Govt moves to SC, seeks to withdraw petition challenging FSC’s Riba verdict

By Muhammad JuniadPublished On 05 Jan 2023

ISLAMABAD: The Federal government on Saturday approached Supreme Court, seeking to withdraw its petition challenging the Federal Shariat Court’s (FSC) decision on the interest-free banking system given some four months ago.

On 28th April this year, the Federal Shariat Court (FSC) had announced a verdict in a long-pending case on Riba (interest), declaring the prevailing interest-based banking system as against the Sharia and directed the government to facilitate all loans under an interest-free system. The FSC 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.

After the change of government, the Shehbaz Sharif-led government filed appeal in June under Article 203D of the Constitution, requesting Supreme Court to modify the Federal Shariat Court (FSC) April 28 judgment that declared that Riba was prohibited according to the injunctions of Islam and so it should be eliminated from the country in five years.

However, two days back, Finance Minister Ishaq Dar said State Bank of Pakistan (SBP) and National Bank of Pakistan (NBP) would withdraw their petitions from the Supreme Court of Pakistan against the judgment of Federal Shariat Court.

Acting on the directives of the federal government, State Bank’s lawyer Salman Akram Raja on Saturday filed a miscellaneous application in the Supreme Court, seeking to withdraw appeal challenging the FSC verdict.