Announcement

Collapse
No announcement yet.

Musharraf appeals against Islamic banking

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Musharraf appeals against Islamic banking

    http://www.guardian.co.uk/Archive/Ar...433796,00.html

    NOTE:-Where in this article 'Islamic right-wing' is used, it refers to Islamic groups in Pakistan who have not bought Musharraf's role as the new colonial viceroy

    Pakistan's military government is desperately trying to stall attempts by the religious right wing to Islamise the country's economy by banning all interest payments, writes Rory McCarthy

    After years of legal wrangles, Pakistan's supreme court last year ordered the government to switch to an Islamic banking system. At the last minute Islamabad convinced the court to delay the decision for another year. Now again a rushed appeal has begun to halt the switch to an interest-free economy due at the start of next month.
    Hardline clerics, angered by General Pervez Musharraf's alliance with America and his recent concessions over Kashmir, are trying to use the case to drum up opposition to the regime.

    In appeal hearings before the sharia court, which governs Islamic laws in Pakistan, government lawyers argued yesterday the new law would severely harm the country's already weak and debt-ridden economy.

    "The transformation of the entire financial system is not practicable," government advocate Raza Kazim told the court. "If attempted there is a high degree of risk and likelihood of permanent damage to the already fragile economy of the country."

    As a compromise it appears the state will offer to set up a parallel Islamic banking system for religious-minded customers. The idea of mandatory interest-free banking was first introduced more than a decade ago by rightwing ideologues under the rule of Nawaz Sharif, the then prime minister. They wanted to stop banks charging interest from borrowers and paying interest to depositors.

    Western governments, which have lent billions of dollars in aid to Pakistan over the 1990s, convinced Mr Sharif to drop the idea. But when he returned to power in 1997 he again began legal proceedings to reform the economy, hoping a ban on interest would mean he too could avoid paying interest on millions of dollars in international business loans.

    Most other Muslim countries which have introduced Islamic banking systems have found other ways to offer interest payments. Economic analysts in Pakistan fear an interest-free economy would make it hard for the country to attract much-needed foreign investment or to secure further loans from international lenders.

    In Pakistan the case has become a key element in a new campaign of opposition against Gen Musharraf, led by a growing body of rightwing clerics, frustrated militant fighters and even Islamist retired army officers. For the past 20 years Pakistan has encouraged these militants and co-opted Islamist elements into its political system. Now they are beginning to turn against the state that supported them.

    Since September 11 Gen Musharraf has allied himself clearly with America in the war against his former allies, the Taliban. In the last month he has promised to halt militant infiltration into Kashmir, angering a powerful force in society which believes the decade-long guerrilla war against the Indian army is a legitimate "freedom struggle".

    This opposition movement appears to be encouraging other rightwing elements in the country. Earlier this month there were brawls at the supreme court after religious hardliners who support the interest-free economy law complained about the judges and lawyers hearing the case. There have been dozens of rallies to show support for the Kashmir cause and several militant leaders have defied government bans to appear in public.

    This week a prisoner convicted of blasphemy was gunned down in prison in Lahore by a sectarian extremist while he waited for an appeal hearing to begin.

    The religious right wing, so long courted by the Pakistani state, is fast becoming its greatest threat.
    Source: Guardian

    comment: so yet again dictator goes against the wishes of the people what a surprise well not really!


    #2
    We, the people of Pakistan dont have any objections to this dictators problems... As for the system, you should realize that the international market works in a way that if we just eliimnate interest in Pakistani banking, the system wouldnt work... Any economics student can explain better to you... However, there is nothing wrong if we consider ourselves the parnters of the bank in their profit and loss and then we are liable to part of the profit they make... These are just desperate attempts by some pro-extremist radicals who are desperate to find flaws in Musharrafs otherwise excellent tenure in power...

    Comment


      #3
      Originally posted by Saif1924:


      comment: so yet again dictator goes against the wishes of the people what a surprise well not really!

      The matter is in the Supreme Court and will be decided by it, don't just blindly blame Musharraf. The actual objection of the govt. is that the interest (riba) based economy can't just be eliminated with the wave of a magic wand, so I believe the court will order that a parallel system of Islamic banking be established. The govt. has assured the court that it will do its utmost to provide training and facilitation for the setting up of Islamic banking. Infact, this govt. is the first one that has granted a license to an Islamic bank Meezan Bank that has been set up (in Karachi).

      Also, just recently Pakistan held an international conference of Islamic scholars in its endeavours to establish an Islamic system. I think Pakistan's State Bank governor inaugurated or participated in that conference, and the conference was organized by Pakistan' State Bank (not sure about this)

      Don't forget that no Islamic country, not even Iran or Saudi Arabia has interest-free economy. Malaysia is running a parallel Islamic banking system with the regular interest-based system. So, don't just expect Pakistan to implement interest-free system with a wink of the eye, it will take time and will also depend on whether the Pakistani people will invest heavily in the Islamic system or just stick to the interest based system. There are many other complex issues involving economics, and there's also the varying opinions of different schools of thoughts and sects in Islam about Islamic banking. Its not that easy pal, so cool the rhetoric.

      Mush has done everything in Pak's interest so far.

      [This message has been edited by sallu123 (edited June 15, 2002).]
      "When one bright intellect meets another bright intellect, the light increases and the Way becomes clear." - Rumi

      Comment


        #4
        Nope. Musharraf has been doing what he thinks is in PAkistan's interest. He is wrong in what he thinks is good for Pakistan. He is still thinking like a sergeant with a strategy - not as a general, much less as statesman. Therein lies the problem. His actions have helped hold up the pride of the Pakistani people but with no real long term utility. Because each episode of pride has led to swift shame. He is lying and getting caught too much.

        Comment


          #5
          arjun shouldnt you be worried about ur own leader rather than ours... The last thing we need is an indian telling us what is good or what is bad for us...

          read that article on time on vajpayee... i heard he sleeps off during important government meetings... heh

          Comment


            #6
            Spock wrote:

            i heard he sleeps off during important government meetings... heh

            ************************************************** *

            He has our permission to sleep as long as the country's reserves go up unlike Pakistan who inspite of being awake can not even match India's foreign reserves or diplomatic relation.

            Comment


              #7
              Come on, now you guys are saying its ok for a leader to sleep during important meetings... And yes, its ok for him to sleep when millions in india do not have anything to eat... shame on you

              Comment


                #8
                Originally posted by francis2k:
                Spock wrote:

                i heard he sleeps off during important government meetings... heh

                ************************************************** *

                He has our permission to sleep as long as the country's reserves go up unlike Pakistan who inspite of being awake can not even match India's foreign reserves or diplomatic relation.
                With half a billion beggars and AIDS capital of the world you sure need a PM who snores during important meetings.

                Comment


                  #9
                  Spock

                  quote
                  "we the people don't have a problem with dictator"

                  well i am from pakistan and from the people i meet they want islam and the islamic system which includes the islamic economic system which focuses on distribution rather than production which the capitalist system focuses on.

                  I don;t belive you represent the entire pakistan population because if you survey the people they don't even like musharraff basiclly the honeymoon period os over by introducing tax on medicine and gas he has put the poor in more worse position then before where people are punished for being ill. as an example if i mention musharraffs name in lahore or peshawar and even in some quarters of islamabad i would probably get people lining up to insult him.

                  The international economic system which is capitalist has little impact on pakistan economics as an example the forign investment is less than half a billion. If the international community decides to withdraw investment then pakistan can simply refuse to pay the 36 billion debt they owe imf/world bank. Therby saving billions per year compared to 500million in forign investments.

                  This is simply one idea of many tactics a politically sharp government could take and musharraff is not sharp because he simply follows orders and we all know where those orders come from.

                  Comment


                    #10
                    Originally posted by ak47:
                    Spock

                    quote
                    "we the people don't have a problem with dictator"

                    well i am from pakistan and from the people i meet they want islam and the islamic system which includes the islamic economic system which focuses on distribution rather than production which the capitalist system focuses on.

                    I don;t belive you represent the entire pakistan population because if you survey the people they don't even like musharraff basiclly the honeymoon period os over by introducing tax on medicine and gas he has put the poor in more worse position then before where people are punished for being ill. as an example if i mention musharraffs name in lahore or peshawar and even in some quarters of islamabad i would probably get people lining up to insult him.

                    The international economic system which is capitalist has little impact on pakistan economics as an example the forign investment is less than half a billion. If the international community decides to withdraw investment then pakistan can simply refuse to pay the 36 billion debt they owe imf/world bank. Therby saving billions per year compared to 500million in forign investments.

                    This is simply one idea of many tactics a politically sharp government could take and musharraff is not sharp because he simply follows orders and we all know where those orders come from.
                    ak47, then why the hell do frontline islamic parties fail to get more than 2 or 3 votes in the National Assembly? The people of Pakistan are never behind Islamic radicals... I dont know what type of people you have been meeting... The government would have no problem blocking interests off banks, but its the people that are going to stop investing money in banks...



                    [This message has been edited by Spock (edited June 16, 2002).]

                    Comment


                      #11
                      Spock

                      Every politician corrupt or not uses islam to get into power ask yourself why is that.
                      You will find that every person in pakistan supports islam and people from nawaz sharif to bhutto to musharraff will use islam when election time appears once elections over the islamic flag is hidden in there desks.

                      Your words islamic radical which is really modern code word for terrorist like george bushs words. The islamic parties don't get into power becase they don't know how they going to run a country with a islamic system. So therfore you must study is the problem with these parties or is it with islam. And from your studying the reality and islam you will come to the conclusion that it is these parties who have nothign to offer but slogans.

                      If that is the case then you either you abdanon islam anbd implement the corrupted capitalist system whcih is currently taking pakistan into debt trap similar to argentina or you work with a group or party that offers the correct working system that will make pakistan a leading nation not a slave nation that takes orders.

                      Comment


                        #12
                        well, who do you suggest should lead us then? Osama bin ladin? Hes the only one left since youve ruled out the islamic parties in pakistan... btw, the ppl in Pakistan only want economic prosperity not hate and bloodshed, thats the only thing lacking right now... there are many nations in the world that are going towards prosperity, and we can follow them...

                        Comment


                          #13
                          Source Jang.com.pk

                          Just to prove this stupid thread is wrong...

                          'Govt to promote Islamic banking'


                          ISLAMABAD: The finance minister in his budget speech reiterated the government's intention to promote Islamic banking in the country. The minister's reiteration is interestingly contrary to government's plea taken before the Supreme Court of Pakistan that in the present circumstances it is impossible for the government to abolish Riba.

                          The SC Shariat Bench is currently hearing a UBL appeal, seeking review of the Court's verdict on Riba announced in 1992. The minister said during the current financial year the government had, in line with its policy commitments announced last year, taken a number of measures to promote Islamic banking activities in the country. He said a framework for the establishment of new Islamic banks in the country was announced by the State Bank of Pakistan and first licence for an Islamic Bank in the country was given to Al-Meezan Investment Bank, which had already begun functioning.

                          The existing banks, he said, were at various stages of starting their own subsidiaries or branches to undertake operations on the basis of principles of Islamic finance. The minister added that the House Building Finance Corporation Act had been amended as directed by the Supreme Court and HBFC had recommenced its operations in line with Shariah compatible mode of financing.

                          He said a high-level delegation was sent to Egypt, Saudi Arabia and Malaysia to learn from their experience of Islamic banking. Based on the practices adopted by these countries, the government believes that a parallel evolutionary approach would be a proper course to follow.

                          "Let me reiterate the intention of the government to promote Islamic banking in the country while keeping in view its linkages with the global economy and existing commitments to local and foreign investors," the minister said.

                          Comment


                            #14
                            Spock

                            i don't think this is a stupid thread i think it is important issue related to pakistan.

                            As for being wrong all i can say actions speak louder than words. We will see if the dicatorship implements islamic banking or it is hot air and just slogans to keep population appeased for the time being.

                            Comment


                              #15
                              ak, so youre also a mushy hater, big deal... Its been 50 years and the system hasnt been implemented, why blame just him for this?

                              Comment

                              Working...
                              X