A THEORY was introduced some 50 years ago by Islamic scholars to convert conventional banking and finance through the process of documentation and by pegging transactions to ‘interest rates’.

This theory with trial and error has shown limitations and now has gone obsolete for two reasons — (1) it does not fulfil the goals of socioeconomic justice and, (2) most importantly, it continues to use the haram factor ‘interest’ in transactions. It thus cannot be Islamic.

During the last four or five decades, the aforesaid model has been successful primarily because there is no difference between conventional and Islamic banking systems.

That is why it has got a good response and both depositors and borrowers feel content. Although it is clear that real economic objectives of Islam are not being met and ‘interest rates’ are extensively used in Islamic finance transactions, the ulema are not willing to accept this reality. The madressahs are offering courses on this man-made theory. The graduates are getting educated on a Riba-based concept (and yet call it Islamic), and are getting employed in tainted institutions, and ulema and professionals are travelling and attending conferences, which are not based on Shariah principles.

Until the 16th century, the Roman Catholic Church also enjoyed a similar elite status. Martin Luther disputed the claim that freedom from God’s punishment for sin could be purchased with money, which resulted in the rise of Protestantism.

We do not need Protestants in Islam, but we need to come close in humility to promote and implement the real message of Quran and Sunnah and not something which is based on a haram factor.

Rizwan-ul Haque

Karachi

Published in Dawn September 22nd, 2016