Un-Islamic Banking: Economists criticise PM’s loan scheme

ISLAMABAD: Bankers and economists have said that claim of the chairperson of the PM’s Youth Business Loan Scheme about issuing loans through Islamic banks to avoid un-Islamic system is impractical.

They said government has resorted to take help from the banks because it does not have enough funds. They have said that since the banks have no customers to borrow money, they have agreed to issue loans under the scheme as half of the markup on the loans will be paid by the government.

Expert on economic affairs Dr Saboor Ghayoor said the government was criticised for promoting interest system, therefore, to divert the attention, it has introduced the issue of loans through Islamic banks.

Published in The Express Tribune, December 13^th, 2013.