Islamabad November 9 2022: Federal government decided to withdraw petition against the Federal Shariat Court decision for Riba Free Banking system in Pakistan says federal Minister of Pakistan Ishaq Dar.
"We have taken this decision after detail deliberation with Governor of State Bank of Pakistan. Both National Bank of Pakistan and State Bank of Pakistan withdraw their petition against the Federal Shariat Court decision from Supreme Court of Pakistan. May Almighty Allah guide us to implement Riba Free Banking and we will take the petitions back in next few days" he added.
He says, " We will facilitate implementation of Riba Free Banking in the country on a fast track."
The Federal Shariat Court (FSC) on April 28, 2022 announced a verdict in a long-pending case on Riba (interest), declaring the prevailing interest-based banking system as against the Sharia and directed the government to facilitate all loans under an interest-free system.
In its decision, the Federal Shariat Court ruled that the federal government and provincial governments must amend relevant laws and issued directives that the country's banking system should be free of interest by December 2027.
As of March 31 2022, 22 Islamic Banking Institutions (5 full- fledged Islamic banks and 17 conventional banks having standalone Islamic banking branches) with a branch network of 3,983 branches along with 1,418 Islamic banking windows (Islamic banking counters at conventional branches) are operational across the country. The industry now accounts for 19.4 percent of the country's overall banking system in terms of assets while in terms of deposits the share is 20 percent.
Earlier on June 25 2022, SBP approached Supreme Court of Pakistan to sought guidance from the honorable Shariat Appelate Bench of the Supreme Court in terms of its implementation and practicalities involved.