SBP working on legislation to do away with interest-based system, NA told

ISLAMABAD: Parliamentary Secretary on Finance Zain Qureshi informed the National Assembly that the State Bank of Pakistan (SBP) was working on legislation to do away with interest-based economic system in the country.

Speaking during the question-hour Monday, Zain Qureshi said he could not tell certainly as to when the interest-based system would come to an end but the State Bank was not only taking the issue seriously but had also issued strict guidelines in this connection.

Maulana Jamaluddin wanted to ask the government as to how long it would take to end ‘Riba’ in the country. However, Maulana Abdul Akbar Chitrali said the State Bank was the main hurdle in interest-free banking in the country. He said he was the first to bring the Prohibition of Interest Bill and that the Speaker also constituted a sub-committee of house but so far no meeting had been convened. On that, the Speaker directed the persons concerned to make arrangements for holding meeting of the sub- committee. He pointed out that recently the National Assembly passed a private members bill for prohibition of private business on interest. The opposition benches during the question-hour failed in its attempt to force adjournment of proceedings due to lack of quorum. The PML-N member Rana Tanveer Hussain pointed out lack of quorum but on counting, the House was found in order. To another question, he said the government is transferring funds to provinces timely and no outstanding amount is pending in this regard. To a question during question-hour, Parliamentary Secretary for Finance Division Zain Qureshi said funds are transferred to provinces on 17th and on the last working day of every month. Replying to another question, Qureshi said debt to GDP ratio is expected to be 87 percent by the end of current fiscal year and the government is vigorously working to bring down that ratio to around 81 percent in next three years. He said the government has achieved considerable success in rationalising expenditure, broadening of the tax base and restructuring of public sector enterprises. To a question, he said the vehicles seized by Customs, having tempered chassis are sold to government and semi-government departments only on nominal prices. He said these vehicles in no case can be sold to any person in individual capacity. The National Assembly adopted the resolution to extend the Federal Medical Teaching Institute Ordinance 2020 for a further period of 120 days with effect from 13th of this month. Besides, Income Tax (Amendment) Ordinance 2021 and PAF Air War College Institute Ordinance 2021 were laid before the House. The mid-year budget review report FY 2020-21 was also presented in the National Assembly. Four reports of standing committees concerned of the National Assembly on various bills were presented in the House. These bills include: “The Islamabad Capital Territory Senior Citizens Bill, 2020”, “The Domestic Violence (Prevention and Protection) Bill, 2019”, “The Pakistan Arms (Amendment) Bill, 2020” and “COVID-19 (Prevention of Hoarding) Bill.