ISLAMABAD: The Federal Shariat Court today declared interest-based financial system in the country against sharia after it announced its verdict in Riba case.
The three-member bench of the Federal Shariat Court in its verdict said that the existing laws related to riba and interest are against Shariah and it is the responsibility of the government to replace the existing system and bring laws in accordance to the guidance in Quran and Sunnah.
The court declared that banks and other financial institutions receiving interest is against the Shariah. “Receiving additional amount on loans and change in agreement also comes under riba,” it ruled and directed the government to following Shariah laws while finalizing agreements with Chinese government for CPEC projects.
The court further set a deadline of 31 December 2027 to fully implement court’s order on elimination of interest from the country and said that the government could also implement the decision prior to the deadline.
Jamaat-i-Islami chief Siraj ul Haq termed it a historic moment of the country and lauded the three-member bench that announced the verdict.
Previously, the Full Bench of the Federal Shariat Court comprising of Justice Muhammad Noor Meskanzai Chief Justice, Justice Dr. Syed Muhammad Anwar and Mr. Justice Khadim Hussain M. Shaikh reserved the judgment against Riba case on April 12.
The existing bench of the Federal Shariat Court headed by Chief Justice Muhammad Noor Meskanzai took keen in this case and during the Chairmanship of his lordship of the bench 34 hearings are conducted.
Petitioners, their Counsels, Jurisconsults, Amicus Curiae, Economists, Experts, Scholars, Chartered Accountants, Attorney General, and Advocate Generals advanced their arguments and the Court heard them with patience.
They also gave suggestions for the conversion of the existing banking system into Riba free Islamic Banking system.