Interest-free modern banking is flourishing throughout the world even in the Western countries, as it has become the need of the time. These views were expressed by Meezan Bank Limited Shariah Advisor Dr Mohammad Imran Ansari, while speaking at a seminar on "Islamic Banking," organised by the Management Association of Pakistan (MAP) here on Thursday.
He said the interest-free Islamic Banking was practical and more than 600 banks and financial institutions were operating on Islamic modes in 60 countries throughout the globe.
He said around 37 Muslim countries, including Kuwait, Dubai, Saudi Arabia, Iran, Malaysia and Pakistan, had introduced Islamic banking, where the system was flourishing. Besides, 23 non-Muslim countries, including the United States, United Kingdom, Canada, Switzerland, Sri Lanka, South Africa and Australia also introduced the system. Over 70 branches were providing Islamic banking services to the people countrywide, he said, adding that hundreds of products and instruments had been introduced under the modern Islamic banking.
The system was workable by adopting about 30 modes, including Mudarabah, Musharakah, Ijarah (leasing), Ijrah (hire purchase), Haq-e-Khidmat (service charges), commission, non-interest mutual funds and rental sharing etc, he added.
He said that encouraging and attracting depositors for Halal investments and relieving Muslims from trading in prohibited sectors or activities like opening letter of credit (LC) for alcoholic beverages was a big achievement of Islamic banking.