Towards Islamisation of economy

The founding of Pakistan was on the grounds that Muslims of the region were to again be independent and were to set up a modern state strictly in adherence with Islamic law. Since independence, there has been a struggle to achieve these ends. In July of 1977, the shari`a was declared to be the basis of Pakistani law and eforts were made to move towards compliance with it. The primary change worked towards in economic law is the elimination of interest from the economy. The government seeks to transfer interest-reaping accounts into profit and loss sharing ones. Some Islamic finance tools are mudaraba, musharaka, and Participation Term Certificates. Such certificates serve as alternatives to the debenture arrangement. Rules regarding mudarabas were set up in 1980 and a Registrar of Mudarabas, Religious Board, and a Tribunal for disputes were founded thereafter. The first mudaraba company registered was the Bankers' Equity Limited. Amongst a number of changes on the financial s