Musharika financing on profit-loss sharing

In the new musharaka finance scheme Pakistan's nationalized banks use, the banks give capital to businesses on profit-and-loss sharing terms. Just a generation ago, the aversion of interest among Muslims was so strong that there was a social stigma attached to its use. The switch during the early 1960s in the name of interest to 'profit' betrays the poor understanding of that age. In earlier stages of Pakistan's history, Muslims had no choice besides the interest-based system. According to the Qur'an, one cannot simultaneously be engaged in interest and be a believer. In 1981, profit-and-loss-sharing accounts were made available. If interest were banned all at once, the result would be economic disorder. Banks must have the expertise to earn profits without interest. In an Islamic system, savings are used for income on a participatory basis. In a mudaraba setup, one party contributes funds to an enterprise while the other contributes skill and effort. Currently, banking part