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Reimagining Pakistan’s Financial Towards a Riba Free System
Organized by: The Revival
Event Type: Roundtable Conference – Two Sessions
Objective: Presenting practical, Shariah-compliant alternatives to Pakistan’s riba-based financial model.
🎙 Executive Summary
The Revival hosted a two-part Roundtable Conference gathering distinguished Islamic economists, scholars, and practitioners to tackle the deeply rooted issue of riba (interest) in Pakistan’s financial system. The discussion focused not just on critique—but on constructive, scalable alternatives grounded in Islamic principles, with real-world applicability from both community and state-level perspectives.
Central Question: Can Pakistan transition from a debt-based, inflationary economy to a just, interest-free system based on Zakat, real assets, and equity financing?
Key Themes:
Disparity between Islamic finance in theory and practice
Grassroots models for community-based microfinancing
Macro-scale policy solutions: Full-reserve banking, Zakat-led welfare, precious metals, and Bitcoin
Implementation frameworks and legal hurdles
The moral imperative: Ending the “war against Allah and His Messenger” (Quran 2:279)
Roundtable Session 1 l Riba Free Financial System – Models Challenges Solutions Highlights
00:00 – Introduction
06:13 – Purpose of the Conference – Mudassir Rashid
20:37 – Designing an Alternative Financial System – Dr. Atiq ur Rehman
44:30 – Gold & Silver Currency: Challenges Today – Dr. Adeel Anwar
01:02:01 – Bitcoin: Most Sunnah Money? – Asif Sheraz
01:19:26 – Problems with Islamic Banking & Real Solutions – Dr. Mohammad Ayub
01:53:02 – Full-Reserve Banking & Zakat Integration – Qanit Khalilullah
02:36:30 – Afghanistan’s Islamic Finance Experience – Syed Yunus Qadri
03:06:13 – Can We Implement a True Alternative? – Orya Maqbool Jan
03:13:28 – Critiquing the Mufti Taqi Usmani Model – Sheikh Abdul Allaam Zaidi
Roundtable Session 2 l Riba Free Financial System – Models Challenges Solutions Highlights
00:00 – Introduction
02:30 – Community-Based Microfinancing through Waqf – Dr. Fahim Khan
A grassroots approach using mosque-centered waqf (endowment) models. Sadqah and community funds could be pooled to build income-generating assets and provide interest-free microloans.
“Why wait for government action when we can start in our mosques?”
⚠ Challenge: Lack of organizational initiative and community engagement.
52:26 – Islamic Venture Capital & Risk Sharing Models – Dr. Atiq ur Rehman
Stressed equity-based financing over debt. Advocated for risk-sharing partnerships (Mudarabah, Musharakah) to fund innovation, SMEs, and startups.
“Entrepreneurship, not debt, should drive the Islamic economy.”
1:10:00 – Full Reserve Banking & Zakat-Based Fiscal Model – Qanit Khalilullah
Reinforced the incompatibility of fractional reserve banking with Islamic finance. Advocated state-backed currency, strict money supply control, and zakat as a redistributive tax policy.
“Zakat is not charity. It’s a systemic tool to end poverty and eliminate riba.”
02:12:08 – What True Islamic Banking Should Look Like – Dr. Mohammad Ayub
Explained why current Islamic banks often replicate conventional tools with cosmetic Shariah labels. Urged a full reboot of principles, governance, and contracts.
“We need Islamic finance in spirit, not just in form.”
02:54:40 – Linking Gold, Silver, and Bitcoin to Islamic Monetary Justice – Asif Sheraz
Demonstrated how inflation-free, asset-backed currencies like gold, silver, and even Bitcoin align with the Sunnah and can reduce exploitation in monetary systems.
“Sound money means honest money.”
03:18:15 – Tamweeli Model for Practical Implementation – Syed Yunus Qadri
Proposed the “Tamweeli” (real-financing) model, combining physical asset backing, community involvement, and decentralized governance—tested informally in parts of Afghanistan.
“If we can test it under conflict conditions, we can build it in Pakistan too.”
📜 Historical Context & Legal Roadblocks
A Vision Interrupted
Quaid-e-Azam envisioned an economy free from exploitation and rooted in Islamic values:
“…this Western economic system has created insufferable problems for humanity…” – Jinnah, 1948
Legal Efforts Over the Years
1966–1977: Islamic finance enters national discourse; CII begins work.
1981–1991: Federal Shariat Court rules riba unconstitutional; but exemptions and appeals delay enforcement.
2022: Latest ruling calls for riba elimination by 2028, but vague definitions threaten true implementation.
🔍 Key Insights
💰 90% of money in circulation is created by private banks, not the State Bank—through interest-bearing loans.
📉 Fractional reserve banking is inherently inflationary and unjust under Shariah.
🕋 Zakat, when systematized, can replace indirect taxation and fund public welfare.
🕌 Waqf-based microfinance offers viable, localized models to fight poverty without interest.
🚀 What’s Next?
This conference was not just an intellectual exercise—it was a blueprint. The time for half-measures is over. Pakistan must:
Define riba unambiguously in law and policy
Invest in education and legal frameworks for equity-based finance
Empower mosques, communities, and public institutions to trial new models
Initiate parallel financial institutions operating on full Islamic principles
📢 Join The Revival in our mission to build Pakistan’s financial future—rooted in justice, transparency, and Islamic integrity.
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