On prime minister's directive: Govt constitutes task force for elimination of Riba

[muhammadhafeezmalik]

On the directive of prime minister, the government has constituted a task force for the elimination of Riba. The government has decided to file a review petition in the Supreme Court of Pakistan for elimination of Riba from the banking sector and all steps will be taken to implement this decision in true letter and spirit.

https://twitter.com/x/status/1549636028113223681

The official announcement made by the Ministry of Finance on Tuesday stated that Federal Minister for Finance and Revenue Miftah Ismail held a meeting with renowned Islamic scholars Mufti Muhammad Taqi Usmani, Dr Hussain Akbar, Dr Raghib Naeemi and Shaikh Azhar Iqbal on the implementation of Shariah in the banking system and elimination of Riba from Pakistan at the Finance Division.

The Minister of State for Finance and Revenue, Dr Ayesha Ghous Pasha, SBP governor, chairman SECP, secretary Finance, secretary EAD, secretary Law & Justice and senior officers attended the meeting. The meeting reviewed the current state of the Islamic Finance operations in the country, order of the Supreme Court and Federal Shariat Court’s decision. The meeting discussed and sought guidance in certain financial areas requiring more clarity for the implementation of Shariah in the financial system of the country.

Renowned Islamic Scholar Mufti Muhammad Taqi Usmani and others shed light on the different aspects of Islamic financial system and gave their suggestions for designing a framework for handling of public debt through Shariah-complaint financing/debt structure. The Islamic scholars also proposed suggestions for the implementation of banking system on Islamic lines for monetary policy and Islamic interbank system. It was also suggested that a separate section should be created in the Finance Ministry on Islamic financing.

The chair emphasising the directive of the Prime Minister on the implementation of Riba free system in Pakistan endorsed the suggestions of religious scholars and asked the relevant authorities to chalk out the programme based on discussions. The chair further directed for arrangement of meeting of religious scholars with banking sector for more guidance and clarity on the issues on Shariah-compliant mechanism. Official sources said that the prime minister of Pakistan has directed to constitute a taskforce to propose a way forward and a concrete plan for elimination of Riba from Pakistan in the light of the Federal Shariat Court's decision in Shariat Petition No. 30/L/1991 dated 28-04-2022. In this regard, a meeting was held on 19-07-2022 under the chairmanship of the federal minister for Finance. Composition of the Taskforce:

i) Federal Minister for Law & Justice, Chairman ii) Maulana Asad Mahmood, MNA Member iii) Riaz Pirzada, MNA Member iv) Qamar Zaman Kaira (Representative, of (PPPP) Member v) Governor State Bank of Pakistan, Member vi) Chairman, SECP, Member vii) Secretary, Finance Division, Member viii) Secretary, Economic Affairs Division, Member ix) Secretary, Law & Justice Division, Member x) Mufti Taqi Usmani, Member xi) Sheikh Azhar Iqbal Member xii) Mufti Qasim Attari Member xiii) Dr. Muhammad Hussain Akbar Member xiv) Dr. Raghib Naeemi Member xv) Additional Finance Secretary (IF), Finance Division Secretary

According to Terms of Reference of Task Force suggested to (a) Assess and review the current state of Islamic Finance operations in the country (b) Review the order of the Supreme Court whereby the case was remanded back to FSC and review the order of the FSC to assess whether all the questions framed in the Supreme Court order have been suitably addressed in current FSC order. (c) Identify areas where implementation of the FSC order can require more focus and effort, for example foreign currency finance and foreign trade, and suggest a mechanism and plan in these particular cases. (d) Identify the gaps in the Federal and Provincial laws and suggest appropriate amendments in the laws so as to align them with the principles of Shariah with respect to Riba. (e) Recommend practical solutions for conversion of the Public Debt into Shariah compliant financing/debt. (f) Provide guidance on Shariah compliant monetary policy and Islamic interbank offer rates (replacement of Kibor). (g) The committee shall meet at least monthly or as and when required.

On prime minister's directive: Govt constitutes task force for elimination of Riba

ISLAMABAD: On the directive of prime minister, the government has constituted a task force for the elimination of Riba. The government has decided to file a review petition in the Supreme Court of...

www.thenews.com.pk

 

[Ghazwa-e-Hind]

Lollipop.

Fake efforts to portray this puppet government in good light.

amreeki ghulam ab sood ka karobar khatam kareingay? joke of the century.

$130~ billion ka loan lene ka baad?

 

[AZ1]

dollar rate 127

 

[Jungibaaz]

Start by demolishing the central bank and defaulting on all non Sukuk type bonds and all outstanding T bills. Also turn away all loans, be they CPEC or IMF bailouts.

No? Didn’t think so…

 

[HRK]

The government has decided to file a review petition in the Supreme Court of Pakistan for elimination of Riba from the banking sector and all steps will be taken to implement this decision in true letter and spirit.

I don't know why Government is seeking review from the SCP IF government is ready to implement the SCP order in its true letter & spirit

Start by demolishing the central bank and defaulting on all non Sukuk type bonds and all outstanding T bills. Also turn away all loans, be they CPEC or IMF bailouts.

No? Didn’t think so…

Bhai you need to know that all the existing National & International agreements and obligations would be fulfilled till their expiry, SCP decision will only affect future policy.

As far as Domestic Banking Industry is concerned it will not face huge difficulties as major chunk of deposits in Banking Industry of Pakistan is already consist of either Current Accounts or Profit & Loss Sharing accounts, solution for existing Term deposits / fixed deposit could be negotiated.

Additionally I don't think functions of central banks will be affected by this decision, they would be required only to change the mode of functioning in some cases.

 

[muhammadhafeezmalik]

Start by demolishing the central bank and defaulting on all non Sukuk type bonds and all outstanding T bills. Also turn away all loans, be they CPEC or IMF bailouts.

No? Didn’t think so…

Sukuk is Islamic way of borrowing

I don't know why Government is seeking review from the SCP IF government is ready to implement the SCP order in its true letter & spirit

Bhai you need to know that all the existing National & International agreements and obligations would be fulfilled till their expiry, SCP decision will only affect future policy.

As far as Domestic Banking Industry is concerned it will not face huge difficulties as major chunk of deposits in Banking Industry of Pakistan is already consist of either Current Accounts or Profit & Loss Sharing accounts, solution for existing Term deposits / fixed deposit could be negotiated.

Additionally I don't think functions of central banks will be affected by this decision, they would be required only to change the mode of functioning in some cases.

These conventional banks are fast converting their conventional branches into sharia-compliant Islamic banking branches

 

[AZ1]

 

[Flash_Ninja]

How stupid are they to consult Islamic scholars in how to deal with public debt?

Why not just have interest capped and leave it at that? What is the need to waste taxpayer money on stupid activities like this which will never go anywhere anyway?

 

[Jango]

1- Pandering to the Islamic voter now?

2- They'll at most change the name of interest to other terms like the Islamic banks, with the underlying mechanisms remaining the same. Cosmetic changes to keep everyone happy.

 

[HRK]

1- Pandering to the Islamic voter now?

2- They'll at most change the name of interest to other terms like the Islamic banks, with the underlying mechanisms remaining the same. Cosmetic changes to keep everyone happy.

Actually a case was under review in SCP against the interest .... so SCP decided against the interest just few weeks back I think 4 or 6 weeks back. It was SS government few Banks like HBL, MCB & some other who decided to file the review, now SS government has also declared to go for review but with absurd logic that they will implement SCP decision in true letter and but therefore want a review ....

I mean this is the case then why want a review against the decision ... It does not make sense

 

[Jango]

I mean this is the case then why want a review against the decision ... It does not make sense

To pander to the Islamic vote bank.

A sizeable number of the PTI vote bank appreciates the stance he took in the UN against Islamophobia and such, and that is what N wants to counter. That's my hunch, not information.

 

[VCheng]

To pander to the Islamic vote bank.

And it never fails to work. Amazingly effective tool, for some reason.

 

[Jango]

And it never fails to work. Amazingly effective tool, for some reason.

True that.

Now I am no expert in Islamic banking, but from what little I understand, all it does is change the word interest to mean 'profit' from an investment. So instead of you getting money due to interest in your savings account, you can 'pretend' that the money is profit from an investment the bank did on your behalf. Underlying mechanism is the same.

Of course there are other forms of interests too, and those are similarly played with to make it seem kosher.

And this works for the majority of the population looking for Islamic banking.

 

[VCheng]

True that.

Now I am no expert in Islamic banking, but from what little I understand, all it does is change the word interest to mean 'profit' from an investment. So instead of you getting money due to interest in your savings account, you can 'pretend' that the money is profit from an investment the bank did on your behalf. Underlying mechanism is the same.

Of course there are other forms of interests too, and those are similarly played with to make it seem kosher.

And this works for the majority of the population looking for Islamic banking.

I try not to get into religious discussions, as a matter of routine, for good reason.

 

[HRK]

To pander to the Islamic vote bank.

Actually SCP decided against the interest and ordered to abolish interest based banking system, the confusion is IF SS government want to implement the decision I mean want to end the interest based system then why going for review against the decision which is ordering the same ???

Only logical explanation I could think is that this news is managed through Media Management Cell/ Strategic Media Cell and they sugar coated the news and published exactly the opposite what Government in reality is doing so that government could be saved from the backlash of common public.

So all in all those Islamist circles who fought their case against the interest based banking system in legal system of Pakistan over the period of 35-40 years are not brain dead, they have more grip on the subject and to the Islamic voters then the SS+PML-N could think.