Recently, Federal Shari’ah Court of Pakistan has given its judgement on the Riba case. Islamic Economics Project is making a humble effort to collect the views of Shari’ah scholars, regulators, practitioners, lawyers and academic experts to deliberate on the future course of action and generate ideas and debate on how to make this transformation possible. In this regard, we got the chance to get reaction and response from Mufti Dr. Zubair. We hope that the views expressed and shared with relevant audience and stakeholders will generate practicable ideas and keep the momentum towards achieving the end goal of an economy that is in compliance with Shari’ah and is able to utilize the instruments and institutions in the Islamic economic teachings.
In lease based contracts, such as Ijarah and Diminishing Musharakah, the rental indices can capture the true essence of pricing as per the nature of transaction.
This paper discusses the preconditions for the development of a pure form of Islamic finance that is Shari’ah based as well as fulfilling the higher goals of Islamic teachings, i.e. Maqasid-e-Shari’ah.
It is important that in critical evaluation of Islamic banking and finance, both the perspective (economics or Shari’ah) must be clearly acknowledged and for evaluation from the Shari’ah perspective, the knowledge and comprehension gap is filled too for better mutual understanding and resolution of conflicting viewpoints.
When a common person tries to form an opinion about Islamic banking, he hears cliché sayings about Islamic banking, such as ‘Currently, Islamic banking and finance are not truly Islamic’, ‘It is only changing of conventional terms into Islamic terms’ and ‘Islamic banking is an oxymoron as banking cannot be Islamic’. This brief article discusses some points that will help in better understanding Islamic finance and Islamic banking in particular.