Re: Pakistan Supreme Court outlaws interest

[Greg Nowell <GN842@xxxxxxxxxxxxxxxxx>]

This is completely silly.  There are lots of Moslem countries that have no
interest rate.  But there is no Koranic injunction against charging monthly
"administrative fees" on "loan maintenance", and that is what they do.
These fees vary in magnitude according to--guess what--changes in the
interest rate.  -gn.

Mason Clark wrote:

> The following was posted to the sci.econ and uk.religion.islam
> newsgroups.  I'm certain the poster, who asks for comments,
> will have no objection to its distribution to pkt.  The complete
> judgement at the link below is lengthy, and must be of great
> interest to economists (not to mention bankers!).
>
>            Mason Clark
>
> quote:
>
> The highest constitutional court in Pakistan, The Supreme Court, in a
> recent landmark judgement has prohibited the charging of INTEREST on
> any financial transaction in the economy. This prohibition is based
> upon the KORANIC injunction banning interest (Riba'  in Arabic) from
> the economy.
>
> The text of the judgement is available at
>
>     http://www.jamaat.org/news/SCRiba.html
>
> In my opinion the effect of the judgement are likely to of the same
> magnitude, if not bigger, than the October Revolution,and are likely to
> echo in the economies of the Muslim countries, in the near future and
> consequently in the rest of the world. Founded on a religious basis, it
> will precipitate responses much more powerful than those generated by
> Marxist ideaology-- at least in the Muslim world.
>
> The international financial system and with it the whole system of
> commerce and trade shall be effected by it, particularly if the oil
> rich middle eastern countries (which are all muslim) also take steps
> towards an interest free economy.
>
> Comments highly appreciated with a copy to me by email at
> <expaco@xxxxxxxxxx>. Many Thanks in advance
>
> Aurangzeb

--
Gregory P. Nowell
Associate Professor
Department of Political Science, Milne 100
State University of New York
135 Western Ave.
Albany, New York 12222

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