Government Sets 2028 Deadline to End Interest-Based Banking

Government Sets 2028 Deadline to End Interest-Based Banking

The government has set January 1, 2028, as the deadline to end interest-based banking in Pakistan. Parliament passed the 26th Constitutional Amendment Bill, 2024, which enforces this deadline. Jamiat Ulema-e-Islam-Fazl (JUI-F), led by Maulana Fazl-ur-Rehman, pushed the government to include this change.

Also Read: BankIslami Redefines Pakistan’s Financial Landscape with Riba-free Banking for All

The amendment directly updates clause (f) of Article 38 in the Constitution. The original clause aimed to “eliminate Riba as early as possible.” The new version clearly requires the government to end Riba (interest) by 2028.

In 2022, the Federal Shariat Court had ordered the government to implement an interest-free banking system within five years. The government has now committed to aligning the banking system with Islamic principles by this new deadline.

To Top