Islamisation of banks

With an overwhelmingly Muslim majority, there’s largely a distaste towards interest which is usually equated with exploitation, and often for good reason. Yet, the financial system unsurprisingly remains entrenched in it, irking the religious factions and parties who want to rid the country from the evils of riba. For years, the issue had been under legal scrutiny with the government of Pakistan as an appellant to the Federal Shariah Court’s decision (FSC). However, that changed last November when the government gave its backing to the FSC decision, with the finance minister promising to end the interest-based system by 2027. The news was quite well received among bankers who have long been trying to convert their conventional customers towards Islamic banking. Islamic banking is a somewhat polarising issue, with evangelists on one side and critics on the other. In between, you have reluctant customers who don’t really believe in any of the claims but still go for it just to be safe and do their part. Islamic banks have worked this to their advantage skilfully. After all, nothing sells more than religion.