Pakistan sets Jan. 1, 2028 deadline to eliminate ‘riba’ or interest from country

A Pakistani man counts Pakistan's rupees at his shop in Karachi on May 16, 2019. (AFP/File)
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Updated 21 October 2024
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Pakistan sets Jan. 1, 2028 deadline to eliminate ‘riba’ or interest from country

  • Pakistan’s Federal Shariat Court in 2022 ordered government to eliminate interest by 2027
  • The FSC ruled that Islam prohibits the use of interest in all its forms and manifestation 

ISLAMABAD: Pakistan’s parliament on Sunday passed a historic constitutional amendment bill that stipulates all forms of “riba” or interest must be eliminated before Jan. 1, 2028, with the move likely to promote Islamic banking in the country. 

Pakistan’s Federal Shariat Court (FSC) directed the government in April 2022 to eliminate interest by 2027, maintaining that Islam prohibited it in all its forms and manifestations. The FSC determines whether Pakistani laws comply with Islamic law or not. 

Pakistan’s ruling coalition government in the wee hours of Sunday passed the constitutional amendment bill by the required two-thirds majority in both houses of parliament. The amendment mostly contains reforms related to the country’s judiciary, which has stirred political debate in the country. The amendment changed the previous Article 38 (f) of Pakistan’s constitution, which called for the elimination of interest from the country “as early as possible.”

“In the Constitution, in Article 38, for paragraph (f), the following shall be substituted, namely: (f) eliminate riba completely before the first day of January, two thousand twenty-eight,” a copy of the 26th Constitutional Amendment Bill, 2024, states. 

Last year, Pakistan’s central bank set a target to increase the share of Islamic banking in the country to 35 percent by 2025. At present, the share of Islamic banking in the overall commercial banking system in the country is 20 percent.

Pakistan has six full-fledged Islamic banks offering a wide range of products and the annual growth rate of Islamic banks’ assets and deposits has been 25 percent and 22 percent respectively over the last five years, according to the central bank’s data.


Pakistan’s Punjab to hold Basant kite festival from Feb. 6-8 after 25-year ban

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Pakistan’s Punjab to hold Basant kite festival from Feb. 6-8 after 25-year ban

  • Province to start safety antenna installation campaign on all motorbikes from tomorrow
  • Basant ban began in the mid-2000s after fatal incidents involving metal-coated kite strings

ISLAMABAD: Pakistan’s most populous Punjab province will hold the iconic spring kite-flying Basant festival from Feb. 6-8 next year after the provincial government lifted its long-running 25-year ban earlier this month, a senior minister said on Wednesday.

The ban due to fatal kite-string accidents was lifted after the provincial administration passed the Punjab Kite Flying Ordinance 2025, marking a cautious comeback for a festival that once symbolized the arrival of spring in the region.

Basant, one of Punjab’s most celebrated cultural festivals, used to draw thousands to rooftops across Lahore and other cities. However, from 2005 onward, it was repeatedly banned after dozens of people were killed or injured by dangerous metal and chemically coated kite strings that could slash motorcyclists and pedestrians, many of them children.

Courts and provincial administrations upheld these prohibitions for years, making the revival of Basant one of Punjab’s most politically sensitive cultural decisions.

“[Chief Minister] Punjab Maryam Nawaz Sharif has approved the revival of our beloved Heritage Basant Festival on February 6th, 7th and 8th celebrated across Lahore after 25 years, a tradition rooted in history and admired worldwide,” Punjab Senior Minister Marriyum Aurangzeb said in a post on X.

“The Basant Ordinance 2025 will be fully enforced and implemented. Every kite string and seller registered, QR coded and monitored. Basant belongs to the people, its success is our collective responsibility.”

Aurangzeb added that a citywide campaign to install safety antennas on all motorbikes will begin tomorrow.

“Every motorbike in Lahore will have Antenna for safety before and during Basant Inshallah,” Aurangzeb added. “Safety is CM Punjab’s priority. Let every kite soar and every ride be safe together, we’ll make Lahore happy historic and secure!“

Under new regulations, the government has made it mandatory for anyone making or selling kites to register. Each kite must carry a QR code linking to the seller’s identity.

The rules also prohibit children under the age of 18 from flying kites, making their guardians responsible for any violations. Fines for minors are set at Rs 50,000 ($179) for a first offense and Rs 100,000 ($358) for a second offense. Kite flying will only be allowed with formal authorization.

In Punjab, kite flying will require permission from the deputy commissioners, and kites may only be purchased from registered vendors.

The ordinance introduces strict penalties for adults as well, including three to five years in prison and a fine of Rs 2 million ($7,160) for violations.

The government has said the new regulatory framework was intended to revive the Basant festival in a controlled and safe manner, balancing public enthusiasm for the celebration with longstanding concerns over fatal injuries caused by unsafe kite strings.

Officials say that the ordinance also aims to formalize the small but extensive economy surrounding Basant, which includes kite manufacturing, string production, dyes, paper supply, bamboo cutting, wholesalers and thousands of seasonal vendors.

For decades, this value chain has operated informally, with no licensing, safety regulations, or tax registration, generating minimal direct revenue for the provincial government.

By bringing manufacturers and sellers into a documented system through mandatory registration and QR-coded products, officials argue that the government can expand its tax base, ensure safer production standards and create more predictable business opportunities for cottage-industry workshops that rely on the Basant season for income.