Jan 2028 deadline set to end Riba, usher in interest-free banking in Pakistan

A new bill in Pakistan has set a deadline to eliminate interest-based banking by January 1, 2028. The government has made changes to the constitution to promote social and economic well-being by eradicating Riba. The Federal Shariat Court has also ruled that interest is forbidden in Islam and should be eliminated from all transactions, including government loans. The State Bank of Pakistan has approved the establishment of Islamic banking operations to comply with the court’s ruling. The government is working with stakeholders to implement these changes, including reviewing laws, raising awareness about Islamic banking, and building capacity in the banking sector.