Islamic Banking in Pakistan: Federal Govt has decided to withdraw its two applications in the apex court to dismiss Federal Shria Court earlier this year.
Federal Sharia Court gave a verdict regarding the imposition of Islamic banking in the country.
The FSC gave a verdict I April 2022 wherein it instructed Federal and all provincial Governments to make arrangements for Islamic banking and make it happen in the next 5 years.
It means Federal Shria Court gave time to the Government up to 2027 to impose Islamic Bank in the country.
Against this Federal sharia Court decision, the State Bank of Pakistan and the National Bank of Pakistan put an appeal in the Supreme Court of Pakistan to dismiss this decision. Both the banks gave an opinion the implementation of Islamic banking in a short period of time is not possible for the Government.
But eventually, the federal Govt has decided to both of these applications in the apex court and decided to accept the sharia court and is ready to implement this decision as it is.
Initially, an application was filed in Federal Shria Court to implement Islamic banking in Pakistan that must be free of interest. That time Federal sharia Court gave a verdict to implement Islamic banking in Pakistan but at that time Government of N league went to the Supreme Court to dismiss the sharia Court decision.
At least after 32 years, the decision came in favor of Islamic banking imposition in the country.
There are now 5 full fledge Islamic banks in Pakistan including Meezan Bank, Bank Islamic and Dubai Islamic Bank but all the traditional banks have their Islamic branches too. Now all the traction all Banks will have to convert their branches into Islamic ones.
Although the current Islamic banks still create doubts in the minds of their customers regarding their products and whether they follow true Islamic principles or not.
But with the passage of time, all the issues may be resolved regarding Islamic banking as Govt is taking serious steps about it.