SBP to promote interest-free banking

Federal Minister for Finance and Revenue Ishaq Dar announced on Wednesday that a special wing will be established in the State Bank of Pakistan (SBP) to promote interest-free banking. This wing will make recommendations, propose reforms and formulate a framework to swiftly transition from a conventional interest-based economy to an Islamic riba-free economy. The comments came in light of the Federal Shariat Court’s (FSC) decision that ruled that Pakistan should implement a riba-free banking system and transform the economy by the end of 2027. Addressing a seminar on interest-free economy jointly organised by the Federation of Pakistan Chamber of Commerce and Industries (FPCCI) and Centre for Islamic Economics, Jamia Darul Uloom Karachi, the finance minister stated that the two most important institutions to make the transformation possible are SBP and Securities & Exchange Commission of Pakistan (SECP). “These institutions regulate the banking system and corporate sector – the finance ministry will extend its full support to these institutions.