Islamic banking and its socio-economic aspects -- I

An Islamic Renaissance has occurred over the last 30 years as Muslim countries have increased in size and clout. Pakistan was formed to let people live an Islamic way of life. At the founding of the State Bank of Pakistan, Quaid-e-Azam mentioned the need for interest-free banking. Islamization has not fared well in Pakistan, however. The non-Muslim world showed greater respect to Muslim nations after the oil boom of the 1970s. Changes like Pakistan's political developments in 1977 and Iran's Islamic Revolution have prompted examination of the Islamic economic system. The Qur'an and the sunna emphasize justice; social justice is the aim of an Islamic economy. All schools of fiqh understand riba to stand for all types of interest. An Islamic approach to life results in happiness and success in both this world and the next. Interest and business are not alike, for interest consists of a preset rate of return and is applied to all markets and parties regardless of their contribut