Ishaq Dar announces to withdraw appeals filed by SBP & NBP against Federal Shariat Court’s verdict
ISLAMABAD, Nov 09, (SABAH): Minister for Finance and Revenue Senator Mohammad Ishaq Dar on Wednesday announced that the government will be withdrawing the State Bank of Pakistan (SBP) and National Bank’s (NBP) appeals against the Federal Shariat Court (FSC) direction to the government for complete transformation of the banking system into Shariah-compliant banking by December 2027.
The FSC verdict in the long delayed case was announced in April. The court had ruled that the federal government and provincial governments must amend relevant laws and issued directives that the country’s banking system should be free of interest by December 2027.
Commercial banks and the central bank had subsequently filed an appeal before the Supreme Court of Pakistan (SCP) challenging the FSC verdict.
In his press conference on Wednesday on the matter, Ishaq Dar said: “With the permission of the Prime Minister Mian Muhammad Shehbaz Sharif and Pakistan Democratic Movement (PDM) government and consultation with the SBP governor, I’m announcing on behalf of the federal government that the SBP and NBP will withdraw their appeals from the SC and our government will fully try to as quickly as possible implement an Islamic system in Pakistan.”
He said that in near past the Federal Shariat Court had given verdict to transform the economic system of Pakistan should be transformed and in five years tenure it should be purged from interest based system and it is also the order of the Quran and Sunnah.
Ishaq Dar said there was lots of detailed discussion on the matter over the last few weeks and a future roadmap was discussed with the SBP governor as well. He said that from 2013 to 2018, the Islamic banking system was promoted in the country and a special committee was also set up in which the senior ulema like Maulana Taqi Usmani were included, adding that a lot of work was done by this committee and a lot of movement was made towards imposition of Islamic banking system.
He said that SBP and NBP had filed appeals in Supreme Court of Pakistan against the order of Federal Shariat Court and it was in the knowledge of the government, adding that as it is the order of the Shariat and Quran, adding that for us priority and standard of making decisions is Quran and Sunnah. Ishaq Dar said that in the light of the Quran and Sunnah and with the permission of PM Shehbaz Sharif and consultation of Governor SBP, I am announcing that SBP and NBP will withdraw their appeals from Supreme Court. Ishaq Dar said that the government will make all out efforts for imposition of Islamic banking system in the country with fast pace, adding that the effort will be made to implement the FSC verdict with fast pace as compared to past, adding that may Almighty Allah guide and help us in implementation of this decision and move forward interest-free system in Pakistan with fast pace.
The finance minister acknowledged that there will be many challenges in implementing the FSC verdict and the entire banking system and its practices could not be immediately shifted to a new system but nonetheless, the government in the light of the Quran and Shariah teachings had decided to withdraw the two appeals filed in SC against the FSC decision in the next few days and pivot Pakistan to an “interest-free” banking system within the stipulated time given by the FSC.
Ishaq Dar also congratulated the whole Pakistan nation and cricket team to reach final of the T-20 world cup while beating New Zealand. Ishaq Dar also prayed for the success of Pakistani cricket team in the final of T-20 World Cup.
It is worth mentioning here that the first petition for the abolition of the interest-based banking system in the country was filed in the FSC on June 30, 1990.
The then chief justice of the FSC, Dr. Tanzeelur Rehman, had constituted a three-member bench that delivered judgment in the case on November 14, 1991, and sought its implementation by April 30, 1992. The then PML-N government had challenged the decision in the apex court.
Years later on December 23, 1999, the SC upheld the decision of the FSC and directed authorities to ensure its implementation by June 30, 2000.
Subsequently, a review appeal was filed in 2002 with the top court, and on June 24, 2002, the decision of the Shariah Court was suspended and the case was referred back to the FSC for interpretation of Riba.
The case against the interest rate system had been pending in the Shariat Court for the last 19 years. Around nine chief justices of the FSC have completed their terms since then, but the case remained undecided until its verdict was announced in April.