ISLAMABAD: The Federal Shariat Court has said that interest taken by banks on any type of loan falls within the category of Riba that is prohibited in Islam.
The full bench of the top Islamic court headed by Chief Justice Muhammad Noor Meskanzai, and comprising Justice Dr. Syed Muhammad Anwar and Mr. Justice Khadim Hussain M. Shaikh reserved the judgment against Riba case on April 12.
The long-pending Riba case was remanded by the Shariat Appellate Bench Supreme Court of Pakistan in 2002.
Justice Syed Muhammad Anwar announced the verdict, stating introducing interest-free banking system in Pakistan is possible as it is being practiced by some institutions in the country.
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The Shariah court has given the federal government five years to develop a financial system in line with Islamic teachings in five years, adding that the Riba-based financial system must be abolished.
Jamat-e-Islami chief Sirajul Haq hailed the Federal Shariah Court’s ruling historic, saying they will put pressure on the government to implement the verdict as soon as possible.
