Apr 18 - Apr 24, 2005 
ISSUE # 16 

There could not be two views that Islam prohibits Riba. However, the real issue is transformation of centuries old interest-based into a system which is fully compliant with Shariah. The initial resistance against implementation of Riba-free system was based on the fears that it did not capable of offering an efficient and workable infrastructure. However, the global experience as well as Pakistan's initiative has proved that Islamic financial system is fully capable of replacing the conventional banking system.



The Chinese Prime Minister Wen Jiabao, accompanied by a 70-member delegation including his cabinet ministers, high ranking senior officials and leading businessmen arrived on a 4-day visit to Pakistan, last week. Substantiated by strong friendly ties between the two countries, the visit ushered in a new height of coordination to further strengthen the historic relationship of the friendly nations.

Mounting inflationary pressures mainly ignited by international oil price spiral and of course expansion in credit to private sector altogether hitting hard the purchase power of the middle income groups during second half of the current financial year 2004-05. According to an estimate, the rising inflation entered into double-digit zone during March 2005, said financial analysts. The Consumer Price Index (CPI) attained the double-digit level of 10.25 percent last month for the first time during the whole year.