PLS Bank Accounts in Pakistan

Q450 :PLS Bank Accounts in Pakistan

A450 : I have not made any judgement on that [ the banking ] system as such. I have answered readers' letters which spoke about certain accounts and transactions. Let me say clearly that I do not have sufficient information about the banking system in Pakistan to make a judgment. What I know is that the government has declared that it is bringing that system into line with Islamic teachings. How far has it gone with its declared objective, I am not in a position to judge. When a reader tells me that he has deposited some savings into a profit and loss sharing account, I give him my opinion that it is permissible to accept any returns on these deposits. What this means is that we accept at face value what an institution like a bank in Pakistan tells us. If that institution tells us that we will have a share of profits and we will bear a share of any loss, then the transaction is permissible. If, however, it transpires that the claims of the bank or the financial institutions are merely made to attract deposits, while the system itself remains the same as the Western type of banking, then that claim should be rejected. Our attitude should be based on two elements which we apply concurrently; trust and reasonable inquiry. We accept on trust the statements by a bank but we should also undertake a reasonable degree of inquiry to determine whether the claims of the bank are correct or not. We do not reject such claims out of hand, nor do we accept them blindly.

Our Dialogue ( Source : Arab News - Jeddah )