The purpose of writing this book is to allay some of the misgivings which presently engage the attention of those who have serious reservations about the success of the non-interest banking system and also to suggest some modifications in the existing procedures followed in Pakistan so as to bring the system nearer to the Shariah parameters. If I have succeeded in classifying some of the basic and essential characteristics of non-interest banking system and if the misgivings of those who have reservations about the new system are set at rest and, above all, if the modicications suggested in the system obtain acceptance of Shari'ah, bankers and the clients, the objective of this book would be deemed to have been achieved.
This book is, therefore, divided into four parts, First part deals with question of riba in generat, mentioning some misgivings about Riba and the rationale for its prohibition. Second part explains the system in vogue, shor-comings therein from Shari'ah point of view and the procedures which, if followed, may bring the system nearer to Shariah parameters and the third part touches upon some criticisms of and apprehensions about the system as practised in Pakistan. Finally, the problems and prospects of the system are discussed at the end.
Abdul Jabbar Khan was born on 19th Septembe, 1925. After having done his B.Com, in 1947, from Hailey College of Commerce, Lahore, of the Punjab University, he joined the first batch of the State Bank of Pakistan's officers training scheme in 1948. After having completed his training with the Imperial Bank of India, he joined the National Bank of Pakistan in 1949.
During the course of this stay at the National Bank of Pakistan he was seconded to the Industrial Development Bank of Pakistan from February, 1963, to February, 1973. His last position at the Industrial Development Bank of Pakistan was that of a Deputy Managing Director. He was appointed a Member of the Pakistan Banking Council, from January, 1977, to March, 1978. He was Member Finance at the Board of Industrial Management from March, 1978, to November, 1978. He was President of the Habib Bank Limited from November, 1978, to November, 1984, and that of the National Bank of Pakistan from November, 1984, to August, 1988.
His contribution in the switch-over from interest to non-interest modes of operation in the banking industry has been substantial. Having been a member of the Panel of Economists and Bakers constituted by the Council of Islamic Ideology in 1977, for the Elimination of interest, President of the two largest commercial banks of the country for about ten years 1978-88 and Chairman of the Working Group set up by the late Permanent commission on Islamisation of Economy, in 1988, the author is perhaps more qualified than many to write on the subject of this monograph.
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