For those who declare Islamic Banking Halal
Islamic banking is purely halal banking and certified by mufityan deen so no questions about there authenticity and halaal
Islamic banking vs conventional banking: It is more about the Process
It’s sad to see people having such a negative opinion about Islamic Banking just because they are unable to see a physical difference in the transaction. Remember that a steak made of Halal cow meat and a Haram dead cow meat looks the same once cooked. But it’s the crux/intention/context/process behind the steak that makes it Halal or Haram.
The Two Basic Sides of Banking Transactions
About the Process – there is a fine line. For instance, a conventional bank provides financing to its clients by giving them interest-based loans whereas an Islamic bank provides financing to its client based on profit-based financing such as Murabaha, Ijarah, Salam, Istisna etc.
Let us discover:
Car on Installments Case Study
Profit and loss is equally shared in Islamic banking
What makes it halaal or haram is the “Contract”, wordings are important,
Concepts and instruments are Islamic. The issue is about their application. Usually, Islamic banks are applying them for their own profit.
Being a finance professional had come across a scenario in a listed company where the bank was sharing a profit under the Musharika agreement but when the company registered a loss bank asked to change the formula.
Islamic Banking is Haram
A lame remark often encountered by those opting for Islamic banking:
As mufti has endorsed it so even if it ain’t 100% Islamic you won’t share the blame (gunnah).
Islamic Banking is the same as Conventional Banking
Whereas to some people Islamic or conventional banking makes not a dime of a difference – but people say the sin will be on MUFTI Sahab and not you so Islamic banking in Pakistan basically becomes sugar-coated banking. The difference is they call markup and stuff as “RENT” by which you feel and consider it’s not Riba. Javed Ahmed Ghamdi also shares the same thoughts about renting for the capital cost borne by the bank in our Car Ijarah example. Some people who opt for Islamic Banking products because the extra amount they pay on late repayment is Donated to Charity (Sadqa) whereas in the conventional bank it becomes income of the bank. But the trouble is when you get advert statements like
Interest = insha’Allah munaffah.
Argument 2: Also, back to the popular car lease case study.
It’s a million times better than conventional banking or is it worse?
Not 100% Halal but Better is Islamic Banking Pakistan
Then is it just the change of name with more or less the same non-Islamic financial system? There is an ocean of difference between Islamic and conventional banking. But that difference is more on the soul and logic side of a transaction rather than the facade or front of it. Islamic banks receive bank deposits from all types of individuals and companies. The fact is that normal people don’t understand the basics of Islamic financing and/or the fundamental line of thinking which leads to illogical and ill-informed opinions in society. I would say you rather speak to a few people who are actually knowledgeable in this field who can help and advise.
Well in Islamic banking treating credit cards as debit cards is a good approach. Spend what you have, and avail facilities at the same 0 percent interest rate. Secondly, Ijarah or Diminishing Musharikah is a totally fine model of Financing not only authorized by Mufti’s or Allamas but yet authorized by State Bank and AAOFI (International Institution for Islamic Financial matters) so if your state authorized some Islamic Banking then God forbid if it’s wrong then sin is not on you. There is a Persian saying…
Understand what KIBOR is?
The Case of IBOR or IIBOR: KIBOR in Islamic Banking
Mufti Taqi Usmani is Authority on Finance
Hoarding of Dollars
As so it is extrapolated, it wasn’t just about food rather about hoarding in general that would trigger panic in the society at the lead to a situation where there is a scarcity of that commodity. The hadith was about hoarding in times of need and dollar hoarding is causing damage to the country right now. Buying a currency or a stock in hope of gain is speculation business without any actual economic activity dealing in any financial instrument by just following the trends to gain some short-term benefit is not admissible.
Who said this hadith is not admissible?
We need to come out of individualism. You want investments, do it in halal income funds. In the long run, the currency will follow interest rate differential. Again, Molana sb understands this but certainly not any attention-seeking dullard. People just having read Farkhanda Noor, having ZERO knowledge of the global financial system and even ZERO knowledge of religion and its logic had been praising Atif Mian Qadiyani for his expertise might not digest Mufti Taki Usmani. Not realizing, where, Mufti Taki Usmani is the main member of the Islamic council in the whole world. Anyways, liberals had to find a fault, if Mufti Sb stayed quiet, they would have said Economic Advisory Counsel for Pakistan doesn’t care and when he has spoken they have a problem with that.
Mufti Taqi Usmani proposed the Islamic banking system
The elite business class, bankers all the way down to bond traders have been hoarding foreign currency for quite some time now which causes heavy inflation. The lack of it makes it a commodity thereby exploiting and increasing its value by the hoarders. He simply released a fatwa in which he states that wealth hoarding is tantamount to treason. Mufti Taqi Usmani Sb said about hoarding food and brought an analogy towards hoarding money. There’s absolutely nothing wrong with what he said. There are a saying and authentic quote of Imam Abu Yousuf (R) about hoarding money too. Thus, this Hadith is not only restricted to hoarding food but anything that’s is in shortage and used against people/nations to earn profit which includes money too.
“…That is because they say, “Trade is [just] like interest.” But Allah has permitted trade and has forbidden interest…” — Quran 2:275
Also, you don’t need to be an expert in Islamic injunctions and economics to see what’s happening here. It’s a surface-level problem that the artificial demand for foreign exchange is a strong variable in rupee devaluation which is triggering inflation that would eventually impact the prices of imported goods. Hoarding to hedge risk in such a scenario is treasonous under any ethical framework. Let me break it down, dollar accumulation shall trigger further devaluation which shall result in some sort of import ban or default hence no basic food like oil, and no jobs. It’s DAMAGING YOUR COUNTRY! Simple! even if mufti sahib doesn’t say anything, use some sense and stop making money at the cost of the overall economy.