Finance Minister Ishaq Dar on Wednesday reiterated his resolve to abolish interest-based banking in the country, as he contended that usury was strictly prohibited in the Shariah.
While addressing a seminar in Karachi, Ishaq Dar claimed that Islamic financial system aims to transact as per the Shariah principles.
He highlighted that it was easy to earn money under an interest-based system, however it was illicit.
He went on to say that increasing income and reducing expenditure is the only solution, lamenting that people have become accustomed to spending more than their income.
State Bank of Pakistan and National Bank had filed appeals against the court’s decision of implementing usurious system in the country. At this, Dar said that he had reservations on it too.
The minister said added that a country’s financial system is important for economic development and using banking services has become a necessity nowadays, however, he is still determined to end the interest-based system.
Moreover, the finance minister shared that the repayment date of $1 billion of the Sukuk bond is December 3 to 5. He assured that there will be no delay in the payments of Sukuk which can cause a negative impact to the reputation of the country in the international market.
In response to his earlier claim of bringing the value of the US dollar sub Rs200, Ishaq Dar backtracked, saying that a stable economy is the need of the hour.
Ishaq Dar stated that the US dollars are being smuggled to Afghanistan, which they are trying to stop.
Shrugging off the negative politics, he said that the economic instability is due to the political tension in the country.
He went on to reassure that Pakistan has faced severe economic problems than this. However, the country will not default and will be free of usury in the next five years.