Jan 2028 deadline set to end Riba, launch interest-free banking

The newly-passed 26th Constitutional Amendment Bill in Pakistan has set a deadline of January 1, 2028, to eliminate interest-based banking, known as Riba. This decision was made to align with Islamic principles and create an interest-free economic system. The Federal Shariat Court also emphasized the importance of eliminating Riba, stating that it goes against Islamic teachings. The State Bank of Pakistan has approved the establishment of a digital Islamic bank to comply with the court’s ruling. The government is working with stakeholders to implement these changes and transition to a Shariah-compliant banking system.