International Institute of Islamic Thought and Islamic Research Institute, 2002 - Business & Economics - 144 pages
Elimination of Riba has been a major issue in Pakistan occupying the attention of policy makers, bankers, legal experts and Islamic scholars for the last several decades. Apart from the efforts undertaken by the government to introduce non-interest modes of financing, the debate received fresh impetus after the judgment of the Federal Shariat Court in 1991 which was further reinforced by the judgement of the Supreme Court in December 1999. The present work is the outcome of the submissions that the author made before the Supreme Court when he was invited by the Court as amicus curiae.Having expounded the basic principles of Islamic finance, the book traces the main challenges in various spheres of financial transactions and argues that a smooth transition to the new system is feasible. However, it cautions that in view of the pervasiveness of Riba in modern economies and in numerous laws, merely striking down certain impugned provisions of law may not be the most desirable course. Rather, the government will have to expend a comprehensive effort through a legislative initiative to provide for an alternative system. The book also reviews the constitutional provisions relating to government's finances and identifies areas of concern that have implications for efficient fiscal management as well as for effective elimination of Riba.
