Provides an overview of the December 1999 judgment of the Supreme Court of Pakistan, which struck down interest as unconstitutional. Assesses the impact of this ruling for Pakistan specifically and Islamic law as a whole, and the Court's order that interest be eliminated from the country as soon as possible.
Outlines the basis of Shar'ia, equitable social justice, and explains Sharia's prohibition of exploitative and unethical practices, of which the prohibition of interest is most famous. The ethical nature of Shar'ia underpins the business of Islamic finance, yet ethics, along with legal rules, are subject to interpretation. Examines the exact role the ethics of Shar'ia play in Islamic finance, the risk for those who bank in the sector, and the change that Islamic law has undergone through the practice of Islamic finance in today's global market.
The development of Islamic banking principles in Pakistan has been an ongoing process since gaining independence in 1947, a process greater accelerated in recent years. This book provides an account of the historical developments of law in Pakistan as it pertains to shari`a and Islamic finance.