Govt announces end to riba in five years, SBP, NBP to withdraw pleas: Dar

[EasyNow]

Though it seems like that, money supply has to be carefully balanced against demand and economic activity to prevent inflation (or deflation). It is a very difficult job. That is why most currencies around the world, except a few, depreciate rather fast. Removing interest, only makes things worse as there is no feedback signal for the central bank to know market condition. Removing interest will so distort capital allocation that the economy will seize very quickly. It will be worse than devaluation. More like demonetization.

Can you explain this in layman's terms pls - how will the average man on the street experience the effect?

 

[Mentee]

Can you explain this in layman's terms pls - how will the average man on the street experience the effect?

A junkie is so much into booze that the mere thought of quiting gives him a panic attack. In other words the economic terrorism continues.

 

[mangochutney]

ISLAMABAD: Finance Minister Ishaq Dar has stated that the federal government has decided to withdraw the State Bank of Pakistan (SBP)’s and the National Bank of Pakistan (NBP)’s appeals from the Supreme Court against Sharia court with respect to make the economy interest-free in the next five years.

The finance minister announced this through state-owned new channel on Wednesday.

The minister said that he would like to share a decision taken by the government on behalf of the prime minister and allies with regard to withdrawal of appeals against Sharia Court verdict from the SC.

Ishaq Dar said that with the permission of the prime minister and after consultation with the SBP, he was announcing that the SBP and the NBP would withdraw its two appeals from the SC against Sharia Court verdict.

The minister added that Federal Sharia Court in recent past had given a decision for transforming Pakistan’s economy to make it interest (Riba)-free in the next five years.

He said that the matter was deliberated in detail during the last few weeks and consultation were also held with Governor SBP on the matter besides discussion on future road maps. Dar said that during 2013-18 considerable progress was made for promoting Islamic banking system and a special committee with prominent religious scholars was also established. However, he said that during the last few years the progress was not that speedy.

The minister said that the government would make effort to implement the Islamic System in Pakistan, however, would not he possible to shift immediately due to various challenges as entire banking system is implementing a system for the last 75 years.

Govt announces end to riba in five years | The Express Tribune

Dar says FSC’s order on interest-free banking to be implemented

tribune.com.pk

BR-ePaper | Nov 10, 2022 | Page Front Page 1

epaper.brecorder.com

https://twitter.com/x/status/1590353386603700224

 

[Sayfullah]

Name the country so I can also relax and laugh

Literally any other country. Even the many of the openly secular countries are more Islamic than Pakistan because they don’t have bills such as the transgender bill making lgbtq allowed. Almost if not all other Muslim countries are much more Islamic than Pakistan in every way shape or form. Very Texas state in USA probably more Islamic than Pakistan.
You have people making haram into halal and openly committing acts of KUFR in Pakistani parliament. The transgender bill was an act of KUFR because you rejected the verses of the Quran you rejected what happened to the people of Lut A.S . and in the disguise of intersex people you legalized lgbtq. Just this single point alone by default makes Pakistan probably the least Islamic country in the world. And this is just one example. Pakistan has been at war with islam since it started doing riba and many Pakistanis tried justifying riba. It’s one thing to sin but trying to make a sin into halal is akin to an act of kufr. Your army chiefs religion is unknown he married into a qadiyani family his in laws still part of qadiyani cult and bajra still leading a Muslim army despite high chances he might be a qadiyani. Go have a look at our constitution you’ll see how Islamic it is. This is just the state of Pakistan I’m talking about I haven’t even got into what type of people are ruling over us.
Hazrat Abu Bakar R.A. waged war on a people because they rejected Zakat but did everything else a Muslim does. Compare this to the crimes Pakistani state has committed. Only reason you don’t see mass rebellion here is because it’ll lead to greater fitna as Pakistani people like you wouldn’t support it and instead continue living in your dream that Pakistan is Islamic.

 

[Mrc]

Literally any other country. Even the many of the openly secular countries are more Islamic than Pakistan because they don’t have bills such as the transgender bill making lgbtq allowed. Almost if not all other Muslim countries are much more Islamic than Pakistan in every way shape or form. Very Texas state in USA probably more Islamic than Pakistan.
You have people making haram into halal and openly committing acts of KUFR in Pakistani parliament. The transgender bill was an act of KUFR because you rejected the verses of the Quran you rejected what happened to the people of Lut A.S . and in the disguise of intersex people you legalized lgbtq. Just this single point alone by default makes Pakistan probably the least Islamic country in the world. And this is just one example. Pakistan has been at war with islam since it started doing riba and many Pakistanis tried justifying riba. It’s one thing to sin but trying to make a sin into halal is akin to an act of kufr. Your army chiefs religion is unknown he married into a qadiyani family his in laws still part of qadiyani cult and bajra still leading a Muslim army despite high chances he might be a qadiyani. Go have a look at our constitution you’ll see how Islamic it is. This is just the state of Pakistan I’m talking about I haven’t even got into what type of people are ruling over us.
Hazrat Abu Bakar R.A. waged war on a people because they rejected Zakat but did everything else a Muslim does. Compare this to the crimes Pakistani state has committed. Only reason you don’t see mass rebellion here is because it’ll lead to greater fitna as Pakistani people like you wouldn’t support it and instead continue living in your dream that Pakistan is Islamic.

90 percent of Muslim countries today are absolute monarchies or dictatorships where you will b killed just by writing what you wrote . Possibly with your family .

So that's not Islamic and I would put it above LGBT issue.

Out of rest of 10 percent , none has any limitations on LGBT the thing you blame Pakistan for .

By the way LGBT law went to Islamic ideology council and passed with flying colors ...
It may have been a mistake and that can always be corrected ...does not mean that we have to marry same sex now

So have some knowledge before debate unless you want a debate on delusions


And Texas is more Islamic than all Muslim countries these days I agree

 

[epebble]

Can you explain this in layman's terms pls - how will the average man on the street experience the effect?

For an average man:

1. With no interest on deposits, there is no incentive for saving. So, money will be spent - either for consumption or private "investment" like buying jewelry or house or land etc., This will generally increase demand leading to inflation in supply constrained resources.
2. With no deposits forthcoming, banks have no money to lend. So, legitimate businesses who may need capital for investment or working capital don't have funds to run business. So, they can't expand business or run existing business. That will cause lower profits, lower employment, lower production ....
3. With no incentive to earn interest, banks have no incentive to give loans anyway. same as before - no investment, no profits, no employment, no production - general all-round increase in poverty, unemployment and inflation.
4. With legitimate banking suppressed, underground "bankers" will get into business (moneylenders/loan sharks). They will exploit poor people and that will breed violence in society.

If you think problems are bad now, they will get a lot worse, quickly. Someone has to just take a look at failed economies like Somalia, Ethiopia, Sudan and Haiti.

 

[Sayfullah]

90 percent of Muslim countries today are absolute monarchies or dictatorships where you will b killed just by writing what you wrote . Possibly with your family .

So that's not Islamic and I would put it above LGBT issue.

Out of rest of 10 percent , none has any limitations on LGBT the thing you blame Pakistan for .

By the way LGBT law went to Islamic ideology council and passed with flying colors ...
It may have been a mistake and that can always be corrected ...does not mean that we have to marry same sex now

So have some knowledge before debate unless you want a debate on delusions


And Texas is more Islamic than all Muslim countries these days I agree

Tyrant governments are better than governments and that commit kufr. Tyrant governments commit sins. Pakistani parliament committed an act of kufr with its transgender bill. After that bill there was nothing else Islamic left in Pakistan. At least arab countries like Saudi haven’t committed kufr on a government level.
Doing acts of kufr and using Islam later to make people stupid is even worse. At least secular countries don’t claim to be Muslim while doing kufr.
LGBTQ passing Islamic ideology Council doesn’t mean shit. They aren’t saints or perfect. They could have made a mistake or have people infiltrated in it. And this just solidifies my point that Pakistan even uses stuff like “Islamic ideology Council” before doing acts of kufr which is even worse. JI and many others filled against this transgender bill and used Islamic evidence to prove it wrong. Even United Nations doesn’t label transgender as intersex like Pakistan does.

Seems like you’re a very ignorant person who is far from reality.
You’re tryna debate but haven’t even said how Pakistan is Islamic. Their parliament openly commits an act of Kufr and you’re still not able to prove it otherwise.

Texas might be more Islamic than many other Islamic countries, but we’re talking about Pakistan. What’s your excuse for Pakistan being what it is? You won’t even be able to blame Shaytan on day of judgement for your sins and you’re tryna say since other countries are less Islamic it gives Pakistan a pass to be how it is?

 

[Maula Jatt]

Tyrant governments are better than governments and that commit kufr.

you are sitting in canada - by your own metric you should be moving out to iraq or something

 

[Mrc]

Tyrant governments are better than governments and that commit kufr. Tyrant governments commit sins. Pakistani parliament committed an act of kufr with its transgender bill. After that bill there was nothing else Islamic left in Pakistan. At least arab countries like Saudi haven’t committed kufr on a government level.
Doing acts of kufr and using Islam later to make people stupid is even worse. At least secular countries don’t claim to be Muslim while doing kufr.
LGBTQ passing Islamic ideology Council doesn’t mean shit. They aren’t saints or perfect. They could have made a mistake or have people infiltrated in it. And this just solidifies my point that Pakistan even uses stuff like “Islamic ideology Council” before doing acts of kufr which is even worse. JI and many others filled against this transgender bill and used Islamic evidence to prove it wrong. Even United Nations doesn’t label transgender as intersex like Pakistan does.

Seems like you’re a very ignorant person who is far from reality.
You’re tryna debate but haven’t even said how Pakistan is Islamic. Their parliament openly commits an act of Kufr and you’re still not able to prove it otherwise.

Texas might be more Islamic than many other Islamic countries, but we’re talking about Pakistan. What’s your excuse for Pakistan being what it is? You won’t even be able to blame Shaytan on day of judgement for your sins and you’re tryna say since other countries are less Islamic it gives Pakistan a pass to be how it is?

I am sure you probably will like to behead me....


Do you even know what kuffar means??

Did you read the bill before declaring 220 million Muslims kaafirs??

Go blow your self in some shithole country

Don't tag me again

 

[HAIDER]

https://twitter.com/x/status/1590347479429836801

interest free ...... lol...... u are serious, how it's possible... Pakistan changing all world wide banking practices....

 

[Sayfullah]

you are sitting in canada - by your own metric you should be moving out to iraq or something

Wdym by my own metric? Did I say Pakistanis must move from Pakistan? Islam allows us to live in kaffir land if they allow freedom of religion which Canada does. Pakistan is Muslim land in which a government is committing acts of kufr and leading Muslims astray. Kaffir countries are openly kaffir but Muslim countries which act like kaffir countries are far worse than kaffir countries.
Ofc someone crying for secularism always won’t understand what I’m saying. You gotta be Islamic literate too.

 

[Sayfullah]

I am sure you probably will like to behead me....

Never said that.

Do you even know what kuffar means??

Yes I do.
But clearly you can’t read. I said “act of kufr”. Open your eyes.

Did you read the bill before declaring 220 million Muslims kaafirs??

Never said that.
You’re putting words in my mouth and tryna defame me. Fear Allah.
Prove I said 220 million Muslims of Pakistan are kaffirs. You really need to learn to read.

Go blow your self in some shithole country

That’s why you jahil’s do.
Your dear establishment sent many of our citizens to do that in Afghanistan. Maybe you could be next? Ameer ul momineen bajra bin Pakistani might order you to blow your self up for Islamic Emirate of Pakistan.

Don't tag me again

Kid you’re the one tagging me tryna argue with 0 facts. Don’t start shit if you can’t handle it. Don’t @ me and argue if you can’t handle a response.
If you need, I have some contacts to good neurologists. You might wanna get your self checked out for your inability to read and short term memory.

 

[prashantazazel]

The effect of zero interest rate would be similar to the effect of extremely low interest rates. I think you see those in Japan, Germany, etc.

It is doable for a rich and powerful country, which either:
1. Produces most of what it consumes or

2. Exports enough to trade for what it doesn't produce.

It would be catastrophic for a poor country.

 

[epebble]

The effect of zero interest rate would be similar to the effect of extremely low interest rates. I think you see those in Japan, Germany, etc.

It is doable for a rich and powerful country, which either:
1. Produces most of what it consumes or

2. Exports enough to trade for what it doesn't produce.

It would be catastrophic for a poor country.

Japan and Germany have very low inflation, so low interest rates there is not a big deal. It is a huge deal when inflation is in double digits as in most developing countries, including Pakistan. For them, zero interest means, net negative real interest rate. Since if you borrow 1,000 Rupees today and return it 3 years later, if the inflation is 20%, you are returning only 400 Rupees in today's Rupees.

 

[prashantazazel]

Japan and Germany have very low inflation, so low interest rates there is not a big deal. It is a huge deal when inflation is in double digits as in most developing countries, including Pakistan. For them, zero interest means, net negative real interest rate. Since if you borrow 1,000 Rupees today and return it 3 years later, if the inflation is 20%, you are returning only 400 Rupees in today's Rupees.

A very good example.