P L d 2000 s c 225 (Riba prohibition stayed)

 

Per Justice Wajihuddin Ahmed, Member----

 

(zzz) Islamic Jurisprudence---

 

---- Riba---Concept---Brief historical survey of the position; analysis of concept of Riba at the etymological and epistemological levels; identification of foundations of the institution of Riba in Islam demonstrated through the relevant texts and Ahadith; connotations. and implications of Riba and to what extent and in what manner or form Riba interacts with modern day economies; what. foreseeable consequences would follow if the command as to Riba is duly enforced and what should be the mode and method of necessary translation of the command into actual practice---Islam does not permit Riba in any shape or form, whether amongst Muslims or between Muslims and non-Muslims (other than harbis) irrespective of the question where any of such contracting parties is domiciled or otherwise located--Prohibition applies equally to non-Muslims located within the bounds of a Muslim State---.Commandments as to Riba, inclusive of the present day practices of interest and usury, being all pervasive, transcend individuals and envelope not only groups of men or their institutions but even geographical entities such as State edifices---Concept of Riba itself has no nexus whatever either with productive or non-productive loans or the soft or hard terms upon which Riba is generated incidental to such loans---All interest-bearing loans or advances, whether between depositors and Banks, financial or other institutions or between any other category of borrowers and lenders, including Governments or their agencies, whether sovereign or otherwise, would be hit by the Islamic Injunctions concerning Riba and, as from the efflux of the time frame(s) prescribed no lender would be entitled to claim anything more than that loaned nor any borrower be liable to pay anything in excess of that borrowed---Interest which has already accrued, accounted/paid for or otherwise standing appropriated in the context of Ribawi transactions such as postulated in the Holy Qur’an and  Sunnah, would remain a matter between the offenders and their Greater---No disruption or’ irreversible chaos would follow upon a switch-over from a Ribawi economy to an Islamic economic order ---Riba-free economy may be a non-starter if the same is introduced in a continually selfish, dishonest and corrupt socio-economic milieu, such as that which prevails---Possible pre-emptive measures detailed.

 

His Lordship, after expressing general agreement with the findings and conclusions of Mr. Justice Khalil-ur-Rehrnan Khan and .qtr. Justice Maulana .Muhammad Taqi Usmani together with some explicit or implicit reservations, made the following express mention of some matters:--

 

“(i) With respect, the finding, that Riba al-Fadl was not envisioned in the Qur’an and introduced, for the first time, by the Prophet of Islam appears, both factually and historically, to be ill-founded. As dilated upon above, the concept had, broadly, found a place in the Old Testament and besides, Arabs of the time physically indulged in Riba al-Fadl, as the quoted Ahadith of Bilal (r.a.a.),. and the Prophet’s (s.a.a.w.s.) representative at Khyber would tend to demonstrate. Thus, the Qur’an cannot be assumed to have ignored either the previous revelations in the Scripture or the facts on the ground. Prophet (s.a.a.w.s.), nonetheless, has been fully credited with articulating and perfecting the institution of Riba al-Fadl. Even so. the view-, of my-learned brothers may not make any particular difference because, after the Qur’an, Sunnah is the most important source of Muslim Law and the Prophet (s.a_a.w.s.) never disc rinunated in the import or effect of either form of Riba. Thus, whatever be the rationale, Riba al-Fadl would remain as much prohibited for Muslims as Riba al-Nasiah.

 

(ii) In my humble opinion, Government, and particularly an Islamic Government, cannot be differentiated in the way of so-called “voluntary” additions and all such increases, upon the touchstone of Qur’an and Sunnah constitute nothing but Ribu. Furthermore, in so far as law-making touching the relevant Consolidated Funds and Public Accounts are concerned, two aspects need be under-scored:---

 

(a) In the absence of due fulfilinent of the Constitutional requirement w provide necessary framework on the point, all debt raising loses legal sanctity.

 

(b) After our declarations qua Riba, no law can now be framed, regulating Riba-infested borrowing by Government: Borrowing has now to be Riba-free and only if absolutely necessary, for Islam does not sanction any other form of borrowing.

 

(iii) Evidently, the objective behind some of the affirmative observations, regarding the “mark-up” system, is merely to sanction trading, upon duly and fully complying with the concepts of Bai .Muajjal and Marabaha sale, each observing the caution, administered by the Holy Prophet (s.a.a.w.s.) of physical delivery of the goods sold.

 

(iv) As regards the Shariah compliant modes and instruments of finance let it be noted that such already stand, very largely, developed. No unnecessary time should, therefore, be lost in that direction nor banks and other financial institutions should, in any manner, delay the due implementation of a Riba-free and profit and loss-oriented Islamic system.

 

(v) I have reservations about the time schedule, adopted in the Order of the Court. Besides, there are some lacunas in it. In my humble opinion comparatively smaller periods would have been sufficient. Any way, consensus, in essentials, is a prerequisite in such delicate matters and such is reflected in .the Order of the Court. Having said that, there should be no misgivings in any quarters that this or the Federal Shariat Court would brook any unnecessary delay during the implementation phase of the judgment of this Court. Thus, time schedule or not, no one, be it the Government itself, would any longer be countenanced to conduct any further avoidable Ribawi dealings, here or with the outside world. Transgressions, if any, can be appropriately brought to the notice of the Court.

 

(vi) Lastly, ‘ there are some aspects of the matter e.g., inflation/indexation and the argument of Mr. M. Aslam Khaki regarding the lawfulness or otherwise of a fixed (percentage) payment to the contributor of capital, subject to accrual of profits from a venture, on which 1 would like to reserve my opinion for a more appropriate time and occasion. For one thing, a true Islamic economy should. necessarily be inflation-free and, as to Mr. Khaki’s contention there are plenty of Islamic modes of finance to justify indulging, at this stage, in merely academic discussions.”

 

Arabic-English Lexicon by Lanes; ‘Mufiadat ul-Qur’an’ by Imam Raghib al-Isfehani;-Taj-ul-Aroos Min’Jawahar-ul-Qamoos by Md. Murtaza al-Zubaydi; Arabic English Dictionary by Stiengass; A dictionary of Islam from Thomas Patrick Hughes; Tafseer-e-Tabri by Imam Tabri; ‘Kitab alNihayah fi-Gharib al-Hadith wa’1-Athar’ by Ibn al-Athir; ‘Ahkam al Qur’an’ by Ibn ‘Arabi’s Tafsir of Kabir by Imam Fakhrud-Din Al-Razi; ‘Ahkam alQur’an by AlJassas; al-Fiqh ala al-Madhahib al-Arba’ah; II:265; XXIII:50: II: 276; XXX:39; XIII:17; XXVI:18; XVII:24; XII:5; XVI:92; LXIX:10; al-Room XXX:39; Al-Qur’an Majid: al-Nisaa IV:160--162; Aal-e-Imran III: 48--50; Aal-e-Imran 111: 130--136; al-Baqarah II: 219, 261, 275--277; 279-281; Luke 6: 32-36; Abu Daud; XXXIX:53; Muslim, 2966; 2969, 2971; Tirrttizee, 1161; Bukhari, 2145; AI-Musanif Abdur Razzaq, Vo1.8, p.26, Hadees. 14161; Kitab al Buyun; Exodus 22: 25-27; Leviticus 25: 35-38; Deuteronomy 23: 19-20; Shorter Oxford Dictionary, VOl.II, p.2326, ‘‘3rd Edn.; Messiah New Testament, Luke 6:35; A1 Burhan by Bahrani; Shorter Oxford Dictionary, Vol.l, 3rd Edn., p.1026; Encyclopaedia Americana, 1970; 39:53; Man and Money, published by the Institute of Islamic Culture, Lahore; S.IX:34-35;,S.XXX:39; S.XXXIV: 39; S.LVIL 18; S.LXXVI: 8-9; S.XC:, 13--17; S.XCIII: 6--11; II: 262--265; S.II: 274; S.11: 277; S.XXIII: 1--4; S. CVIL 1-7; S.Il: 245; S. LXIV: 17; S. lI: 177; S.III: 14; S.LIX: 7; S:XVI: 95-96; Bidayat al-Mujtahid, Vo1.2, p.163; Al-Tafseerul Kabir Razi, Vo1.7, p.91; Matba Bahria, 1938 and Ahkamul Qur’an by Imam Abu Bakar Al Jassas ref.

 

Per Justice Maulana Muhammad Taqi Usmani. Member---

 

(aaaa) Islamic Jurisprudence---

 

----Riba---Objective study of the Qur’anic verses dealing with Riba and their historical analysis tracing the time of prohibition of Riba.

 

AI-Qur’an Majid: Surah Al-Ruin (30 : 39); Surah Al-Nisa (4:161); Surah Al-Imran (3:13.0) and Surah AI-Baqarah, Verses 275--281 quoted.

 

Tafsir Jami’-al-Bayan, by Ibn Jarir, Dar-ul-Fikt, Beirut, 1984, V.21, pp.46--48; Zad-ul-Masir by Iban-al-Jauzi, Al-Maktab-al-Islami, Beirut, 1964,, V.6, p.304; Fath-ul-Bari by Ibn Hajar, Makkah, 1981, V. 8, p.205; Al-Tafsir AI-Kabir by AI-Razi., IIIrd Edn.. Iran, V.9, p.2; AI-Sunan by Abu Dawood, Hadith No.2537, V.3, p.20; Al-Muharrar-al-Wajiz by Ibn Atiyyah, Doha, 1977, V.2, p.489; Jami-al-Bayan by Ibn Jarir, Op Cit., V.3, p.107, Alwasit by AI-Wahidi, V.1, p.397; Ibn Atiyyah, Op. Cit., V.2, p. 489; Asbab-al-Nuzool by AI~Wahidi, Riyadh, 1984, p.87; Sahih Al-Bukhari Kitab-al-Tafseer, Chap. 53, Hadith No.4544 and Fathul Bari by Ibn Hajar, V.8, p.205 ref.

 

 (bbbb) Islamic Jurisprudence---

 

---- Riba---Meaning---Detailed account of Riba of Jahiliya---Riba of Jahiliya is a loan given for a stipulated period against increase on the principal payable by. the loanee.

 

Al-Qur’an Majid: Surah Al-Nisa; Surah Al-Imran; Surah AIBaqarah; Tafseer Al-Lubaab by Ibn Aadil AI-Dimashaqi, Vo1.4, p.448; AlTafseer AI-Kabeer by al-Raazi, Vol. 7, p.91, published in Tehran; Tafseer Ibn Jarir, Vol. 3, p.101; fiafseer by Ibn Jarir, Op Cit, Vol. 3, p.101; Al Suyuti, Lubab-al-Nuqool p.20; Tafseer ibn Abi Hatim, Vol. 2, p.454, Makkah, 1997 and Albahr-al=Muheet by Abu Hayan, Vo1.2, p.335 ref.

 

Al-Qur’an Majid: Deuteronomy 23:19; Psalms 15:1,2, 5; Proverbs 28:8; Nehemiah 5:7; Ezekiel 18:8,9 and Ezekiel 22:12 quoted.

 

(cccc) Islamic Jurisprudence---

 

---- Riba---Description of Riba al-Fadl with reference to the statements of Hadrat Umar, Imams and eminent Muslim Scholars on the subject.

 

Ahkamul Qur’an by Aljassas V. I, p.469; Holy Qur’an : Hand of Allah, 3:73, 5:63, 48:10; 2:223; Sahih Muslim, Karachi, V. p.25, Al- Darul-Kutub-al-Ilmiyyah by Ibn Qudamah Mughni, Beirut, V.4. pp.124--127; Albukhari, Hadith No.5266; Almusnnaf by Abdurrazzaq, Beirut, V.8, p.26; Ibn Majah, Book 12, Chap.58, Hadith No.2276, Riyadh 1999 and Tahdhibal-Tahdhib by Ibn Hajar, V.4, pp.64-65 ref.

 

(dddd) Islamic Jurisprudence---

 

---- Riba---Riba Al-Qur’an and Riba-AI-Nasiah---Nature and their prohibition.

 

(eeee) Islamic Jurisprudence---

 

----Riba---Productive and consumption loan---Nature of Qur’anic prohibitions ---Validity of such transaction of loan could not be based on the financial status of a party---Permissibility of interest can neither be based on the financial position of the debtor, nor on the purpose for which money is borrowed---Distinction between consumption loans and productive loans in this respect is contrary to the well-established principles---Banking and productive loans in the age of antiquity discussed.

 

Credit in Medieval Trade by Prof. M.M. Postan Combridge, 1944; Essays in Economic History, edited by E.M. Carus Wilson Edward Arnold, London, 1966, Vol.l, pp.61--87; Encyclopaedia Britannica, Banks, History of, V.3, p.67,’1950 Edn.; Simon and Schuster, New York, 1966, Vo1.2, p.274, Chap. XII by Will Durant; Fall of Roman Empire, Chap.44, The Institutes IV, Vo1.2, p.90 by Gibbon; Al-Balazuri, Fatooh-al-Buldan, pp.453-354, Beirut, 1983 and Murooj-al-Zahab by Al-Masoodi, Vol.2, p.333; Al-Aghani by Abdulfaraj, VOl.II, p.52; The Dinars Polished in the Land of Ceazer; ; Luwais Shikhu, Christianity .and its Culture among the Jahili Arabs, V.ol, 2, p. 387; Surah Al-Ikhlas Alnajoom Alzahirah 1:176; Sahih-al-Bukhari, Iitab-al-Manaqib, Book’ 63, Chap.19, Hadith No.3814 and Al-Baihaqi, Al-Sunan-al-Kubra, Vo1.5, p.349 ref.

 

(ffff) Islamic Jurisprudence ---

 

----Riba---Commercial loan---Prohibition of Riba is not only restricted to the consumption loans but extends to the commercial loans also.

 

AI-Qur’an, Surah Yousuf, 12:19,20; Suran Al-Imran (3:130); The Bible: Genesis, 37:25; Almufassal fi Tarikh-al-Arab Qabal-al-Islam by Dr. Jawad Ali; Alzubaidi, Taj-al-Arus 6:44; Nihayah-al-Arab 17:81, Imta’-al- asma’, V.1, p.75, Cairo, 1981; Iittta-al-A5ma, Op. Cit.; Al-Zurqani, Sharhal-Mawahib, V.1, :p.366; Al-Mufassal fi Tarikh-al-Arab, V.7, p.290; AlTabari, Jami-al-Bayan, V.3, p.107; Al-Abari, Jami-al-Bayan, V.21, p.47; Op. Cit.; Al-Haithami; Majma’-al-Zawaid V.4, p.133; Al-Bukhati, Book 39, Hadith No.2291; Fath-al-Bari, V.4, p.471; Trade through Sea, Book 34, Chap. 10, Hadith No.2063 by Imam Bukhari; AI-Suhaili, Al-Raud-al-Unuf, V.2, p.62, Multan, 1977, cf. Ibn Kathir: Al-Seerah al-Nabawiyyah, V.2, p.383, Tarikh-ul-Umam by Al-Tabari, V.2, p.137; Kitab-al-Jihad by Sahibal-Bukhari, Book 7, Chap. 13, Hadith No.3129 and its Commentrary Fath-alBari by Haifz Ibn Hahjar-al-Asqualani, V.6, p.162; AI-Tabqat al-Kubra by Ibn Saad, Beirut, V.3, p.278; Tarikh-al-Umam by AI-Tabari, V.3, p.87, Events of the year 23 A.H.; Al-Baihaqi, AI-Sunan al-Kubra, V.10, p.184; Al-Tabaqaat by Ibn Saad„ V.3, p.163; Kitab-al-Manaqib by Sahib-alBukhari, Book 63, Chap.19. Hadith No.3814 and AI-Tabaqaat al-Kubra by Ibn Saad, V.3, p.358 ref.

 

(gggg) Islamic Jurisprudence---

 

---- Riba---Prohibition---Prohibition of Riba is not confined to an excessive rate of interest----Any amount, however little, stipulated in addition to the principal in a transaction of loan, is Riba, hence prohibited----Principles.

 

Al-Qur’an Majid: Surah AI-Imran (3:130); Al-Muwatta, Bab-alQirad by Imam Malik; Surah Al-Baraqah 2:41; Al-Noor 24:33; Tafseer Ibn Abi Hatim, V.2, p.551, Hadith No.2925; Tafseer Ibn Kathir, V.1, p.331; Al-Shaukani, Nail-al-Awtar V.5, p.198; Muwatta Imam Maalik, p.613 by Noor Muhammad, Karachi; Op. Cit.; Albaihaqi, Al-Sunan Al-Kubra, V.5, p.350; Al-Baihaqi, Al-Sunan al-Kubra, V.5, p.350; Al-Bahaiqi A1-Sunan alKubra, V.5, p.350; AI-Syuti, Al-Jame’al Saghir, V.2, p.94; AI-Munawi, Faizulqadir, V.5, p.28; Al-Azizi, AI-Siraj al-Munir, V.4, p.20, Madinah; Ibn Hajar, Al-Talkhis-al-Habir V.3, p.996, Haidth No.1227, Makkah 1997; Al-Sunan al-Kubra V.5, p.350 and AI-Baihaqi, Ma’rifah-al-Sunan wa al Athar, V.8, p.169 ref.

 

(hhhh) Islamic Jurisprudence---

 

---- Interpretation of Holy Qur’an---Principles.

 

(iiii) Islamic Jurisprudence---

 

---- Riba---Prohibition---Gift by debtor to creditor ---Permissibility--Conditions---If the debtor and creditor ‘Were on friendly terms with each other and it was their habit that one of them used to give a gift to the other, then this type of gift can be acceptable even after the recipient has advanced loan to the giver---If, however, there were no such terms between, the creditor and the debtor before the loan transaction, then the creditor should not accept same, because that will have a smell of Riba.

 

(jjjj) Islamic Jurisprudence---

 

---- Riba---Ribd-al-Fadl and Bank loans ---Ahadith on Riba Al fadl are meant to cover the transactions of sale only and have nothing to do with the transactions of loan which are covered by the rules of Riba Al-Qur’an or Riba Aljahiliya where it clearly mentioned that creditor in a transaction of loan is entitled to claim only his principial amount, and if he does so, it has never been prohibited ---Transaction of interest-bearing loan fixing an amount as interest, right from the beginning of the transaction, is not covered by the prohibition of Riba Alfadl but by the Riba Al-Qur’an--Banking interest being not a transaction-of Riba Alfadl but that of a Riba Al Qur’an, was, therefore, Haram---Principles.

 

Sahih-al-Bukhari, Book No.34, Chap.78, Hadith No.2177; Aljassas: Akham-ul-Quran, Lahore 1980 V.1, pp.482, 483 and Al-Sunan by Ibn Majah, V.3, p.154, Hadith No.2431, Beirut, 1996 ref.

 

(kkkk) Constitution of Pakistan (1973)---

 

----Art. 203-B---”Muslim Personal Law”---Law---Definition--=Statute laws, even though applicable only to Muslims 111 general, do not fall under the term “Muslim Personal Law” for the purpose of Art. 203-B of the Constitution.

 

Dr. Mahmoodurrahman Faisal v. The Government of Pakistan PLD 1994 SC 607 fol.

 

(llll) Islamic Jurisprudence---

 

----Riba---Prohibition---Basic cause of prohibitions ---lllat---Basic difference between Mat and Hikmat---Zulm (injustice)---Basic Mat of the prohibition is Zulm---Holy Qur’an has not left it to the assessment of the parties to decide what is injustice (Zulm) and what is not ---Qur’an has precisely decided. what is injustice (Zulm) for each one of the two parties in a transaction of loan--Notion that the permissibility of different transactions of interest should be judged on the basis of human assessment, would tantamount to defeating the very purpose of the revelation and is not, therefore, acceptable.

 

Al-Qur’an Majid: 5:91 ref.

 

(mmmm) Islamic Jurisprudence---

 

---- Riba---Prohibitions---Rationale--Logic of prohibition on theoratical ground; evil effects of interest on production and evil effects of interest on distribution examined with focus on nature of money and nature of loan transactions---Interest-based loans have a persistent tendency in favour of rich and against the interests of common people---Such loan carries adverse effects on production and allocation of resources as well as on distribution of wealth---Appalling situation faced by the whole world is the logical outcome of giving the interest-based financial system an unbridled ‘power to reign the economy---Commercial interest is not an innocent transaction, in fact the universal horrors brought about by the commercial interest are far greater than the individual usurious loans that used to affect only some individuals.

 

Ihya-al-Uloom, V.4, pp.88-89, Cairo, 1939; Ludwig Von Mises The Theory of Money and Credit Liberty Classics Indicanapolis, 1980, p.95; Op. Cit, P.95; Op Cit, p.102; The Report of Economic Crisis Committee, Southampton Chamber of Commerce, 1933, Part 3, (iii) para.2; John Gray, False Dawn; The Delusions of Capitalism, Grunte Books, London 1998, p.62; Bank of International Settlements, Annual Report, 1995; Michael Albert, Capitalism - Original Capitalism, London Whurr Publisher, 1993, p.188; Richard Thomson: Apocalypse Roulette: The Lethal World of Derivatives, Macmillon, London 1998, p.4; James Robertson, Transforming Economic Life: A Millenial Challenge by Green Books Devon, 1998; Iha-a-ul-Uloom by Alghazzali; Sahih-al-Bukhari, Book No.39, Chap,3, Hadith No.2295; OECD Structural Indicators, 1996, Bank of Enudand and Council for Mortgage Lenders Statistics, as quoted by Michael Rowbotham in The Grip of Death, Jon Carpenter Publishing, England, 1998, p.65; Peter Warburton Debt and Delusion by Allen Lane, London 1999, p.261; Thurow, Lester, Zero-Sum Society by New York: Basic Books, 1980, p.175; Poverty, Inequality and Development by Bigsten, Arne, in Norman Gemmel Surveys in Development Economics Oxford by Blackwell, 1987, p.156; Morgan Guarantee Trust Company of New York, World Financial Markets, January, 1987, p.7 as quoted by Dr. llmar Chapra; Statistical Bulletin of State Bank of Pakistan, September. 1999, p.47, Annexure ‘B’; Future Wealth: A New Economics for the 21st Century by James Robertson, Cassell Publications, London, 1990, pp. 130, 131; Transformation of Economic Life: A Millenial Challenge by James Robertson, Green Books, Devon, 1998, pp.51-54; The Grip of Death, A Study of Modern Money by Michael Rowbotham, Jon Carpenter, England, 1998, Chaps. 13 to 15; The Money Masters by Patric S.J. Carmack and Bill Still, Royalty , Production Company, USA, 1998; Pawns in the Game by William Guy Carr, Fla USA Chap. 6; The New World Order by Robert O’Priscoll and Margarita Ivanoff-Dubrowsky, Canada, 1993; Bank of England Releases, 1995,, 1997 as quoted by Michael Rowbotham in ‘The Grip of Death - A Study of Modern Money’, Jolt Carpenter, England, 1998, p.131; The Money Masters, How International Bankers Gained Control of America by . Patriot S.J. Carmack and Bill Still, Royalty Production Company, 1998, pp:78-79; The Grip of Death: A Study of Modern Money by Michael Rowbotham, Op Cit, pp.27, 2,8; The Challenge of the 21st Century by Prof. Khrushid Ahmad, Islamic Finance and Banking; Time, November, 3, 1997, Newsweek - January 26, 1998 and September 14, 1998 and Transforming Economic Life: A Millenial Challenge by James Robertson, Grean Books Devon, 1998, pp.51--54 ref.

 

(nnnn) Islamic Jurisprudence-

 

---- Riba ---Prohibitions---Interest and indexation ---Interest and indexation though neither Justify interest nor provides a substitute for the same in the Banking transactions, however, question of interest and indexation was left open for further study and research by the Court.

 

(oooo) Islamic Jurisprudence---

 

Riba---Prohibitions---Mark-up system-.-Permissibility---All the objections against interest are very much applicable to the mark-up system as in vogue in Pakistan and said system is not immune from being declared as repugnant to the Holy Qur’an and Sunnah.

 

(pppp) Islamic Jurisprudence-

 

Riba---Qarz and Qiraz---Term “Qiraz” is used in Islamic Fiqh as a synonym to Mudarabah and in an agreement of Mudarabah no rate of profit attributable to the investment can be allocated for the financier---Any such arrangement is impermissible.

 

(qqqq) Islamic Jurisprudence---

 

---Riba-Prohibitions---Islamic Financial System---Application of doctrine of necessity---Scope---Domestic transactions and foreign transactions--Before deciding an issue on the basis of necessity one has to be sure that the necessity is real and not exaggerated by imaginery apprehensions and that necessity cannot be met with by any other means than committing an impermissible act---Held, there was a great deal of exaggeration in the apprehension that the elimination of interest will lead the economy to collapse---Doctrine of necessity, therefore, cannot be applied to protect the present interest-based system for ever or for an indefinite period---Said doctrines, however, can be availed of for allowing a reasonable time to the Government necessarily required for the switch-over to an interest-free Islamic financial system.

 

(rrrr) Islamic Jurisprudence---

 

--Financing in Islam---Profit and loss sharing---Basic and foremost characteristic of Islamic financing is, that instead of a fixed rate of interest, it is based oil profit and loss sharing.

 

Transforming Economic Life A Millenial Challenge by James Robertson, Green Book, Devon, 1998; Honest Motley: A Challenge to Banking by John Tomlinson, Helix 1993. pp. l l5-I 18: The Grip of Death: A Study of Modern Money by Jon Carpenter, 1998 by Michael Rowbotham. p.330: Islamic Finance: A Partnership for Growth by Philip Moore, Euromoney Publishers, 1997, p.73: Theoretical Studio, in Islamic Banking and finance by Mohsin H. Khan and Abbas Mirakhor. Houston 1987, p. 168 and Debt and Delusion: Central Bank Follies That Threaten Economic Disaster by Peter Warburton, Allen Lane, 1999, pp.224-225 ref.

 

(ssss) Islamic Jurisprudence---

 

---- Financing in Islam ---Musharakah financing---Some objections---Measures to be adopted.