Riba, Interest, and the Constitution of the Islamic Republic of Pakistan

By Muhammad Rizwan-ul-Haque

Founding Chairman, Dawood Family Takaful | CEO of an Investment Bank | Director of a Trust

Originally published: May 8, 2019

Introduction

The Constitution of the Islamic Republic of Pakistan clearly states that no law may be enacted if it is repugnant to the Quran and Sunnah. In light of this constitutional mandate, it becomes essential to reflect on whether Pakistan has truly operated in the right direction during the past four to five decades, particularly with respect to Riba (interest).

This discussion draws attention to relevant constitutional provisions to create awareness and encourage an honest assessment of our legislative and economic trajectory.

Constitutional Framework

The Constitution explicitly empowers both citizens and courts to challenge any law that contradicts Islamic injunctions. This provision reflects the foundational intent of Pakistan as an Islamic state, where governance is meant to align with divine guidance.

Powers of the Federal Shariat Court

Article 203D of the Constitution grants the Federal Shariat Court authority to examine laws, either on its own motion or through petitions filed by citizens or governments, to determine whether they are repugnant to the injunctions of Islam as laid down in the Quran and Sunnah.

This provision not only empowers the judiciary but also places responsibility upon citizens to actively safeguard Islamic principles within the legal framework.

The Pending Petition on Riba

It is deeply concerning that the petition regarding Riba has remained pending since 1999, over two decades without a final verdict. Hearings are repeatedly adjourned, often occurring only a few times a year, without meaningful resolution.

This prolonged delay raises serious questions about collective will. Despite calling Pakistan an Islamic Republic and establishing Islamic councils and Islamic banking institutions, we continue to operate within an interest-based economic system. Superficial reforms, cosmetic changes, or document-based models of “Islamic finance” cannot resolve deep-rooted economic issues.

Relying on international loans, restructuring old debts, or maintaining the status quo merely entrenches the country further into a debt trap. Without aligning our economic system with the true spirit of Islamic teachings, genuine reform remains unattainable.

Responsibility of the Legislature

Beyond the judiciary, the Constitution places a clear obligation on Parliament to ensure that both new and existing laws conform to the injunctions of Islam. Article 227 explicitly states that no law shall be enacted that contradicts the Quran and Sunnah, and all existing laws must be brought into conformity.

Unfortunately, legislative priorities often appear driven by short-term political gains rather than long-term moral and economic reform.

Islamic Provisions in the Constitution

Articles 227–231 provide a comprehensive Islamic framework intended to guide governance and lawmaking. While institutions such as the Council of Islamic Ideology exist, either a lack of capacity or a reluctance to confront systemic violations has limited their effectiveness.

If these provisions were implemented sincerely; both in letter and spirit, they could lead to meaningful transformation and help Pakistan function as a truly Islamic society.

Why Have We Lagged Behind?

One fundamental reason for this stagnation is the absence of objective Quranic education alongside modern sciences from an early age. Had this balance been achieved, it could have shaped stronger moral character and social responsibility.

Today, Quran and Sunnah are often dismissed as outdated or labeled as dogmatic by intellectual circles. At the same time, some religious scholars, whether due to ignorance or vested interests, hesitate to advocate for systems genuinely rooted in Islamic principles.

Ironically, the Constitution itself fully supports governance based on Islamic injunctions.

Path to Societal Transformation

The Quran and Sunnah offer clear guidance capable of addressing modern economic, social, and political challenges. The real barrier is not the absence of solutions but a deficiency in faith (imaan) and conviction to implement them.

Allah SWT reminds us in Surah Aal-e-Imran:

“Do they seek a religion other than that of Allah, while all that is in the heavens and the earth submits to Him, willingly or unwillingly, and to Him they shall be returned?” (3:83)

“Whoever seeks a religion other than Islam, it will never be accepted from him, and in the Hereafter he will be among the losers.” (3:85)

Conclusion

Pakistan possesses both constitutional authority and divine guidance to reform its economic and legal systems. What is required is the courage and sincerity to move beyond superficial measures and align governance with the principles of equality, justice, and accountability taught by Islam.