some banks instituted another review petition before the apex court bench headed by then chief justice Sheikh Riaz. The bench remanded the case in 2002 back to the FSC to reconsider the matter.

The apex court had also directed the FSC to take input from contemporary jurists of the Muslim world. The case is still pending before the Shariat Court.

On October 29 last year, State Bank’s counsel Salman Akram Raja had contended before the Sharia Court that the Constitution specifically mentioned the elimination of interest but did not define Riba.

He explained that the economy thrives on financial instruments, including taxes and loans, and that the country should stay in touch with the global financial system in its own economic interest.

Published in The Express Tribune, February 16^th, 2016.