Riba on Provident Fund: Shariat Bench seeks AG’s opinion

ISLAMABAD: The Shariat Appellate Bench of the Supreme Court on Friday issued notice to the attorney general of Pakistan to submit an opinion about the federal government’s appeal of a Federal Shariat Court ruling that interest on the Provident Fund for government employees was un-Islamic and illegal.

The Appellate Bench consisted of Justice Abdul Hameed Dogar, Justice Muhammad Nawaz Abbasi, Justice Mian Shakirullah Jan, Justice Allama Dr Khalid Mahmood and Justice Allama Rashid Ahmed Jullundhari.

The bench adjourned the appeal hearing for an indefinite period when the Sindh advocate general sought more time to submit his reply in the case.

In 1992, the Federal Shariat Court declared that riba (interest) given to the federal government under the rubric of the Provident Fund was un-Islamic. The court also declared that sections 2, 5 and 6 of the Provident Fund Act 1925 were un-Islamic and directed the federal government to repeal these sections. All the provincial governments were also directed to remove these sections for provincial government employees. This landmark judgement was awarded in the Shariat petition of Haji Roshan Din Roshan.

However, the federal government has appealed the decision before the Shariat Appellate Bench of the Supreme Court.

On Friday, the bench took up the case, but adjourned for a date that is to be announced later. However, the bench has asked the attorney general of Pakistan to submit his reply in this case. A considerable deduction is made from the salaries of government employees every month. At the end of their service they are given millions of rupees, including a high interest on the total amount. staff report

Home | National