The PHC chief justice maintained the court had ordered the government to curb interest-based business in the private sector eight months ago. PHOTO: PPI
The Peshawar High Court (PHC) on Friday again directed the provincial government to pass the necessary legislation to end interest-based lending in Khyber-Pakhtunkhwa (K-P).
While hearing the case regarding repayment of a loan with interest, PHC Chief Justice Dost Muhammad Khan directed K-P Advocate General to inform the government of the required legislation, claiming the practice is compelling people to sell their daughters.
“People give their daughters after failing to pay back loans. A case was reported wherein a man gave his 17-year-old daughter because he couldn’t pay back a loan with high interest. There are people who lend money on 35% interest,” said Justice Khan.
The PHC chief justice maintained the court had ordered the government to curb interest-based business in the private sector eight months ago. However, the government had failed to do anything in this regard, after which another reminder was issued on July 18, he added.
Justice Khan said if it was not possible to stop the practice in the banking sector, a law should be enacted to discourage interest-based business in the private sector. “We had directed the previous government, but nothing was done.
K-P Advocate General Latif Yousafzai told the court he would communicate the order to the provincial government, adding efforts will soon be made to curb the practice in the private sector. Yousafzai said all stakeholders would be taken into confidence before the measure.
On July 18, a two-member bench comprising PHC Chief Justice Dost Muhammad Khan and Justice Qaiser Rashid directed the K-P government to end ‘Riba’ by passing a bill against interest-based trade while hearing suo motu notice taken over increasing use of interest in private businesses. The bench termed Riba, or interest, the main reason for all misdeeds in society.
Additional Advocate General Naveed Akhtar had then informed the court a bill was ready to be tabled in the provincial assembly, however, it could not be passed before the erstwhile government’s tenure ended.
Published in The Express Tribune, September 21st, 2013.
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So does that mean banks cannot also lend and borrow money on interest in K-P?