.أَعُوْذُ بِاللّٰهِ مِنَ الشَّيْطٰانِ الرَّجِيْمِ – بِسْمِ ٱللَّٰهِ ٱلرَّحْمَٰنِ ٱلرَّحِيم
(279)..وَإِن تُبْتُمْ فَلَكُمْ رُءُوسُ أَمْوَالِكُمْ لَا تَظْلِمُونَ وَلَا تُظْلَمُونَ
… if you desist (from taking Riba/ usury), repent, then you shall have your capital; neither shall you make (the debtor) suffer loss ( by asking for more) nor shall you be made to suffer loss (through decrease in value of your capital)”(Quran 2;279)
Introduction
To resolve any issue, first the prevalent environments have to be well understood, then the Quranic injunctions should be applied intelligently. Fiat money is a recent phenomenon. Fiat is government-issued currency that is not backed by a physical commodity, such as gold or silver, but rather by the government that issued it. The value of fiat money is derived from the relationship between supply and demand and the stability of the issuing government, rather than the worth of a commodity backing it. Most modern paper currencies are fiat currencies, including the U.S. dollar, the euro, and other major global currencies. One danger of fiat money is that governments can print too much of it, resulting in hyperinflation.(1)
The Qur’an provides eternal guidance for every matter(2), it requires full application of the Qur’anic rulings on a given issue – partial, incomplete application of the rulings is just mockery.
Presenting incomplete Qur’anic injunctions is woefully misleading, deliberately omitting information is tantamount to lying، a great sin. There is a famous saying that a half truth is often a full lie. Allah says:
O People of the Book! Why do you confuse the truth with falsehood and conceal the truth while you know [it]? (3:71)
“So do you believe in part of the Scripture and disbelieve in part? Then what is the recompense for those who do that among you except disgrace in worldly life; and on the Day of Resurrection they will be sent back to the severest of punishment. And Allah is not unaware of what you do. (Qur’an 2:85).
Let’s take an example:
O people who have believed (یٰۤاَیُّہَاالَّذِیۡنَ اٰمَنُوۡا) do not approach the prayer (لَاتَقۡرَبُواالصَّلٰوۃَ) while you are drunk (وَاَنۡتُمۡ سُکٰرٰی) [Quran:4:43](3)
In this verse IF the last part (وَاَنۡتُمۡ سُکٰرٰی) “while you are drunk” is not presented, it will read:
“O people who have believed (یٰۤاَیُّہَاالَّذِیۡنَ اٰمَنُوۡا) do not approach the prayer (لَاتَقۡرَبُواالصَّلٰوۃَ).”
This way the whole meanings have changed, Salah (prayer), an important pillar of Islam has been negated through hiding, ignoring, twisting part of verse. If the whole truth is not told, then people can be as if you were lying to them out rightly.
Though not exactly but somewhat similar situation was noticed, hence: “Scam of the Century is Unveiled”.
Purpose
The purpose of this article is to examine partial compliance of the commands of Allah on Riba (usury), and suggest possible options for full implementation of divine commandments on this subject.
Full implementation of the commands of Allah for Riba free economy is the the legal, ethical and religious responsibility of the Federal Shariat Court (FSC), State Bank of Pakistan (SBP)(4) and related institutions.
FSC Judgment on Islamic Banking
The Prohibition of Riba in the Qur’an is beyond any doubt. FSC examined the Riba law in the light of the Qur’an and the Sunnah, it ruled in 1999 on the abolition of Riba in the banking system. An appeal was made and on April 28, 2022, an order was issued to declare Riba as haram and to eliminate it through Islamic banking – this has been well appreciated by everyone.(5)
The Problem
Most people may not be aware that, while banning Riba, in fulfillment of the command of Allah, the judgment ignored the other half of the same verse of the Quran (2:279). It is surprising that the scholars, intellectuals and legal experts who have been following this case with enthusiasm for seventy-five years have ignored half the verse of Quran (2:279). In any case, human beings are prone to mistakes and Allah is kind to grant pardon and forgiveness on repentance (tawba) and correction of their error(6). However insisting on error is disastrous:
“.. because they disliked what Allah revealed, so He rendered their deeds worthless.”(Qur’an 47:9)(7)
Quran on Prohibition of Riba & Obedient Servants
Following two frequently quoted Quranic verses tell the whole truth about prohibition of Riba (usury) and its implication for the obedient servants, though there are also other verses on Riba(8). Both aspects are equally important and both have to be implemented in letter and spirit, which is the objective of this article:
(278)يَاأَيُّهَاالَّذِينَ آمَنُوااتَّقُوااللَّهَ وَذَرُوامَابَقِيَ مِنَ الرِّبَاإِنكُنتُممُّؤْمِنِين
(279) فَإِنلَّمْ تَفْعَلُوافَأْذَنُوابِحَرْبٍ مِّنَ اللَّهِ وَرَسُولِهِ ۖ وَإِنتُبْتُمْ فَلَكُمْ رُءُوسُ أَمْوَالِكُمْ لَاتَظْلِمُونَ وَلَاتُظْلَمُونَ
“O you who believe! Be careful of (your duty to) Allah and relinquish what remains (due) from Riba (usury), if you are believers. (2:278)
But if you do (it) not, then be apprised of war from Allah and His Apostle; and if you desist, repent, then you shall have your capital; neither shall you make (the debtor) suffer loss ( by asking for more) nor shall you be made to suffer loss (through decrease in value of your capital)”(Quran 2;279)
The Safety and Security of value of “Principal Capital” (اموال) is not an interpretation but an unambiguous Command of Allah which cannot be ignored or undermined through interpretations, if done, it would be distortion (Tehreef) in meanings of words of Allah, concealing truth (کتمانحق) is a major sin (گناہکبیرہ):
“Why do you mix truth with falsehood and knowingly hide the truth?”(Quran 3:71).
Allah said, … “And you shall not be dealt with unjustly” meaning, your original capital will not diminish. Rather, you will receive only what you lent without increase or decrease. The Messenger (Pbuh) of Allah during the Farewell Hajj said; “Verily, every case of Riba from the Jahiliyyah (days of ignorance) is completely annulled. You will only take back your capital, without increase or decrease (hence decrease in value of money due to inflation must be compensated) [Extract (Tafseer 2:278)- ibn Kathir](9)
Federal Shariat Court (FSC) & Riba(10)
Loss in value of Principal (devaluation) due to inflation, was considered as an issue not from religious but general point of view by Honorable Mufti Taqi Usmani Sahib in the 1999 Sharia Court Appellate Judgment(11). Many options were also given, but then the issue was sidelined, that, more research was needed on this aspect. Whether any research, study was conducted by him or anyone else during the last twenty two (22) years, only Allah knows.
The decision of the Federal Shariat Court of (FSC ) on Riba ban of 28th April 2022 is getting a lot of attention, it is a landmark decision for Islamic Banking. However the FSC has dismissed the issue related to inflation by stating that; indexation & inflation is not within their jurisdiction. The decision did not even mention the judgment of Mufti Taqi Usmani in 1999 and their recommendations for further research, hence this issue was closed (forever?).
Could it be due to the mistake (oversight), ignorance of scholars, intellectuals, economic experts, legal experts and media, or the conspiracy inspired by Satan? (Allah knows best), but a positive attitude requires that this lapse be treated as a great blunder. Every effort should be made to redress it by implementing the Commandment of Allah (لَاتَظْلِمُونَ وَلَاتُظْلَمُون) “you do no wrong (by taking usury), nor are you wronged (by reducing value of your principal)”.
It appears that our religious and legal scholarship dealing with this most important and sensitive issue is not aware of divine commandment stipulated in Quran 2:279. Had it been known there is no reason to sideline this important aspect.
Remember that believing in the Qur’an, reciting, understanding, acting on it and conveying its message to others is the responsibility of all Muslims:
“And We have made the Qur’an easy to understand; is there anyone who ponders?” (Qur’an 54: 17)(12)
When the majority blindly follow the scholars, understand the Quran only through the eyes of others, then such blunders take place.
Defiance and War with Allah & Messenger (Pbuh)
Compensation for decrease in value of Principal Capital of depositors due to inflation or any factor in Not Riba, according to Quran 2:279(13). The people who consider it Riba, should know that defiance of commands of Allah & Messenger (Pbuh) amounts to be at war: “.. they disliked what Allah revealed, so He rendered their deeds worthless.(Quran 47:9)(14)
However the Islamic Banking is much wider in scope which must be fully supported and encouraged to apply Islamic injunctions in trade and all spheres of economy.(15)
Pakistan inflation rates 1960-2020(16)
It’s interesting data, the inflation rates have been fluctuating between -0.52% in 1960 to 26.66% in 1974, 9.5% in 2021 and 26% in 2022(17). It proves that it is possible to bring inflation and interest rates to Zero like many developed economies.(18)
The rate interest data from 1956 to 2022 shows that it has been around 3.6% (1956) to 20% (1996), 14% in 2009, 8% in 2016, 13% in 2019, 8% in 2020 and 14% in 2022 (data taken from following charts are subject to slight error)(19). The discount rate data(20) shows that it reached an all-time high of 20.000 % pa in 1996 and a record low of 6.250 % pa in 2017(21). One can note its direct relationship with inflation in the above chart.
A Parable:
Suppose that the Bank/National Savings Center (NSC/government/State Bank) takes one hundred (100) grams of pure gold from Abdullah (depositor) and adds one gram of copper to it (inflation), so it becomes 101 grams of gold. They return 0.5 grams of this impure gold to Abdullah as profit and keeping the remaining 0.5 grams [Rate of 1 gram of 24 karat gold on 6 December 22 was Rs.12809]
One Molana Sahib says that 0.5 grams is interest/riba, it is haram – while the other says No, it is profit – the third Sahab thinks it is business! Abdullah says:
It is not “riba” (usury, interest) nor profit, but injustice and oppression, Allah says: (لَاتَظْلِمُونَ وَلَاتُظْلَمُون) “you do no wrong (by taking usury), nor are you wronged (by reducing value of your principal)”(Quran 2:279)(22).
Hence it is just partial compensation for inflation. Let us see how.
Adding impurity to gold or excessive money printing of currency notes is the same as it results in reduction in their original value – for example, 100 grams of gold is devalued due to addition of any other metal in the “original capital (gold)”. Apparently it is hundred grams of gold but it is not the real pure gold. It is impure gold mixed with impurity, making it of gold of lower value:
1Gm Gold Rates for different quality: Rs.10700 (24K), Rs.9808(22K), Rs.9363(21K), Rs.8025 (18K)(23) [Karat is measurement of purity of gold]
According to the Qur’an,
whoever repents (refrain) from riba, his principal capital belongs to him. He should not oppress anyone (by taking usury), then he will also not be oppressed (his principal capital should not be reduced to cause him loss) (Qur’an 2:279).
In this example, the 100 grams of gold that was returned by mixing 1 gram of copper in the original material is impure, if it is sold, it will get a lower price in the market, as shown in the above price chart. The Bank gave 0.5 grams (impure gold) as a profit out of depositor’s gold, and also kept 0.5 grams of gold – thus unjustly depriving Abdullah of some wealth from his own principal. The principal to be returned (100 gms is impure) which apparently looks like principal capital in weight but not in quality or value. Moreover the 0.5 gram that the government/state/bank took for themselves is also reducing Abdullah’s original capital – it is completely against the promise of Allah (لَاتَظْلِمُونَ وَلَاتُظْلَمُون).
This parable can be easily applied with the paper currency, the impurity is the excessive printing of currency which decreases the value of the original capital through inflation. If inflation is 26% (Nov 22), profit rate 14%, yet the depositor is at a loss of 12% (26-14=12%). How this 14% is called riba/ usury/ interest/ profit?
People like “Double Shah(24)“(master of a Ponzi scheme scam) are infamous for financial fraud who befool the people by giving them “Profits” from their own principal, such practice does not abhor well with the State.
Calling the money given to the depositor from his own original principal capital as usury/riba, the war against Allah and Messenger (Pbuh), a great sin, hellfire, impose fatwas declaring the employment and salary of bankers and financial institutions as Haraam is unfair and unjust (zulm). Moreover, to compensate for the loss of capital value (paper money due to inflation, excessive printing of currency) calling it profit/ income and levying 15% to 30% withholding tax, plus income tax is nothing but cruelty? Zakat is an obligation that purifies wealth.
Allah’s guidance and commands are eternal, applicable until the Day of Judgment, it is applicable to all kinds of currency, gold & silver. It lays down rules for borrowing and lending on paper, fiat, dollar, rupee, digital or whatever the future holds. The basic philosophy is:
(i) Guarantee of original capital
(ii) Do not take excess money (riba) from borrower
(iii) Do not reduce the value of original capital of lender/ depositor
(iv) Whosoever does not follow these principles is a tyrant – and the tyrant is the one who fights against Allah and the Messenger of Allah (Pbuh):
“O you who believe! Be careful of (your duty to) Allah and relinquish what remains (due) from Riba (usury), if you are believers. (2:278)
But if you do (it) not, then be apprised of war from Allah and His Apostle; and if you desist, repent, then you shall have your capital; neither shall you make (the debtor) suffer loss ( by asking for more) nor shall you be made to suffer loss (through decrease in value of your capital)”(Quran 2;279)
Where will the people (Abdullah) go?
Can such a law be said to be Islamic, which forbids adulteration and under weighing only for the people but not for the government?
Indexation
Indexation is a recognized and prevalent method by which the depreciation of the original currency due to inflation is removed and the original value of the capital deposit currency is established. Neither the depositor / lender gets more nor his principal capital value is reduced, not less, not more, this is justice, this is the requirement of Quran and Sharia – Islamic Development Bank’s Islamic Dinar(25) an example.
Gold & Inflation Effects on Rs
Take the example of Rs versus US$ and Rs versus gold to understand the increase in their value during the last 75 years. In 1947 Rs.3.31 (Principal) equals to = 1 US $, or 0.6770982456 grams of gold. First consider the Gold as a peg for indexation to counter the negative effects of inflation on the Principle which Allah has ordered to be preserved in its value. Gold has been used as a currency for centuries. The gold per tola or 11.66 grams price was Rs 57 in 1947. In August 2020, per tola price of gold was Rs.122,800, which signifies great change from Rs.57. The per tola gold price has thus recorded an average increase of 2871 % since 1947(26). In 1947 with Rs.3.31 (1 US $) one could buy 0.6770982456 grams of gold. In 2022 the gold rate was Rs. 9808 per gram hence the price of 0.6770982456 grams gold (equivalent to 1$/ Rs.3.31) is Rs.6640.97 or say Rs.6641, or One Rs in 1947 should be equal Rs.2006 if we peg it with gold.
It is imperative to note that in 1947, beef was sold at half a rupee per kg (units converted), mutton was priced at Rs.1.25 per kg, milk was available at 40 to 50 paisa per liter, wheat flour was priced at Rs.4 to 5 per maund (40kg), bread was worth at one anna (six paisa), and desi ghee was sold at Rs.2.50 to 3 per kg.
Variations in value of Rs with US$ & Gold
Increase in Value 1947-2022(27)
In 1947 Rs.3.31 (Principal) equals to = 1 US $, or 0.6770982456 grams of gold. A rough calculation(28) reveals that on Compound Interest @10.139%, the total amount after 75 years will be around Rs.6641. In other case if the compound Interest @7.52% total amount after 75 years will be around Rs.229 (present rate of 1 US $=Rs.229, then Rs.3.31=1$=Rs229). It may be noted that the actual value of Rs.3.31 after 75 years is almost zero! Our scholars think this is a fair, Riba free solution in line with Quran 2:279. [this is based on their general verdicts and opinions]
“… if you desist (from taking Riba/ usury), repent, then you shall have your capital; neither shall you make (the debtor) suffer loss ( by asking for more) nor shall you be made to suffer loss (through decrease in value of your capital)”(Quran 2;279)
“Indeed the worst kind of all beasts in the sight of Allah are the people that are deaf and dumb, and do not understand” (Quran 8:22)
The great philosopher, scholar and national poet Dr. Muhammad Iqbal said a century ago:
زمَنبرصُوفیومُلاّ سلامے: کہپیغامِ خُداگُفتَندمارا – ولےتاویلِ شاںدرحیرتاَنداخت: خُداوجبرئیلؑ ومصطفیؐ را
Translation: My Salaam to Sufi and Mullas for conveying the message of Allah to us. But the interpretations they made of those Commands, bewilders Allah, Gabriel & Muhammad(Pbuh)” (Iqbal)
However the Islamic Development Bank has a different opinion, it has pegged its “Islamic Dinar” with the SDR of IMF which is pegged with the basket of five most strong currencies of the world. (Details to follow).
“He bestows wisdom upon anyone He wills, and he who is given wisdom is in fact given great wealth, but only those who have common sense learn lessons from these things. (Quran 2:269)(29)
The above examples are just for explanation and understanding, the inflation and returns rates keep changing so every person can calculate for himself for understanding. The monetary and financial experts and bankers have to work out the methodology then some software can be developed for ease of calculations. Allah’s Commands are very clear and elaborate, which must be implemented in letter and spirit.
Twenty Modern Scholars Ignore Inflation
Consulting exegesis (tafseers) of twenty (20) famous commentators of the century, one is astonished to find that not even one scholar mentions inflation or fiat currency(30). Maybe they don’t know or this is not an issue for them.
Ibn Kathir (may Allah bless him) (1300–1373 C.E) centuries ago mentioned that the Messenger (Pbuh) of Allah while delivering his farewell Hajj Sermon announced the abolition of Riba and to ensure safe return of the principal capital without any loss to those who do not take Riba (usury)(31). The other commentators hastily repeated, but did not interpret this order to implement in the current era of fiat currency and inflation. What is the benefit of such knowledge? There is a lot of noise and slogans in the media: “abolish riba”, it has become more of a political slogan than a religious one – whereas the Quran is clearly ordering the full return of the original wealth and calling “decrease in its value” as oppression but no one talks about it?
“Do they not ponder over the Qur’an? Or are their hearts locked” (Qur’an 47:24)
Contemporary Jurists Justify indexation
A section of scholars including Rafiq al-Masri(32), Sultan Abu Ali, MA Manan, Ziauddin Ahmad, Umar Zubair and Gul Muhammad consider indexation to be permissible. They do not see anything in it that contradicts the Sharia laws, rather, they declare it to be in accordance with the principles of justice described in the Qur’an and Sunnah. While Mufti Taqi Usmani and some others differ, Usmani Sahib recommended further studies and research in his FSC judgment of 1999 (outcome of this research if conducted is not known). In Egypt, Grand Mufti Muhammad Abduh(33) fatwa in 1900 up to the year 2002, successive Muftis have declared interest “prohibited, permissible, and prohibited and then permissible again”(34),(35). Volume 1 of Investment Laws in Muslim Countries Handbook, states “an interest rate that did not exceed the rate of inflation was not Riba according to classical Islamic jurists.”(36) Suggestions to solve the problem include indexing loans or denominating loans “in terms of a commodity” such as gold, and doing further research to find an answer(37).
Islamic Dinar
There are already existing arrangements which can be considered for a possible solution for a Riba free economy. The Islamic Dinar of IDB (Islamic Development Banks) is considered as the IDB’s accounting unit. It is equivalent in value to one Special Drawing Right (SDR) of the International Monetary Fund (IMF)(38). Initially it was also equivalent to one U.S. dollar. After the collapse of the Bretton Woods system, the SDR was redefined as a basket of currencies. The SDR basket is reviewed every five years, or earlier if warranted, to ensure that the basket reflects the relative importance of currencies in the world’s trading and financial systems. These currency amounts remain fixed over the five-year SDR valuation period but the actual weights of currencies in the basket fluctuate as cross-exchange rates among the basket currencies move. The value of the SDR is determined daily based on market exchange rates.
1 Islamic Dinar = 1SDR =1.32993 $US=Rs.299.1544 [Rates as on: 16 December 2022](39),(40).
It provides ready-made solutions already adopted by Islamic Development Bank and other International institutions. Many decades have passed and we stand in dilemma, the scholars neither provide a solution nor adopt an existing one.
Conclusions
Following conclusions can be drawn from above discussion:
1. Fiat currency is the new issue of the present era which is used by corrupt and inefficient governments to create more money by excessive currency printing which is one of the causes of inflation, it decreases the value of principal deposits / savings.
2. The renowned scholars of the subcontinent Indo-Pak have no idea about the prevalent monetary system based on fiat, paper currency. Hence it is futile to expect a solution from them. Mufti Taqi Usmani Sahib understands the decrease in value of principal capital through inflation and its compensation through indexation. However he seems reluctant to take initiative.
3. Allah forbids Riba but also commands to protect the value of original principal capital. The monetary system generated interest rates vary with inflation, which partially compensate for the loss of Principal Capital value as guaranteed by Allah. How does it become Riba? Such mis-interpretation is injustice (zulm). (see Quran; (2:279, 18:27, 28, 55:9,11:85, 2:188);45:7-8, 38:29, 2:159, 49:6, 62:5, 8:22, & 2:18,16:76).
4. There are 26 countries with Zero Interest rates(41) in March 2021(42), 29 countries with less interest rate(43), some countries have a negative interest rate. The 5 Countries With the Lowest Interest Rates are Switzerland, Denmark, Japan, Sweden, Spain(44). The 20 countries with the lowest inflation rate in 2020.(45),(46)
5. The Government of Pakistan should control or eliminate inflation, end corruption, and improve financial/monetary management. Many countries, as mentioned, have controlled inflation and kept inflation and interest rate near zero. Pakistan also had a negative inflation rate -0.52 in 1960. It is still possible now.
6. The government should spend according to the system, increase the revenue, generate wealth, and implement the correct financial policies. However the rulers do not do this, rather print excessive currency notes, just like adding water to the milk. When inflation increases and the value of currency notes decreases – this is a robbery on the public’s pocket. The poor become poorer and keep working harder to fill the bellies of the corrupts.
7. There has to be compensation for the loss due to inflation, we take gold or $ or mixed basket of gold, stable currencies, market commodity prices, rate of inflation, or whatever it should be left to experts to find the solution which is in line with the Commandment of Allah, so that (لَاتَظْلِمُونَ وَلَاتُظْلَمُون) “you do no wrong (by taking usury), nor are you wronged (by reducing value of your principal)”.
8. The other method is partial or full indexation like every year salaries, pensions are partially indexed.
9. It is absurd to ask people to open a $ account and trade in $ or use gold bricks. The wealth must remain in circulation like blood in the body, lest it become stagnant. State must do its job, citizens should not be trading in multiple currencies and precious metals privately creating unresolvable disputes, claims with no legal coverage.
10. Hence if banks or NSC centers pay some %, which is equal to the loss in principal value due to inflation then it’s not Riba, but if average return is more than loss, then its Riba. [May be given in charity]. This is neither a fatwa nor legal ruling, but just a rational opinion based upon above mentioned data. Though some may agree and some may not.
11. Judging something halal or haram just by its appearance cannot be conclusive – if a person is drinking something in a glass, it cannot be decided just on the color of the drink alone that there is wine in the glass without investigation – similarly in the current monetary system in which apparently “Profit” is paid to the depositor but it is “not profit”, it’s compensation of the loss of actual value of principal capital due to inflation. It is a big blunder to issue fatwas of halal and haram just on apparent look, without thorough investigation and research.
12. It is clear that calling the current system “riba” is not appropriate, especially for the depositors of banks and national savings schemes. It is part of “Compensation” (Indexation) to the reduction in the value of depositor’s “real money” due to inflation – Inflation in November 2022 is 26% and returns 14% so the depositor is still at a loss 12% which is going to the government or banks or both but in any case not to the depositor. In fact, what the depositor is receiving in the name of profit is his original money, thus reducing the value of his original principal capital (this point needs pondering to understand). Allah’s order Quran (2:279) which was ignored. Moreover, calling this partial compensation as profit or income, charging withholding tax (15% to 30%) and then taxing the income is injustice/ zulm. Zakat is obligatory which purifies wealth.
13. Declaring salaries of bank employees as Haraam is also not in line. The Molanas have mostly read about gold and silver coins in Islamic history, they are not familiar with paper currency (fiat concept), nor are they aware of the negative effect of inflation on principal. While the Quran commands that the value of the Principal should not be decreased (this decrease could be due to any reason, theft, adulteration, blending, inflation) . It’s cruel, Zulm, which must be eliminated – but they are stingy in using the intellect.
a. “Indeed, the worst of living creatures in the sight of Allah are the deaf and dumb who do not use reason” (Quran 8:22)(47)
14. In hindsight the government, judiciary and Mulla seems to be in agreement with each other (hopefully not). It’s up to the judiciary and the experts to figure out how to compensate the depositors so that Commands of Allah (2:279) are fulfilled completely.
15. Allah has commanded: “— So fulfill the measure and weight and do not deprive people of their due and cause not corruption upon the earth after its reformation. That is better for you, if you should be believers.(Qur’an: 7:85)(48)
16. Those who are acting against the commands of Allah and ignoring the verses of the Qur’an should take care of themselves and worry about war with Allah and Messenger (Pbuh) for defiance.
17. It is very important to encourage and promote Islamic banking which is a comprehensive program to completely eliminate riba in all sectors. The profit earned by banks through more preferable participatory modes of musharaka, mudaraba and ijara would provide halaal income to the depositors.
Commands of Allah must be implemented in letter and spirit:
“So do you believe in part of the Scripture and disbelieve in part? What then is the re ward of such among you as do this but disgrace in the life of this world, and on the day of resurrection they shall be sent back to the most grievous chastisement, and Allah is not at all heedless of what you do.” (Qur’an 2:85)(49)
“O you who believe! Be careful of (your duty to) Allah and relinquish what remains (due) from Riba (usury), if you are believers. (278) But if you do (it) not, then be apprised of war from Allah and His Apostle; and if you desist, repent, then you shall have your capital; neither shall you make (the debtor) suffer loss (by asking for more) nor shall you be made to suffer loss (through decrease in value of your capital)”(Quran 2;279)
Insisting on the full implementation of the Qur’anic injunction (2:279) in strange times seems to be a futile endeavor but we are commanded: “… enjoin on each other truth, and enjoin on each other patience.” (Quran:103:3)(50).
It is hoped that this effort will act as a wakeup call for Islamic jurists, the SBP, bankers, politicians, intellectuals, financial experts and the government to fully implement the commands of Allah in the true spirit of (لَاتَظْلِمُونَ وَلَاتُظْلَمُون).
For further details visit:
Endnotes / References
1. https://www.investopedia.com/terms/f/fiatmoney.asp
2. “(Quran;16:89), https://bit.ly/QuranOnQuran
3. https://corpus.quran.com/wordbyword.jsp?chapter=4&verse=43#(4:43:1)
4. https://www.sbp.org.pk/IB/index.asp
5. https://salaamone.com/fsc
6. https://en.wikipedia.org/wiki/Repentance_in_Islam#Conditions_of_tawba
7. https://trueorators.com/quran-translations/47/9
8. https://islamicmarkets.com/education/riba-in-the-qur-an, http://shariah-legal-islamic-finance.blogspot.com/2013/11/quran-verses-on-riba-usury-interest.html
9. http://www.equranlibrary.com/tafseer/ibnekaseer/2/278
10. https://salaamone.com/fsc
11. ibid
12. https://trueorators.com/quran-translations/54/17
13. https://trueorators.com/quran-tafseer/2/279
14. https://trueorators.com/quran-tafseer/47/9
15. https://salaamone.com/islamic-banking/
16. https://www.macrotrends.net/countries/PAK/pakistan/inflation-rate-cpi
17. https://www.macrotrends.net/countries/PAK/pakistan/inflation-rate-cpi
18. https://www.brecorder.com/news/40175941/history-of-interest-rates-in-pakistan
19. Page 29 75 Years Economic Journey of Pakistan, GOVERNMENT OF PAKISTAN MINISTRY OF FINANCE
20. https://www.investopedia.com/terms/d/discountrate.asp
21. https://www.ceicdata.com/en/pakistan/money-market-and-policy-rates-annual/pk-discount-rate-end-of-period
22. https://tanzil.net/trans/en.shakir/2:279
23. Gold Rate In Pakistan, 1 December 2021 per gram. K for Karat purity of gold.
24. https://en.wikipedia.org/wiki/Double_Shah/ 1,700 victims of ‘Double Shah scam’ given Rs.93m https://www.dawn.com/news/1516540
25. The Islamic Dinar is considered as the IDB’s accounting unit. It is equivalent in value to one
Special Drawing Right (SDR) of the International Monetary Fund (IMF).
https://www.imf.org/en/About/Factsheets/Sheets/2016/08/01/14/51/Special-Drawing-Right-SDR
26. Unbelievable history of sugar, rice, gold price spiral since 1947 https://www.thenews.com.pk/print/704245-unbelievable-history-of-sugar-rice-gold-price-spiral-since-1947
27. https://www.calculatorsoup.com/calculators/financial/compound-interest-calculator.php/
28. ibid
29. https://tanzil.net/trans/en.maududi/2:269
30. https://trueorators.com/quran-tafseer/2/279
31. اگرتوبہکرلوتواصلمالجوکسیپرفرضہےبیشکلےلو۔ نہتمتولمیںزیادہلےکراسپرظلمکرونہکمدےکریانہدےکروہتمپرظلمکرے،
http://www.equranlibrary.com/tafseer/ibnekaseer/2/278
32. https://ar.wikipedia.org/wiki/رفيقيونسالمصري
33. https://en.wikipedia.org/wiki/Muhammad_Abduh
34. https://en.wikipedia.org/wiki/Riba#Modernism
35. Khan, What Is Wrong with Islamic Economics?, 2013: p. 204
36. International Business Publications, Inc. (2015). Investment Laws in Muslim Countries Handbook Volume 1 Investment Laws … Lulu.com. p. 23. ISBN978-1-4330-2397-2. Retrieved 20 October 2016.
37. Usmani, Historic Judgment on Interest, 1999: para 188, Khan, What Is Wrong with Islamic Economics?, 2013: p.204-6
38. https://www.imf.org/en/About/Factsheets/Sheets/2016/08/01/14/51/Special-Drawing-Right-SDR/ page 30, fn 20, https://www.sbp.org.pk/departments/ibd/faqs_irti_dr_munawar_iqbal.pdf
39. https://www.imf.org/external/np/fin/data/rms_five.aspx
40. 1US$=Rs.2.44.94 https://www.incpak.com/business/usd-to-pkr-dollar-rate-in-pakistan-today-16-december-2022/
41. https://tradingeconomics.com/country-list/interest-rate
42. https://tradingeconomics.com/country-list/interest-rate
43. https://tradingeconomics.com/country-list/interest-rate?continent=world
44. https://www.investopedia.com/articles/personal-finance/051415/5-countries-lowest-interest-rates.asp
45. https://www.statista.com/statistics/268190/countries-with-the-lowest-inflation-rate/
46. https://data.worldbank.org/indicator/FR.INR.RINR
47. https://trueorators.com/quran-tafseer/8/22
48. https://trueorators.com/quran-tafseer/7/85
49. https://trueorators.com/quran-tafseer/2/85
50. https://tanzil.net/trans/en.shakir/103:3
