RAWALPINDI, May 25: Renowned scholar and senior adviser to the Islamic Research Institute of the Islamic Development Bank, Saudi Arabia, Dr Mohammad Umar Chapra has stressed the need for implementing Islamic banking and economy system for setting up a true welfare state.

The visiting scholar was delivering a lecture on the topic of ‘Prohibition of Interest in Islam; Does It Make Sense?’ at Al-Mizan Campus of Riphah International University (RIU) on Wednesday.

The lecture was largely attended among others by senior economists, bankers, students and faculty members of the RIU and Islamic International Medical College (IIMC).

Dr Chapra spoke in detail on economic system in Islam which, he said, was based on the welfare of mankind with the emphasis on ethical values.

He was of the view that the prevailing banking system in the world did not solve the problems faced by the masses and augmented exploitation.

Dr Chapra expressed the view that by adopting true Islamic system of economy and banking, a welfare society could be created where people were saved from exploitation and their basic needs were met. Tracing the history of Riba, Dr Chapra said it was one of the tools used for concentration of wealth in a few hands leaving others deprived. He gave examples of Riba-free banking in various Muslim countries and said with more research on the subject they would be able to have a system aimed at the welfare of people on one hand and economic development on the other.

The lecture was followed by a question-answer session.

Later, the RIU vice-chancellor, Dr Anis Ahmad, presented the university crest to the visiting scholar. Principal of the IIMC Lt-Gen (retired) Najam Khan also gave a shield to the guest.

Earlier, Dr Chapra had also delivered a lecture on “Meeting the Global Challenge: The Role of Islamic Economies” at the Institute of Policy Studies, Islamabad on Tuesday.

Japanese Ambassador Nobuaki Tanaka and IPS Chairman Senator Prof Khurshid Ahmed were also present on the occasion.

Dr Chapra said the trend of living beyond one’s means gave rise to inflation and indebtedness of individuals as well as states. Those who consume beyond their means do so at the cost of others who find it difficult to live a decent life.

So we need to ‘inject moral dimension’ if we really want to get rid of unjust distribution of wealth, he added.