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

[AZ1]

 

[ProudPak]

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.
View attachment 863456

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

Is this a joke...
Choor now preaching and rnforcing religion on the masses.

 

[Jungibaaz]

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.

I hear what you’re saying. And having has discussions on this subject on the forum in the past. IMO there’s a big weight of intellectual effort that’s currently missing and Muslims need to work on in order to transition. Islamic finance is totally niche, I know because I’ve pitched it to certain clients of mine. In order for us to transition from interest, we need a global and viable alternative.

I don’t see how CPEC loans, IMF bailouts, multilateral lending and funding from MDBs can be swapped out - they are all interest based and each of them is badly needed and cannot be turned down.

 

[Path-Finder]

I appreciate this, though everyone knows my views on n leak as a party.

 

[HRK]

I don’t see how CPEC loans, IMF bailouts, multilateral lending and funding from MDBs can be swapped out -

I understand as I myself worked in the industry, there are some shortcoming and some practical deficiencies but the solution to those would get evolve with the passage of time, we need to understand even Modern Financial and Banking system took centuries to reach to this stage, Islamic system is just few decades old.

Now your relevant concern about the existing International obligations such as IMF, CPEC contracts and other loans from different sources, all of these would be honoured, only issue would arise for the contracts and agreements for the needs in future. It is where the Islamic Bankers and Finance professionals need to work, some solutions are available some more are required to be developed.

I appreciate this, though everyone knows my views on n leak as a party.

Janab it is the decision of SCP in fact it was PML-N who always oppose the implementation last time it was NS who went for review of the decision Sharia court and since then it was in pending from last 20+ years, so IF they agree with the decision and want to implement then for what SS government is going to file the review.

 

[SQ8]

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.

Next up - remove all pine trees in the Margalla hills and replace them with Palm trees to make Islamabad more Islamic

 

[VCheng]

Next up - remove all pine trees in the Margalla hills and replace them with Palm trees to make Islamabad more Islamic

Or how about mandatory dupattas on the newscasters, and no bedroom scenes in dramas. Oh wait, haven't we tried that already before? Amazing that the same idiocy never fails to work, yet again.

 

[SQ8]

Or how about mandatory dupattas on the newscasters, and no bedroom scenes in dramas. Oh wait, haven't we tried that already before? Amazing that the same idiocy never fails to work, yet again.

It caters to a loud “majority” of sorts whose Islam revolves around this. Frankly, cannot say much from this side of the pond since the pandering is done by GOP to a smaller section of nutjobs here too.

Political pandering serves no one except only creates more nuts

 

[VCheng]

Political pandering serves no one except only creates more nuts

It serves the manipulators who thrive on such ignorance, no matter what religious garb is used for the gullible. Hence the enduring popularity of such techniques. Add in a few racial overtones, and the mix is quite potent.

 

[maithil]

When every other trick fails , religion is the answer.

 

[muhammadhafeezmalik]

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?

These Islamic Scholars are not just common sermon preachers, they have Ph.Ds too, they have wrote several books on the subject.

 

[muhammadhafeezmalik]

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

This is not review petition to reverse the decision but this petition is for more guidance, government want more detail to implement this system.

https://twitter.com/x/status/1519582531062009856

 

[El Sidd]

This is not review petition to reverse the decision but this petition is for more guidance, government want more detail to implement this system.

https://twitter.com/x/status/1519582531062009856

I think these pro Riba forces are going to bring down the government sooner rather than later.

 

[HRK]

This is not review petition to reverse the decision but this petition is for more guidance, government want more detail to implement this system.

https://twitter.com/x/status/1519582531062009856

Bhai this just a delaying tactic ....

Plz let me state it clearly I am not saying this just because I oppose PML-N politically .... now let me tell you how is it a delaying tactic

IF Government is seeking review for the "Process, Steps & Time frame" then plz recall it is the Responsibility of Executive to implement the orders of the court in its true sprite and for this Government should take SBP and other stakeholders in confidence.

Now once the court has decided as per the constitution of Pakistan It has nothing more to do with FSC or SCP, they only had to decide about the legality of Interest as per the constitution of Pakistan which they have done, they have already fulfilled their responsibility and now they don't have the mandate

- To define the Process (NOTE: This is responsibility OF SBP and Commercial Banks as per existing laws)

- To decide about the Steps Executive (read: Government of Pakistan) has to take (NOTE: Again this is the responsibility of SBP, Commercial Banks of Pakistan)

- Or to give the specific time frame (Note: This is Common responsibility of SBP, Commercial Banks and Government)

It is the responsibility of SBP and commercial Banks to decide about the Process, Steps and Possible Timeframe which may be required to complete this task, additionally IF there is a need for the amendments in existing Laws or the formation of new Laws then it is the responsibility of Government to take care the legality of the process, but rather doing the simple things government is shifting its responsibility towards the Judiciary which eventually delay the process.

I hope you too will see this issue by raising yourself above the political liking or dislike. It is neither political nor religious issue after the Judgment but the issue of governance.

 

[Flash_Ninja]

These Islamic Scholars are not just common sermon preachers, they have Ph.Ds too, they have wrote several books on the subject.

PHDs in what? is it finance or anything related to the economy?