Pakistan govt to implement 'interest-free' banking system by 2027

Category : International Published on: November 14 2022

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Pakistan's Finance Minister Ishaq Dar has announced that the country would move towards an 'interest-free' banking system under the Islamic law by 2027.
The announcement came with Finance Minister Dar conveying the government's intention of withdrawing its appeals against the Federal Shariat Court's April decision of eliminating interest from the country in five years.
According to the Federal Shariat Court (FSC), the interest-based banking system prevalent in Pakistan is against Sharia law because interest in any form is considered wrong in Islam.
Dar also announced that the Asian Infrastructure Investment Bank (AIIB) approved $500 million loan. Pakistan has secured the loan at one of the highest interest rate of 4.9% by any multilateral creditor.