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Pakistan Asks For Al Azharâs Fatwa Allowing Bank Interest
The Pakistani government has asked the Egyptian Foreign Ministry to provide it with the text of the fatwa (Islamic ruling) issued by Al Azhar which permits banksâ fixed interest rates in addition to the discussions which took place inside the Islamic Research Center before the issuing of the fatwa to present it to the Pakistani Supreme Islamic Court. Al Azhar received a letter from the Egyptian Foreign Ministry indicating the interest of the Pakistani government regarding the fatwa because of a problem Pakistan has been facing since the Islamic federal court in Pakistan issued December 1999 a ruling regarding the importance of finding a banking system which does not use fixed interests because it is considered as usury."We've shot ourselves in the foot. Can you help us get the bullet out?" The court gave the government 18 months to carry out this task and this has been further postponed for another year in the middle of year 2001, after several appeals were filed by Pakistani banks. The letter which was sent to the Egyptian Foreign Ministry and which IslamOnline received a copy of on Sunday, January 13, said that the Pakistani press explained that despite the fact that Pakistan does not have to abide by the Al Azhar fatwa, it needs to be considered when looking at annulling or amending the ruling of the Federal Pakistani court. They prefer the hair-splitting of the learned Egyptian mullahs to the ravings of their local holy men... The Center issued on November 28, a fatwa allowing Bankâs interests and it has also been authorized by Dr. Tantawi, head of Al Azhar, December 4, 2002. The fatwa stated that putting forward money and savings to banks for investments in return for a fixed profit to be given to the moneyâs owner is a form of permissible transaction because there is nothing in the Qurâan or Sunna (prophetic tradition) that bans this form of transaction in which the profit is determined in advance if both sides agree. Since that's the way banking is done, that sounds reasonable... However, many Muslim scholars have repeated their opposition to the fatwa and released several fatwas prohibiting banksâ interests both before and after Al Azhar allowed it. A little difference of Islamic opinion here? Wonder which side will order the other killed? The charging of interest, known as riba, was declared un-Islamic by Pakistanâs top Islamic court, the Federal Shariâat Court, in 1991. But the government, led by then-premier Nawaz Sharif, appealed the verdict. Sharif later tried to withdraw his appeal but was not allowed, amid accusations by Islamic parties that he was obstructing Islamization. âIt is hereby held that any amount, big or small, over the principal in a contract of loan or debt is riba prohibited by Holy Qurâan, regardless of whether the loan is taken for the purpose of consumption or for some production activity,â the Pakistani Supreme Courtâs decision said at the time. âThe present financial system based on interest is against the injunctions of Islam as laid down by the Holy Qurâan and Sunna [traditions of Prophet Mohammad, PBUH]. And in order to bring it in conformity with Shariâa, it has to be subjected to radical changes,â it added. Another example of taking a reasonable principle to unreasonable lengths. Usury, in common usage, refers to exorbitant interest rates â what Big Guido would charge you. Reasonable interest rates are a desirable tool, otherwise you have no banking system, which means you remain an economic backwater. But that's okay. At least you're holy, aren't you? Posted by: Fred Pruitt 2003-01-13 |
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