KARACHI: The full bench of Federal Shariat Court continued hearing of Riba case in the bench registry at Karachi on March 25 and 26, 2022.
The full bench comprises of Chief Justice Muhammad Noor Meskanzai, Honourable Justice Dr. Syed Muhammad Anwer and Honourable Justice Khadim Hussain M. Shakih.
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Ahmed Ali from Meezan Bank appeared before the Court and gave a detailed presentation on Islamic banking system and replacement of conventional banking with the Islamic Banking System.
Maulana Isamtullah as amicus curiae advanced his arguments on banking interest.
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Mufti Ihsan Waqar, Chairman, Shariah Advisory Board of National Bank of Pakistan filed his written submissions about Riba and Islamic Banking system. Learned Additional Advocate General, Sindh appeared before the court and submitted his opinion on Riba.
The matter was subsequently adjourned and will now be heard on 4th April 2022 at the principal seat of the Federal Shariat Court at Islamabad.
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The State Bank of Pakistan (SBP) defines Riba as:
The word “Riba” means excess, increase or addition, which correctly interpreted according to Shariah terminology, implies any excess compensation without due consideration (consideration does not include time value of money). This definition of Riba is derived from the Quran and is unanimously accepted by all Islamic scholars.
The meaning of Riba has been clarified in the following verses of Quran (Surah Al Baqarah 2:278-9)
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“O those who believe; fear Allah and give up what still remains of the Riba if you are believers. But if you do not do so, then be warned of war from Allah and His Messenger. If you repent even now, you have the right of the return of your principal; neither will you do wrong nor will you be wronged.”
“The origination of term interest dates back to 17th century with the emergence of banking system at global level. Interest means giving and/or taking of any excess amount in exchange of a loan or on debt. Hence, it carries the same meaning/value as that of Riba as defined in the previous question. Further, it is narrated that “the loan that draws interest is Riba”.
There is consensus among the Muslim scholars of all the fiqhs that interest is Riba in all its forms and manifestations.