{"product_id":"bank-interest-and-islam","title":"BANK INTEREST AND ISLAM","description":"\u003cp\u003eBesides Islam,\u003cspan\u003e \u003c\/span\u003e\u003cem\u003eRiba\u003c\/em\u003e\u003cspan\u003e \u003c\/span\u003eis forbidden in every religion and philosophy. That is why the Muslims of all times and ages tried to get rid of this menace. However, the introduction of banking system gave rise to the question about the nature of income from the institution; whether this income falls in the domain of Riba? Economists, particularly the majority of religious scholars consider bank interest as\u003cspan\u003e \u003c\/span\u003e\u003cem\u003eRiba\u003c\/em\u003e\u003cspan\u003e \u003c\/span\u003eand as such forbidden.\u003c\/p\u003e\n\u003cp\u003eIt is unfortunate that, on the hypothesis that interest and\u003cspan\u003e \u003c\/span\u003e\u003cem\u003eriba\u003c\/em\u003e\u003cspan\u003e \u003c\/span\u003eare synonymous terms, the real task has been put aside and all efforts have been directed towards introducing alternative methods based on tricks long ago rendered obsolete. The energies and capabilities that should have been spent on important matters are being wasted on trivial things. Had the entire struggle been meant to achieve the objectives that, according to scholars, are laid down by Islam, it has failed miserably.\u003c\/p\u003e\n\u003cp\u003eWhether in the field of economics or other faculties of social studies, words and terminologies and technical intricacies have their own importance—realities are more significant, yet hard. You may give a rose any name you like; it will remain a rose. So it is mere wishful thinking to hope that we can bring about economic and social revolution by changing the name ‘bank interest’ and assigning the same task to\u003cspan\u003e \u003c\/span\u003e\u003cem\u003ebai\u003c\/em\u003e\u003cspan\u003e \u003c\/span\u003e\u003cem\u003emurabaha\u003c\/em\u003e\u003cspan\u003e \u003c\/span\u003e(trade between buyer and seller) or\u003cspan\u003e \u003c\/span\u003e\u003cem\u003eijara\u003c\/em\u003e\u003cspan\u003e \u003c\/span\u003e(rent) or any other Arabic label. The notion of a welfare state is an Islamic concept, but is it not the reality that the welfare states in Europe are making a mockery of Islam in relation to bank interest? Islamic scholars fail to understand how this could be relevant in the context of interest. We have been so deeply engrossed, and still are, in words and terminologies that we have lost sight of reality, and the terminologies remained suspended in the air and failed to have a practical effect. Those who believe in actions and not words have eliminated economic and social inequality by providing a glimpse of Islamic laws despite the presence of interest; the irony is that we are happy with the introduction of the Arabic labels.\u003c\/p\u003e\n\u003cp\u003eIt should have been our focus to make deliberate efforts to exterminate\u003cspan\u003e \u003c\/span\u003e\u003cem\u003eriba\u003c\/em\u003e\u003cspan\u003e \u003c\/span\u003eand promote charities as a substitute in our society to help poor and destitute people. However, this did not happen. Scholars wrongly mistook\u003cspan\u003e \u003c\/span\u003e\u003cem\u003ebai\u003c\/em\u003e\u003cspan\u003e \u003c\/span\u003e(trade) for an antonym of\u003cspan\u003e \u003c\/span\u003e\u003cem\u003eriba\u003cspan\u003e \u003c\/span\u003e\u003c\/em\u003eand started proposing different forms of financing that act just like interest because it was mistaken for a synonym of\u003cspan\u003e \u003c\/span\u003e\u003cem\u003eriba\u003c\/em\u003e.\u003c\/p\u003e\n\u003cp\u003eExtremely pedantic experts, religious scholars and economists alike, continued for decades with their analytical dissection of the definition of\u003cspan\u003e \u003c\/span\u003e\u003cem\u003eriba\u003c\/em\u003e. In Pakistan, the case of riba, which had been shelved for about twelve years, suddenly came to the surface, inviting combatants to lock their horns again in the arena of religious and anti-religious jargon. Not surprisingly, the nation will hear the same repetitive and circular reasoning leading it nowhere, plunging it again into an intellectual vacuum.\u003c\/p\u003e\n\u003cp\u003eThe government authorities, who are conscious of the importance of interest, simply do not know how to tackle these arguments. The result is obvious: stalling the main issue instead of coping with it has been the main tactic of government and financial institutions. Religious scholars, Muslim economists and a few columnists who consider bank interest as\u003cspan\u003e \u003c\/span\u003e\u003cem\u003eriba\u003c\/em\u003e\u003cspan\u003e \u003c\/span\u003ehave invested too much in this view to rethink their theories. This situation demands a daring venture from a non-partisan thinker who could address these conflicting issues of the Muslim world.\u003c\/p\u003e\n\u003cp\u003eSome of the scholars were of the same opinion that commercial interest cannot be categorized under riba. However the approach and reasons put forward by them is not free from errors. For example A renowned scholarly personality in Pakistan is Fazlur Rehman, who, referring to the Holy\u003cspan\u003e \u003c\/span\u003e\u003cem\u003eQur’an\u003c\/em\u003e\u003cspan\u003e \u003c\/span\u003ein support of his argument, says that verse 130 of\u003cspan\u003e \u003c\/span\u003e\u003cem\u003eSurah Aale Imran\u003c\/em\u003e\u003cspan\u003e \u003c\/span\u003ehas a central role in\u003cspan\u003e \u003c\/span\u003e\u003cem\u003eal-riba\u003c\/em\u003e\u003cspan\u003e \u003c\/span\u003eissue, in which doubled and re-doubled, that is, a multiplied increase on a loan is prohibited.  According to him, this is the prohibition of\u003cspan\u003e \u003c\/span\u003e\u003cem\u003eal-riba\u003c\/em\u003e, but since it was linked to a system, the prohibition is general in nature and there is no exception. However, he says, it is incorrect to draw the conclusion that bank interest is also prohibited in a similar way because it is linked to another system at present. Although Rehman claims that his definition is derived from the Holy\u003cspan\u003e \u003c\/span\u003e\u003cem\u003eQur’an\u003c\/em\u003e, if we look carefully at the verse, we will know about one of its characteristics, not about its definition. Perhaps this is why Abul Kalam Azad has translated this verse as: ‘O Muslims don’t fill your stomachs with\u003cspan\u003e \u003c\/span\u003e\u003cem\u003eriba\u003cspan\u003e \u003c\/span\u003e\u003c\/em\u003eearning, in which (real loan money) is doubled and multiplied.’ Such additional sentences are used to explain the seriousness of the issue, and to expose its ugliness. ‘Doubled and re-doubled’ cannot be construed as the cause of prohibition of\u003cspan\u003e \u003c\/span\u003e\u003cem\u003eal-riba\u003c\/em\u003e\u003cspan\u003e \u003c\/span\u003ein the verse in question.\u003c\/p\u003e\n\u003cp\u003eHe, while defining\u003cspan\u003e \u003c\/span\u003e\u003cem\u003eal-riba\u003c\/em\u003e, uses the following words: ‘Riba is an exorbitant increment.’ But what does this ‘exorbitant’ mean?  It is a relative term and no standard is left if we rely on this definition. Moreover, what about the real question of deriving the definition from the Holy\u003cspan\u003e \u003c\/span\u003e\u003cem\u003eQur’an\u003c\/em\u003e? What is the exorbitant limit of\u003cspan\u003e \u003c\/span\u003e\u003cem\u003eal-riba\u003c\/em\u003e\u003cspan\u003e \u003c\/span\u003eset by the Holy\u003cspan\u003e \u003c\/span\u003e\u003cem\u003eQur’an\u003c\/em\u003e? One per cent, 10 per cent or what? In view of these arguments, we say that his definition or interpretation is not only in contradiction with the Holy\u003cspan\u003e \u003c\/span\u003e\u003cem\u003eQur’an\u003c\/em\u003e, but is also unsatisfactory.\u003c\/p\u003e\n\u003cp\u003eAnother scholar’s definition needs to be analysed. This is, in fact, another view, based on negative grounds. This view is held by Syed Yaqoob Shah, once Auditor General of Pakistan. According to this school of thought, in Arab, there was nothing like ‘trade’ or ‘productive loans’ before Islam. The word\u003cspan\u003e \u003c\/span\u003e\u003cem\u003eal-riba\u003c\/em\u003e\u003cspan\u003e \u003c\/span\u003ewas used with meanings that were prevalent among Arabs. This hypothesis has a major significance in our discussion.\u003c\/p\u003e\n\u003cp\u003eTo say that there was no trend of loans for business purposes may be the result of unavailability of historical evidence. On this negative basis, any final definition of\u003cspan\u003e \u003c\/span\u003e\u003cem\u003eal-riba\u003c\/em\u003e\u003cspan\u003e \u003c\/span\u003eis a difficult task. That is why Shah admits this fact and seems to be complaining that our historians and those working on the\u003cspan\u003e \u003c\/span\u003e\u003cem\u003eHadith\u003c\/em\u003e\u003cspan\u003e \u003c\/span\u003edid not compile details on different forms of loan prevalent before Islam, due to which we find it difficult to say with authority what meaning the word\u003cspan\u003e \u003c\/span\u003e\u003cem\u003eal-riba\u003c\/em\u003e\u003cspan\u003e \u003c\/span\u003ehad during the revelation of the Holy\u003cspan\u003e \u003c\/span\u003e\u003cem\u003eQur’an\u003c\/em\u003e. He himself said that our historians have made detailed mention of the period of our Holy Prophet ﷺ. They did not ignore any issue, no matter how small, particularly when it has a linkage with religion. Countless books of\u003cspan\u003e \u003c\/span\u003e\u003cem\u003eHadiths\u003c\/em\u003e\u003cspan\u003e \u003c\/span\u003eand interpretation of the Holy\u003cspan\u003e \u003c\/span\u003e\u003cem\u003eQur’an\u003c\/em\u003e\u003cspan\u003e \u003c\/span\u003eare witness to the fact, but there is no mention of productive loan, even in such voluminous stockpiles.\u003c\/p\u003e\n\u003cp\u003eNow the entire debate revolves, according to Shah, around the uncertainty about whether trade loans were prevalent among Arabs before Islam. On the contrary, religious scholars, Muslim economists and some orientalists produced many historical evidences that trade and productive loans were as prevalent in those days as they are today.\u003c\/p\u003e\n\u003cp\u003eShah’s approach is certainly not based on established facts, and it is generally recognized that laying any foundation negatively is not trustworthy, according to scholars of the relevant field. However, there is another aspect that is very interesting. It is strange enough that Shah considers trade loans as productive and those on agriculture as non-productive loans. We think that these loans (agriculture, industry and art) are as productive as they are in trade sector.\u003c\/p\u003e\n\u003cp\u003eThis is a very weak aspect of his theory through which he wants to detach bank interest from\u003cspan\u003e \u003c\/span\u003e\u003cem\u003eal-riba\u003c\/em\u003e, but its weakness of argument remains a hindrance. Although he has arrived at an accurate conclusion, he could not provide any strong evidence from the Holy\u003cspan\u003e \u003c\/span\u003e\u003cem\u003eQur’an\u003c\/em\u003e\u003cspan\u003e \u003c\/span\u003ein support of his arguments; neither could he introduce any definition of\u003cspan\u003e \u003c\/span\u003e\u003cem\u003eal-riba\u003c\/em\u003e\u003cspan\u003e \u003c\/span\u003ein a positive way. As a result, his entire theory failed to receive acceptance in the literary world, even though he was half correct. The difference between consumption loans and productive loans cannot be proven from the Holy\u003cspan\u003e \u003c\/span\u003e\u003cem\u003eQur’an\u003c\/em\u003e\u003cspan\u003e \u003c\/span\u003eand\u003cspan\u003e \u003c\/span\u003e\u003cem\u003eSunnah\u003c\/em\u003e.\u003c\/p\u003e\n\u003cp\u003eContrary to these scholars’ reasoning, this book takes a different position basing on the context of Qur’an and reached the conclusion that riba is not mere the excess on any loan, rather it is excess on the loans extended to the destitute and needy persons. Bank’s interest is completely different from the Qur’anic riba which is prohibited. It represents a complete paradigm shift from the orthodox and popular view of bank interest. It establishes why bank interest cannot be categorized under riba, which is fervently outlawed and condemned by the Holy Qur’an.\u003c\/p\u003e","brand":"Vanguard Books","offers":[{"title":"Default Title","offer_id":51276138250276,"sku":null,"price":1200.0,"currency_code":"PKR","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0739\/4823\/3764\/files\/BANKINTERESTANDISLAM_REVISITINGTHECLASSICALAPPROACH.jpg?v=1786954628","url":"https:\/\/vanguardbooks.com\/products\/bank-interest-and-islam","provider":"Vanguard Books","version":"1.0","type":"link"}