Pakistan going slow on SC's interest order

[Ulhas Joglekar]

31 December 1999 
Pakistan going slow on SC's interest order
ISLAMABAD: Pakistan's government has moved to calm concerns over a Supreme
Court ruling which declared the charging of interest as un-Islamic and
ordered radical changes to the economy.
The apex court last week ruled interest was forbidden in Islam and directed
the government to take steps to set up an intrest-free economy by June,
2000.
``Consistent with its commitments to tenets of Islamic ideology, the
government of Pakistan is carefully considering the order,'' the government
said in a statement on Wednesday.
The judgment had given a time frame to replace old laws which``by itself is
a sufficient assurance to the people of Pakistan and the rest of the world
that no immediate change has been brought about by the judgment,'' the
statement said. ``There is no cause for concern,'' it added. The day-to-day
working of the economy would ``continue as before.''
The Supreme Court has asked the government to set up a commision in the
Central Bank to set the groundwork for the change. The government said all
banking transanctions, contracts, commitments, investments and obligations
``are completely protected and will remain so until such time that modified
arrangements are worked out.''
``The financial commitments and obligations of the federal government to
foreign governments, financial institutions and other entities are not
affected,'' it said. (AFP)
For reprint rights: Times Syndication Service
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Bennett, Coleman & Co. Ltd. 1999.