ISLAMABAD: The Federal Shariat Court has given its judgment declaring Riba as Haram in any form of transaction.
The Full Bench of the Court comprising of Mr. Justice Muhammad Noor Meskanzai, Chief Justice, Mr. Justice Dr. Syed Muhammad Anwer and Mr. Justice Khadim Hussain M. Shaikh, in exercise of power under Article 203-D of the Constitution of Islamic Republic of Pakistan announced on Thursday its reserved judgment on Riba.
READ MORE: FSC reserves judgment in Riba free banking case
The copy of judgment approved for reporting is only available on the official website of the Federal Shariat Court.
The Court accepted the petitions and declared that prohibition of Riba is complete and absolute in all its forms and manifestations according to the Injunctions of Islam in accordance with the Holy Quran and Sunnah.
READ MORE: Riba case adjourned to April 04
Therefore, for all the detailed reasons deliberated in this judgment the charging of any amount in any manner over the principle amount of a loan or debt is Riba which is completely prohibited according to the Holy Quran and Sunnah of the Holy Prophet (SAW).
It is pertinent to mention that Riba case was remanded by Shariat Appellate bench Supreme Court of Pakistan in 2002.
READ MORE: Court hearing on Riba-free banking in Pakistan
The existing Bench of the Federal Shariat Court headed by the Chief Justice Mr. Justice Muhammad Noor Meskanzai took keen and unprecedented interest in this matter.
During the chairmanship of his lordship of the Bench thirty four hearings are conducted. Petitioners, their Counsels, Jurisconsults, Amicus Curiae, Economists, Experts, Scholars, Chartered Accountants, Attorney General and Advocate Generals advanced their arguments and the Court heard them with patience. They also gave suggestions for conversion of the existing banking system into Riba free Islamic Banking System.
READ MORE: PMRC, HBL Islamic Banking raise Rs1bn Sukuk
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)
“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.
