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.
“These institutions regulate the banking system and corporate sector – the finance ministry will extend its full support to these institutions.”
He also advised Islamic banks to make their services competitive enough to compete with conventional banking services.
