Future of Interest Based Banking System in Pakistan After Islamic Banking Implementation

Federal Govt has decided to withdraw its two petitions against Federal Shria Court April 2022 verdict regarding the implementation of Islamic banking in Pakistan.

Federal Govt filed two petitions by SBP and NBP in the apex court to dismiss the Federal Sharia Court verdict about Islamic banking.

But Ishaq Dar the finance minister announced that with the order of Prime minor Pakistan and after counseling of State Bank Governor, Govt decides to withdraw its two petitions against Islamic banking which were filed in the apex court by NBP and SBP.

Now Federal Govt is ready to implement Islamic banking in Pakistan as per the verdict of the Federal Sharia Court.

FSC gave 5 years to Federal and Provincial Governments to implement the Islamic banking system in Pakistan.

Now all the banks will transform their conventional branches into Islamic branches.

All the banks will also introduce their Islamic products like saving Accounts and certificates which will replace existing interest based saving accounts and certificates.

As per the rules, the investor’s money I  Islamic banking is invested in halal projects wherefore halal profit is shared with the investors.

Recently two premium Prize bonds are there in the market and providing not only prizes but profit as well which is credited on a bi-annual basis into investors’ accounts.

Govt will also transform the prize bonds into Islamic ones as the Recent profit given on Prize bonds is also interest-based.

So with the passage of time, all Banks including the National saving center will introduce new Islamic products i.e Saving Accounts and certificates wherein investors can get halal profit.

So it’s obvious that the current banking system in Pakistan is going to be transformed in the next 5 years and it will be replaced with the Islamic banking system.

Although many people have doubts regarding the current methodology of Islamic banks and their products and think both conventional banking and Islamic banking are the same they are not.

As Islamic banking is governed by the sharia board which consists of Islamic scholars or Mufti who judge all the processes to ensure it complies with Islamic teachings.

Also Read: Federal Govt Big Decision About Islamic Banking in Pakistan

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