FSC agrees to first define ‘Riba’

Published: March 14, 2017

ISLAMABAD: The Federal Shariat Court (FSC) on Monday agreed to define ‘interest’ and ‘Riba’ after resuming the hearing of a case on which it delivered a verdict 25 years ago.

The four-judge bench of the Shariat Court is headed by Justice Riaz Ahmad Khan.

In 1992, the FSC had termed ‘Riba’ repugnant to the injunctions of Islam in a case filed by the Jamaat-e-Islami (JI).

Later, hearing an appeal against the decision in 1999, the Supreme Court’s Shariat Appellate Bench upheld the FSC ruling, asking the then government to amend all banking laws and other statutes, prohibiting Riba, within two years.

Govt reluctant to swiftly move towards interest-free system

However, the government and some banks filed a review petition before the Supreme Court.

In 2002, the case was referred to the FSC by the Supreme Court to reconsider its ruling, which had declared interest or ‘Riba’ unacceptable. The apex court also directed the FSC to solicit input from contemporary jurists from the Muslim world. The matter has been pending before the FSC for the past 15 years.

On Monday, the FSC observed that the court will first define ‘Riba’ and ‘interest’ before deciding on its jurisdiction in this matter.

During the hearing, JI’s counsel Qaisar Imam and Dr Fareed Paracha appeared before the court.

Dr Muhammad Anwar, who is amicus curiae in the case, stated that the court should first define ‘Riba’ and ‘interest’ before issuing any ruling.

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

Agreeing with this proposal, the court adjourned the case for 15 days.

Last year, the State Bank of Pakistan (SBP) on October 29, 2015 had informed the FSC that the Constitution did not explicitly define ‘interest’ or ‘Riba’.

Salman Akram Raja, the counsel for SBP, had contended before the Shariat Court that the Constitution specifically mentioned eliminating interest, but did not define either ‘interest or Riba’.

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

Published in The Express Tribune, March 14th, 2017.

Facebook Conversations

Reader Comments (3)

  • Ruby
    Mar 14, 2017 - 12:33PM

    Lol, they don’t know what interest means?! It is obvious that Shari’a in its true spirit will make life unbearable for people including SBP and GOP. That is why they are doing this dance to somehow keep interest based banking while pretending to follow Shari’a. They have been disregarding Shari’a this long. Let’s see how they will follow the law now. Apparently this is what Pakistan’s economy needs right now. A ban on traditional banking.Recommend

  • Ali Moreno
    Mar 14, 2017 - 6:39PM

    This may be the most consequential court case in the world right now; may the jurists of Pakistan judge courageously and wisely.Recommend

  • mehmood
    Mar 21, 2017 - 9:57AM

    At the end of the day courts are courts and have supreme authority to interpret constitution not sharia…….Recommend

More in Pakistan