Top cleric suggests using gold, silver currency

Published: April 27, 2016
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Chairman Council of Islamic Ideology, Maulana Muhammad Khan Sheerani. PHOTO: FILE

Chairman Council of Islamic Ideology, Maulana Muhammad Khan Sheerani. PHOTO: FILE

ISLAMABAD: Pakistan’s top Islamic legislative advisory body has suggested abandoning paper currency in favour of gold and silver coins while urging the government to adopt an Islamic economic system.

The proposition came through Council of Islamic Ideology (CII) Chairman Maulana Mohammad Sheerani at a seminar organised by the council on Tuesday. The conference was held to discuss the fundamentals of Islamic economy and the current problems facing the country.

CII authorised to issue Fatwas on any issue: Maulana Sherani

“The economic system based on paper currency is not strong enough and silver and gold currency is the more acceptable medium,” believed Sheerani while addressing the participants.

He added the council would start a debate on introducing the silver and gold currency system in the country.

Sheerani, who is also a member of upper house of parliament from the JUI-F, claimed there was a dire need to introduce an international Islamic economic system. “It will be a positive sign when the debate starts internationally,” he said.

According to the religious scholar, there are three economic philosophies: capitalism, communism and Islamic. “The first two are based on human exploitation and their basic objective is to earn and to grow,” he believed. “In the Islamic economic system, however, the basic objective is to protect the human being.”

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The seminar was attended by a large number of people as 25 religious scholars were invited to speak on the topic.

The CII chairman said the basic objective of the seminar was to create awareness about Islamic laws.

The gold dinar coin was used throughout much of the Islamic world from the 8th century onwards and survived in parts of Africa until the 19th century. No country, except some parts of Indonesia and Malaysia, use the Islamic currency in the modern world.

Published in The Express Tribune, April 27th,  2016.

 

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Reader Comments (20)

  • Imran Qadri
    Apr 27, 2016 - 9:54AM

    Maulana Sb,how do you expect common citizen to check counterfeit gold coins? Paper currency has many inbuilt security features which coins can’t have. Previously a Rs1 and Rs2 coin was short in market because people in metal trade melted it and consumed it as rate of that metal increased. Now a cheaper version of Rs 1 & Rs2 coin is introduced. Mixing in gold is too common. Recommend

  • Tauha
    Apr 27, 2016 - 10:39AM

    paper currency backed by gold is the correct way not the fractional system where banks create money out of nowhere based on nothing.Recommend

  • wiserneighbour
    Apr 27, 2016 - 10:46AM

    I am glad that Pakistan got separated from India.How someone will tolerate such lunatics? Going back to medieval times?Recommend

  • Saad
    Apr 27, 2016 - 10:58AM

    Something is seriously wrong in the Islamic world and nobody has authority to fix it. Complete intellectual bankruptcy has set in and these people are influencing more and more Muslims to think like them.Recommend

  • Rollin & Trollin
    Apr 27, 2016 - 11:02AM

    The ‘top cleric’ can lead the way by using his gold teeth as legal tender !Recommend

  • Haroon
    Apr 27, 2016 - 11:17AM

    Countries that have attempted this have been promptly invaded by the US. They won’t allow any alternative to the US dollar. Besides modern economics does not agree with commodity money. Recommend

  • Haji Atiya
    Apr 27, 2016 - 11:36AM

    @Tauha:
    Ideally it should not be based on “nothing” but on the strength and productivity of a country’s economy as it interacts, thru trade and investment, with the global economy ! A currency tied to gold would therefore have a very restraining effect on an economy that is trying to expand simply on the basis of how much gold reserve it possesses.Recommend

  • Murgha
    Apr 27, 2016 - 12:20PM

    @Last Man Alive:
    You better rest in peace. Recommend

  • Ahmed
    Apr 27, 2016 - 12:49PM

    Instead of going backwards, how about we move forward. UK govt is exploring the use of bitcoin which have a full digital trail of transactions making corruption impossible by bringing transparency.

    https://www.theguardian.com/technology/2016/apr/26/bitcoin-blockchain-tracking-taxpayer-money-minister

    But alas, we have people like Maulana sahib advising on the future of Pakistan instead of someone educated and aware of the modern world and the realities of this world.Recommend

  • normskyy
    Apr 27, 2016 - 12:54PM

    What he’s saying is actually debated by leading economists alike

    http://www.bbc.co.uk/news/business-18644230

    However – I have no doubt that in a country where 25 million children are out of school with 50% suffering from stunted growth this is really not the type of thing to be debating. Making an issue for the sake of it when the ground realities slapping you across the face are saying something else. This illusion that many maulanas have of debating a utopian system when in reality the problems on the ground are completely ignored. The maulanas haven’t even been able to convince a large minority of people that vaccination is actually important – so I don’t have much hope in them doing anything for this. Idle talk as usual.Recommend

  • Najaf
    Apr 27, 2016 - 1:35PM

    These so called leaders like to create chaos, unrest and to play with minds of people because this is the only way they know how to rule. This is the same guy who said yesterday that panama leaks is conspiracy of west against Pakistan. These leaders instead taking Pakistan into better future, they want to keep in dark ages so nobody can question themRecommend

  • Syedpk
    Apr 27, 2016 - 1:41PM

    Well honestly speaking he is saying something sane for a change. But now is not the time.
    To all the naysayers above, gold currency/silver currency means the paper currency fixed to either gold or silver in value. that means no devaluing of the currency. Which makes sense, as someone from 80s might have worked really hard to save for example 50 thousand rupees, which was a lot at that time, but the same amount now is peanuts, because the currency has been devalued and is not tied to anything. This floating currency concept was only introduced in the economic system around 1920s before that it was always gold back currency.Recommend

  • Rollin & Trollin
    Apr 27, 2016 - 2:20PM

    They are not debating the use of gold coinage but rather whether going back to the gold standard is warranted ! Two different things.Recommend

  • mirestan
    Apr 27, 2016 - 2:30PM

    Please come out of 6th century, this is year 2016 ?Recommend

  • Levi Silverstein
    Apr 27, 2016 - 3:40PM

    @wiserneighbour:
    Medieval? Last time I checked Central banks were amassing gold like crazy. Yuan pricing for dollar is coming online too. Recommend

  • Danish
    Apr 27, 2016 - 3:49PM

    Read James Rickards “Death of Money” and “The New Case for Gold”. Then check your conclusions. Also read about Bretton Woods System and why it collapsed. We are not robots but a conscious humans, defy or accept but with REASON.Recommend

  • Apr 27, 2016 - 5:07PM

    @Rollin & Trollin: Sir, you are 101 percent correct. This mullah does not know it takes more than sufficient economic strength to buy, sell, and maintain the desired level of physical reserves to stabilize the currency. He, Fazlu bhai and all JUI party members should disgorge their hoardings of gold and silver…….if any. SalamsRecommend

  • siesmann
    Apr 27, 2016 - 10:39PM

    @Rollin & Trollin:
    Read;It says Gold and Silver coinsRecommend

  • Anon
    Apr 28, 2016 - 1:49AM

    The question is… how many economists were at this convention? Or alternatively, how many of the scholars are well-versed in economics?Recommend

  • Rashad
    Apr 29, 2016 - 3:26PM

    A lot of ignorance here, especially from Muslims unfortunately. Either way, the savings you have today will not equal what you have 10 years from now. Inflation will make sure of that. Gold on the other hand will always keep its value. Banks hoard gold but the comments from some of you prove that mass brainwashing works. Your trust in fiat money is disgusting. Recommend

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