ISLAMABAD: The State Bank of Pakistan (SBP) on Saturday, challenged the verdict of the Federal Shariah Court (FSC) for the abolishment of interest in the Supreme Court (SC).
According to the details, the petition filed by the SBP requested that the appeal against the decision of the Shariah court be allowed for hearing and the extent of the points raised in the decision of the Shariah court be amended.
On April 28, the Federal Shariat Court had ordered the government to end the practice of interest on loans by 2027 in a 19-year-old case.
Advocate Salman Akram Raja on behalf of SBP filed an appeal in the Supreme Court. Four private banks are also a party in the same appeal against the decision of the Shariah Court. The Ministry of Finance, Ministry of Law, Chairman Banking Council and others were made parties in the appeal.
The appeal said that the Federal Shariah Court did not heed the orders of the Supreme Court remand order and ordered to amend the rules about savings certificates declaring them un-Islamic.
The appeal maintained that the SBP is the “premier custodian and regulator of the financial and monetary framework of the Islamic Republic of Pakistan” and “is deeply committed to ensuring compliance with the injunctions of Islam, in particular those pertaining to Riba(Interest).”
The central bank contested that the FSC had not taken due consideration of the remand order passed by the apex court while issuing a judgment on interest.
The SBP has prayed to the court that the SC orders amendments to the FSC April 28 order in the light of issues raised in the appeal.
The full bench of the FSC comprising Chief Justice Muhammad Noor Meskanzai, Justice Dr. Syed Muhammad Anwer, and Justice Khadim Hussain M. Shaikh, in exercise of power under Article 203-D of the Constitution of the Islamic Republic of Pakistan had announced the reserved FSC judgment on Riba.
The FSC had directed the federal government to expedite efforts to remove the word interest from all legislation, saying that any federal or provincial legislation carrying the word “interest” is against Shairat.
It had directed the government to start implementing the order from June 1 by declaring the money deposited in banks as “interest-free”.
