Shariat court asks govt to implement Riba-free system by 2027

[313ghazi]

You can't have two parallel economic systems in one country, just like you can't have two parallel judicial systems in one country.
Why do we always need to pay lip service to Islam instead of doing what we need to do to fix our systems and align with the world economy.

This is the exact interim solution i think we need. Setup a parallel currency/economic system, roll it out in phases, see how it works, iron out the kinks, eventually if it works, organically business within the country will move to it. Then you can limit the exposure to interest based lending to just international level.

Remeber having to borrow money is not something we have to do as a country, it's something we do because we're poorly managed and don't have enough money to buy/build what we want.

 

[EternalMortal]

This is the exact interim solution i think we need. Setup a parallel currency/economic system, roll it out in phases, see how it works, iron out the kinks, eventually if it works, organically business within the country will move to it. Then you can limit the exposure to interest based lending to just international level.

Remeber having to borrow money is not something we have to do as a country, it's something we do because we're poorly managed and don't have enough money to buy/build what we want.

We actually already have a parallel system. We were the 1st country with islamic banking, I believe. We don't need to reinvent the wheel.

What should be done is convert all interest-based loans into shariah-compliant financial instruments. Gov & banks have 5 yrs to do this. Any interest-based loan that is not converted by 2027 should be declared null & void or at the very least only principle should be repaid.

 

[Thinker3]

Federal shariat Court declared interest haram in 1991, after that Nawaz Sharif went to Supreme court to challenge the decision of Shariat Court and thus Shariat Court decision was stopped.

 

[Maula Jatt]

how are you going to do it without hurting our economy?
how are they going to implement it
than its a bad decision

 

[EternalMortal]

How is time value of money accounted for in the Islamic banking system?

Islamic banking and finance - Wikipedia

en.wikipedia.org

 

[Basel]

How is time value of money accounted for in the Islamic banking system?

Islamic Banks are not lenders, they don't provide loans, they do financing in business, they do Musharkah, Mudarbah, Istisna, Murabaha, Tijarah, Ijarah, Salam, Sukkuk etc.

 

[EternalMortal]

how are you going to do it without hurting our economy?
how are they going to implement it
than its a bad decision

How will it hurt economy? I want concrete examples.

 

[Princeps Senatus]

suicide for economy

 

[Basel]

how are you going to do it without hurting our economy?
how are they going to implement it
than its a bad decision

First one need to study AAOIFI Sharia Standards to know how Islamic economy can work.

 

[EternalMortal]

People acting as if gov doesn't already have a framework for implementing such a system.

Regulations

State Bank of Pakistan

www.sbp.org.pk

FAQs

State Bank of Pakistan

www.sbp.org.pk

 

[jamahir]

Alhumdulliah, very good decision. But question is how will it be implemented within 5 years?

By implementing progressive and simple socio-economic systems such as mine which I describe in this thread. The socio-economic system is a stage between Capitalist society and a non-interest-based progressive society such that there is a money system but it is an evolved money system and the entire system is structured so that the economic classes in Capitalism ( rich, middle, poor ) are abolished and that each citizen has potentially equal access to all the goods and services in the society.

 

[OldenWisdom...قول بزرگ]

This is the exact interim solution i think we need. Setup a parallel currency/economic system, roll it out in phases, see how it works, iron out the kinks, eventually if it works, organically business within the country will move to it. Then you can limit the exposure to interest based lending to just international level.

Remeber having to borrow money is not something we have to do as a country, it's something we do because we're poorly managed and don't have enough money to buy/build what we want.

A dollar peg means, a perpetual drain on economy. Dollar being the world reserve currency, a fiat without gold backing as it initially did... was interchangeable with gold at a certain amount. It was this leverage as a global reserve currency that U.S. cashed in and issued way more greenbacks than the gold reserves in hand. In 1973 Nixon temporarily eliminated that peg first momentarily, it later became permanent.
By OPEC agreeing to sell crude in dollar mandated dollar's reserve status and started the era of petro dollar and endless inflation. There are no winners here... U.S. must keep all glued to the current paradigm or the house of cards shatters.
Having a currency pegged against precious metals... theoretically makes it easier to trade with... because the seller knows it is interchangeable to a valuable commodity. The unknown remains the same if the states again prints more than it's reserves in hand.
It stops the need to borrow or get dollars in open market to purchase goods and services, especially the crude. Overtime incentives alternatives or in house production for needed products.
Since you do not have to purchase someone else's endless inflation. You do not need an interest based system to support your purchase and/or maintain a certain value against the reserve.
Pakistan therefore needs to come out of endless production model of higher exports to get the greenbacks it needs to purchase it's own needs. Trade agreements need primarily be regional and bilateral...

There is way more that I have written over the years on this forum on the topic... so this is the short, disjointed rejoinder... hope it makes sense.

 

[JackTheRipper]

Mullah are cancer for this country,
It does not matter if Mullah is in Mosque, Madarsahs, TV, Govt or even in Judiciary...

Getting loan from IMF or World Bank are interest free? will they give without interest?

Who will give you loan without interest?
who will give you money on base of profit & loss a/c, its not risky? if bank eat money by saying they have loss on profit & loss a/c.

 

[OldenWisdom...قول بزرگ]

Mullah are cancer for this country,
It does not matter if Mullah is in Mosque, Madarsahs, TV, Govt or even in Judiciary...

Getting loan from IMF or World Bank are interest free? will they give without interest?

Who will give you loan without interest?
who will give you money on base of profit & loss a/c, its not risky? if bank eat money by saying they have loss on profit & loss a/c.

Listen ripoff...
Why do you need IMF?
What is balance of payments?
Why do you even need dollar reserves?

All these things are connected to one thing ... world trade post Bretton woods.
Countries like Pakistan and Sri Lanka are at permanent loss. They'll never, Note Never, be able to keep up with the balance of payments.
If U.S. wanted to make Pakistan another South Korea or China... it could and still can... How?
By incentivizing imports from Pakistan of certain products, services or commodities. If it is electronic, Pakistan will be selling TV monitors, consoles, fixtures and accessories by the ship load and sending it where, U.S.!

But it doesn't...
however Pakistan still pegged to dollar necessitates purchase of dollar from open markets, it devalues home currency, reducing further value of goods and services produced in the country. An endless cycle of production that never seizes, needed to build enough reserves to furnish a limited amount of imports, especially oil.

Loans on interest are issued to stimulate spending and production... create needs... consider Japan that paid the borrower to get a loan(called negative interest rates)... Jumpstart spending, borrowing and create more inflation. It didn't work...

 

[JackTheRipper]

Listen ripoff...
Why do you need IMF?
What is balance of payments?
Why do you even need dollar reserves?

All these things are connected to one thing ... world trade post Bretton woods.
Countries like Pakistan and Sri Lanka are at permanent loss. They'll never, Note Never, be able to keep up with the balance of payments.
If U.S. wanted to make Pakistan another South Korea or China... it could and still can... How?
By incentivizing imports from Pakistan of certain products, services or commodities. If it is electronic, Pakistan will be selling TV monitors, consoles, fixtures and accessories by the ship load and sending it where, U.S.!

But it doesn't...
however Pakistan still pegged to dollar necessitates purchase of dollar from open markets, it devalues home currency, reducing further value of goods and services produced in the country. An endless cycle of production that never seizes, needed to build enough reserves to furnish a limited amount of imports, especially oil.

Loans on interest are issued to stimulate spending and production... create needs... consider Japan that paid the borrower to get a loan(called negative interest rates)... Jumpstart spending, borrowing and create more inflation. It didn't work...

Listen Dumbass !

Donkey King had claimed he will not go to IMF or World Bank, Then he went.

No One will give you loan without their benefit, "Interest", Same rule applied on Microfinance Banks, IMF, World Bank and everywhere.