Pakistan was created in the name of Islam 75 years ago but unfortunately Islamic economic system has not been implemented in the country.
The founder of the nation, Quaid-e-Azam Muhammad Ali Jinnah, told in his speech at the inauguration of the State Bank of Pakistan (SBP) on 1st July 1948:
“The adoption of Western economic theory and practice will not help us in achieving our goal of creating a happy and contended people. We must work our destiny in our own way and present to the world an economic system based on true Islamic concept of equality of manhood and social justice. We will thereby be fulfilling our mission as Muslims and giving to humanity the message of peace which alone can save it and secure the welfare, happiness and prosperity of mankind”.
Here the question arises that who is responsible for it? The answer is that the whole nation, including the government, concerned authorities, individuals, institutions and business community, is responsible for it. The whole nation did not fulfill the dream of the founder of Pakistan i.e. implementation of Islamic economic system in the country based upon the equality of manhood and social justice.
It is the fact that in the history of 75 years of Pakistan, we see that the strivings have been performed for the elimination of Riba from the economy but still we see the factor of interest in the economy. There is no doubt that our Shariah scholars and financial and economic experts have done the great job with respect to formulation of the framework and implementation of Islamic economic system and it is worth to be noted that these strivings have been done under the support of the government and concerned authorities but beside these strivings, we also see in our history that the government and concerned authorities have also tried to stop the process of implementation of Islamic economic system. First time, this type of intention was seen clearly shown when the government appealed in the Supreme Court of Pakistan against the decision of Federal Shariat Court (FSC) in 1991. In this decision, FSC declared the practices of banks and financial institutions as non Shariah compliant. In 1999, the Shariat Appellate Bench (SAB) of Supreme Court of Pakistan given the historical decision and rejected the appeal of the government. SAB ordered to abolish all interest based laws in the country.
In 1991, the Federal Shariat Court (FSC) declared the practices of banks and financial institutions, which they were being executed since 1985, as non Shariah compliant. The government did appeal against the decision of FSC in Supreme Court of Pakistan. In 1999, the Shariat Appellate Bench (SAB) of Supreme Court of Pakistan given the historical decision and rejected the appeal of the government. SAB ordered to abolish all interest based laws in the country. SAB ordered to abolish all interest based laws in the country. SAB ordered to establish special commission and task forces to formulate the proper policy for the elimination of Riba from the economy. The special commission and task forces were established and the work was begun in this respect. The positive developments were seen and the decision to establish Islamic banks was done in 2021. But the destiny of implementation of Islamic economic system was no so easy. There was a major setback in this regard when United Bank Limited submitted the petition against the decision of SAB in 2002 and amazingly the Supreme Court’s SAB set aside all the previous judgments, including its own decision of 1999. SAB asked FSC to re-hear the case. For a long time since 2002, the case was still pending and there was no attention in this respect. After the long time, FSC again given the verdict in April 2022 that the interest based economic system in the country is against the commandments of Islam and ordered to formulate the proper policy for the abolition of interest till 2027. Unfortunately, despite formulating efficient policy according to the verdict of FSC; SBP submitted the petition against the decision of FSC in Supreme Court of Pakistan and requested to review the decision and at present, the case is pending at Supreme Court of Pakistan.
After explaining the above mentioned scenario with respect to intention of the government and concerned authorities, we look at the society in which individuals, institutions and business community execute transactions. It is pity to say that the whole nation is involved in the interest based transactions and doing war with Allah and His Messenger (SAW). Now, the Islamic banking and finance industry exist in Pakistan and growing rapidly but still, the individuals, institutions and business community open bank accounts in conventional banks and still obtain interest based financing from conventional banking and finance institutions. In this scenario, can we blame only government and concerned authorities for the non-implementation of Islamic economic system? The answer is absolutely not. All those individuals, institutions and people from business community equally responsible and convicted in this situation.
There is no doubt that the society has very much power to implement anything. In case of any social distress, the individuals, institutions and business community start agitation but amazingly, these segments agree upon the war with Allah and His Messenger (SAW) and no activity is seen from the segments of the society except some movements. If there would be agitation against the interest based economic system, the government and concerned authorities would be compelled to take serious actions towards the implementation of Islamic economic system. But the reality is that the whole nation does not want Islamic economic system. If the nation wants Islamic economic system, the individuals, institutions and business community must boycott the conventional financial institutions and interest based transactions and execute transactions with Islamic financial institutions. If the whole nation would do boycott of interest based economic system, there would be no power that can stop the effective and efficient implementation of Islamic economic system in the country.
At the moment of the completion of 75 years of independence, the whole nation must collectively think upon this serious issue and decide to abolish interest based economic system from the country. To abolish the system, the every segment of the society must participate and show the will in this regard. Now, the whole nation must decide that the war with Allah and His Messenger (SAW) must be stopped as the whole nation may prosper.
The Author is a Team Leader – Training & Development Unit, Shariah Compliance Department, National Bank of Pakistan