Interest free economy in Pak. from July

By B. Muralidhar Reddy

ISLAMABAD, JAN. 8. Pakistan would switch over to interest free Islamic economy from July 1 as per the Supreme Court judgment of December 1999.

The Minister for Religious Affairs, Dr. Mahmud Ahmed Ghazi, has been quoted by the official news agency, Associated Press of Pakistan, as saying that the government intends to promulgate Riba Prohibition Ordinance before July this year and any one who violates the provisions of the would be penalised.

The out of the blue announcement made by the Minister even as serious doubts are being expressed over the practicability of enforcement of an interest free economy has given room to speculation that it is yet another concession aimed at the religious lobby in the country by the military government.

The announcement is being interpreted as a response to demands from various religious organisations in Pakistan for enforcement of ``Islam'' in the country.

In the last week of December the chief of Tanzimul Ikhwan, Maulana Akram Awan, had threatened a march with three lakh of his followers in support of their demand for enforcement of Sharia.

The Maulana agreed to postpone the march only after the top brass of the military government went over to his headquarters in Chakwal and reiterated the commitment of the government to enforce Sharia. Among those who called on him included the Home Secretary of the Federal Government and the Director General of Police, Punjab province.

Several religious organisations and parties in Pakistan in the last few months have been pressuring the military government to enforce Islamic laws in the country. The Jamaat-e- Islami has threatened to launch an agitation to dislodge the Musharraf Government for its alleged ``secular tilt.''

The consensus among economists is that introduction of a interest free economy could spell chaos and cause serious damage to the polity. The banking sector could be the worst hit under the new system.

Besides switchover to the new system would require drastic changes in a number of existing laws in the country. The government has constituted a commission to look into the ramifications of the new system.

Send this article to Friends by E-Mail

Section  : International
Previous : Musharraf, Bashar slam Israel
Next     : Plea to review decision on Nadeem's extradition