ISLAMABAD, May 14: The government has decided to ask the Supreme Court to reverse its judgment, declaring all forms of interest-based banking un-Islamic.

An official told Dawn that the government had decided not to seek extension in time-limit for implementation of the SC judgment, rather it would request the court to reverse its judgment as it was wrongly declared that all forms of existing banking activity was un-Islamic.

The government has engaged prominent scholar Syed Riazul Hasan Gillani and Raza Kazim advocate to argue the case. Raja Akram would represent the United Bank, which has filed a review petition.

The lawyers would have a formal meeting with President Pervez Musharraf on Wednesday to finalize an strategy in this regard. The deadline for the implementation of SC verdict would expire on June 30, 2002.

In 1992, the Federal Shariat Court shook the entire banking industry by holding about four dozens laws enforced in the country un-Islamic.

The Shariat Appellate Bench of Supreme Court on Dec 23, 1999, had upheld the FSC verdict after keeping the government appeals pending for seven years. The court had set the deadline of June 30, 2001, for the implementation of the judgment.

The deadline, however, was extended till June 30, 2002, by the Supreme Court last year.

United Bank Limited has filed an application seeking suspension of the judgment till Dec 31, 2005. Official sources told Dawn that nowhere in the Muslim world, including Saudi Arabia, Iran, there existed any model of interest-free banking.

Last year, seeking extension in the deadline, the then Attorney-General had hinted that if the judgment was not suspended, the doctrine of state necessity might be invoked.

Syed Riazul Hasan Gillani had also been engaged at the time of hearing of appeals, but he could not complete the arguments, as some of the judges had made up their minds and were not ready to give time.