THIS refers to your editorial ‘Memories of Double Shah’ (April 7). Dubious scheme operators of Mansehra and Kashmir have established a vast network of agents in Karachi.
These fraudsters have recruited dozens of local imams in Karachi. These Imams get Rs10,000 salary plus one per cent commission.
Local imams collect funds from locals in the name of Mudarabah and Musharika and give them seven per cent monthly profit (84 per cent per annum). The people think this investment is absolutely ‘halal’ because of the involvement of an imam.
The residents of Shah Faisal Colony, New Town and Korangi have already invested their entire savings worth millions of rupees in these schemes.
Now local mosques of these areas look more like a brokerage house rather than a house of Allah.
The authorities concerned and religious leaders should take appropriate action against these schemes.
SHAHZAIB KHAN Karachi
Profit and loss
I would like to mention that the regulator, the State Bank of Pakistan, while directing banks in Pakistan to accept public deposits on a profit and loss sharing basis, had neither given guidelines to conventional banks about the mechanics of profit and loss calculation and distribution nor the placing mechanism of related pool funds.
The public is at the mercy of conventional banks which make huge profits but do not adequately share the same with depositors.
You need to editorially take the regulator to task for its failings in this regard as a priority.
SHAHID HASSAN Karachi