ISLAMABAD: Finance minister Ishaq Dar has reiterated the government’s resolve to implement interest-free banking in the country, reported the Associated Press of Pakistan (APP) news agency on Saturday, to comply with a ruling of the Federal Shariat Court (FSC).
The FSC, which determines the extent of compliance of Pakistani legal system with Islamic law, directed the government last April to eliminate “riba” – or usuary – from the country’s banking system in five years.
The share of Islamic banking in the overall commercial banking system of the country is already estimated to be around 21 percent. Pakistan also has six full-fledged Islamic banks offering a wide range of products to customers.
The APP said Dar chaired the first meeting of a steering committee on the implementation of the FSC verdict wherein he reaffirmed the government’s intention to promote Islamic financing.
“He stressed the need for all stakeholders to work with commitment, sincerity and understanding to overcome all hurdles and make the interest-free system feasible and stronger that all citizens would aspire for,” said the report.
“The minister underlined the need for including Islamic law experts in relevant committees and also sought the guidance of Islamic scholars for the launch of additional Sukuk (Islamic bonds),” it added.
Last November, Dar announced the government’s decision to set up a dedicated wing at the State Bank of Pakistan to oversee the transformation of the country’s economic system.
The meeting was also briefed by the central bank governor on the roadmap for the implementation of the FSC judgement on the issue.