An outline of interest-free economy

Muslim countries are becoming more and more conscious of the need to comply with Islamic law by eliminating interest from their economies. Both jurists and economists are thinking about Islamization. Removing interest from the economic system was discussed at a 1976 conference on Islamic economics in Mecca. The Pakistani president has presented a scheme to end interest in Pakistan. Islamic economics does not consider capital to be a separate factor of production. Profit and interest differ because although interest is preset and fixed, profit is not preset and can be negative. The theoretical basis for interest in the Western system has always been problematic. Islamic banks could have a number of account types, including fixed deposits and current accounts. The central bank will both promote and regulate the banking system. It can also serve as a lender of last resort.