FSC seeks replies from SBP in Riba case
The Federal Shariat Court (FSC) has sent a questionnaire to the State Bank of Pakistan (SBP) asking the central bank various queries with regard to the Islamic model of banking being practiced in other countries as well as the government's steps to implement a Riba-free financial system.
A three-judge bench presided over by FSC Chief Justice Muhammad Noor Meskanzai resumed hearing of a case that can be traced back to the 1992 when the FSC had declared ' Riba' repugnant to the injunctions of Islam.
In the questionnaire, the FSC asked the SBP as to how many countries practice the Islamic financial system; how these systems are being operated generally and which example is best suited for Pakistan.
The court also asked how many international banks and financial systems are using Islamic banking or Islamic financing models in different forms to provide Riba-free service to their customers.
"Is there any example in the world that the international financial transactions of a sovereign state with the international financial institution are somehow linked with Islamic banking transaction?"
"What steps have so far been taken by the SBP and government of Pakistan through Ministry of Finance to promote Islamic banking in Pakistan and what is the future framework/timeline for its promotion?"
The court asked what was the response of international financial institutions the World Bank, the IMF and the Asian Development Bank etc - to the Islamic banking purely from economic and banking points of view and if they provide financing on Islamic principles.
"What is the latest status of compliance of the Commission for Transformation of Financial System and the two taskforces created in the Ministry of Finance and Ministry of Law in this regard?" The court also asked as what is the opinion of the SBP Shariat Board about "indexation" vis-a-vis banking loans and banking deposits and Riba-ul-fadl vis-a -vis banking transactions.