Seminar on Islamic banking

A seminar on Islamic banking planned by the International Association of Islamic Banks taking place in Islamabad was addressed by the Pakistani President, Mohammad Zia-ul-Haq. He spoke of Pakistan's move to a profit and loss sharing system. For the development of a new, interest-free economic system, a number of institutions sich as the State Bank and the Islamic Ideology Council are working on schemes. The Islamic economic system to be implement is one in which: 1. The sovereignty of Allah and man's position as His viceregent are recognized; 2. Adl and Ahsan are guiding principles; and 3. Zakah is used to cut down on wealth accumulation and to focus money flow towards the needy. The Islamic economic system relies on the adoption of Islamic values in the land. Musharaka, mudaraba , and other Islamic financial tools have been shaped during the Islamisation of the economy. The final aim is to eliminate the practice of riba. Pakistan has taken on the daunting task of Isamizing its