Pakistan would be seeking an end to Riba (interest-based banking) ‘as far as practicable by Jan 1, 2028’, according to the draft of the constitutional amendment that was approved by the special parliamentary committee on Friday.

The ruling coalition has sought an amendment to clause (f) of Article 38 of (promotion of social and economic well-being of the people) of the Constitution.

The existing clause cites “eliminate riba as early as possible” and the government wants the expression to be replaced by “as far as practicable, by the 1st January, 2028”.

This is among 26 changes to the Constitution sought in the law. It merits here mentioning that it was proposed by the Jamiat Ulema-e-Islam in its draft.

On April 28, 2022, the Federal Shariat Court mandated the government to eliminate Riba (interest) from Pakistan by December 31, 2027, declaring its prohibition in all forms as aligned with Islamic principles and the teachings of the Quran and Sunnah.

The court emphasised that the five-year period leading up to this deadline is sufficient for transforming Pakistan’s economy into one that is equitable, asset-based, risk-sharing, and free from interest.

The ruling was delivered by a three-judge bench, including FSC Chief Justice Muhammad Noor Meskanzai, Justice Dr. Syed Muhammad Anwer, and Justice Khadim Hussain M Shaikh. The extensive 298-page judgment clarified that any interest associated with government borrowings, whether from domestic or foreign sources, constitutes Riba and is explicitly prohibited by Islamic law.

Additionally, the court directed both federal and provincial governments to amend relevant laws to ensure compliance with Islamic injunctions by the set deadline. It also instructed the government to adopt Shariah-compliant methods for future borrowings from any sources.