Islamic Finance

Nigerian Muslims are very much aware that Hajj (pilgrimage) is an Islamic obligation. Much of Nigerian Muslims' lives are shaped around the performance of this duty.

The Pakistani government's Islamization of the economy intends to eliminate all financial practices forbidden by

The author, senior vice president of United Bank Limited, addresses the need for certain fundamental changes in a society before it is ready for the adoption of Islamic banking. His particular focus is on Pakistan and its culture, for Pakistan has been moving towards an Islamic system. The author expresses concern that materialism is being served by banks that emphasize the profits to be made in Islamic banking. An outline of the key principles of Capitalism, of Socialism, and of

Banker's Equity Limited (BEL), is a private corporation that is sponsored by the State Bank of Pakistan Banking Council. Its Board of Directors is made up of the Governor of the State Bank, the Chairman of the Pakistan Banking Council, the presidents of the nationalized commercial banks, and other top bankers. The main goal of the company is to act as a catalyst for development in the country's economy. Its focus lies on medium-sized and large projects. BEL's goal to develop the economy mirrors the national government's wish to do the same.

Islamisation is a highly broad process; to discuss it requires a deep knowledge of fiqh, the shari`a ,

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The author devotes the article to a discussion of the implications and consequences of Pakistan's move from an interest-based banking system to an interest-free one. The author relates that the role of interest in modern economics is so central that it requires a degree of creativity to envision what things would be like without any interest at all. Some criticisms of the new system, and especially of a mark-up practice that resembles simple interest and was only hesitatingly approved by the ideological board, are mentioned.

The Pakistani government is under pressure from Islamic groups to eliminate interest from financial and banking sectors of the economy. Pakistan's federal shari`a court has classified interest as riba (usury) and forbidden it.