According to Irfan Iqbal Sheikh, president of the FPCCI, the business community supports the transformation of Pakistan’s economy and banking system to a Riba-free system in accordance with the decision of the Federal Shariat Court (FSC), which requires the elimination of Riba (interest) from the economy and banking system over a five-year period. The FSC has set 2027 as the deadline for a complete ban on interest, citing it as sufficient time to implement the decision. According to the verdict, the government must make the necessary regulatory changes to facilitate the transition to an interest-free financial system.
To avoid the ills and risks associated with an interest-based system, the FPCCI Chief has called for the transformation of Pakistan’s economy and financial system into an equitable, asset-based, risk-sharing, and interest-free economy.
Mr. Irfan Iqbal Sheikh maintained that Islamic banking has been successfully and prudently expanding its operations in Pakistan, and that the market share of Islamic banking deposits and assets in the total banking industry was 19.4pc and 18.6pc, respectively, for the year 2021. Furthermore, net financing by Islamic banking institutions increased by 38.1 percent in 2021, a very strong increase in financing by any standard.
