Title:
“Riba” in Relation to Loans from Muslims and/or non-Muslims and the Issue of Payment of “Riba”
Article:
The Supreme Court of Pakistan, in
determining the applications and implications of the term “Riba”
asked for assistance of religious scholars and other interested people of the
country. For this purpose, answers to ten questions were sought. The fourth
among these questions was:
Is there any difference between a
Muslim and a non-Muslim in the matter of prohibition of Riba?
Can the prohibition of Riba be
extended to the loans obtained from non-Muslim, or for that matter, Muslim
foreign countries, whose laws and national policies, together with
international monetary laws and policies, are not within the control of the
state of Pakistan?
My Reply
to this question follows:
It is quite clear from the Qur’an
that in an Islamic state no one – whether Muslim or non-Muslim – shall be
allowed to take “Riba”. There
is absolutely no difference in this case between the Muslim and the non-Muslim
citizens of an Islamic state.
Moreover, it should be clearly
understood that the prohibition of Riba by
the State of Pakistan or any other Muslim state shall actually entail
prohibiting individuals (whether Muslims or non-Muslims) as well as institutions
(whether owned by Muslims or non-Muslims), that operate within the jurisdiction
of the state, from taking Riba. It
is quite clear from the related verses of the Qur’an that the real and actual
prohibition applies to taking or devouring Riba. The prohibition of giving Riba, which has been mentioned in some of the narratives
ascribed to the Prophet (pbuh) is actually only the result or corollary of the
prohibition of taking Riba – and
not a real and basic prohibition.
This concept needs to be understood
in a little more detail:
As is clear from various verses of
the Qur’an, the real prohibition of the Shari`ah
applies to taking Riba.
The Qur’an, at even a single instance, has not mentioned the prohibition of
giving Riba. The reason is quite
simple: the real moral crime, the injustice and the exploitation, according to
the Qur’an, lies in taking or devouring Riba
not in giving Riba.
Thus, the basic initial emphasis of the Qur’an and the state of Medinah,
under the leadership of the Prophet (pbuh) was to abolish the practice of
charging Riba, not of giving Riba.
Throughout this time, the Qur’an condemned those who charged Riba,
it admonished them and reminded them of the punishment that they shall be faced
with on the day of judgment for charging Riba,
and then finally it gave them the ultimatum that if they do not restrain from
charging Riba, the Islamic state –
under the leadership of the Prophet (pbuh) – shall declare a war against them
(Al-Baqarah 2: 279). During all
this time, not a single verse admonished those who paid Riba, they were not
threatened with any dire consequences of their act and were never directed by
the Prophet (pbuh) to avoid the payment of Riba.
On the contrary, the Qur’an actually directed the lenders to deal with them in
a soft manner: it directed the lender to give the borrower some time to return
the lender’s principal amount, if he was not in a position to do so
immediately. It further advised them that if it be possible for them, they
should even waive this principal amount as alms and get their rewards for this
generous act in the hereafter.
Later on, when the institution of
charging Riba
was completely abolished and no individual who charged Riba was allowed to operate
in the society, it was then that the Prophet (pbuh) declared that (when the
society is completely cleared from the evil) even those who offer to pay Riba
to secure loans for themselves or who silently accept paying Riba
and do not bring it to the notice of the state authorities and those who are
scribes of and witnesses to the documentations for Riba-based transactions
without bringing such transactions to the notice of the state are accomplices to
the crime and therefore deserve to be punished for their acts.
As is quite clear from the above,
the real sin and crime, according to the Qur’an and the life of the Prophet (pbuh)
lies in taking or charging Riba.
Agreeing to give Riba
becomes a crime when the society is completely cleared from this evil and taking
Riba
is considered a punishable crime at the state level.
In view of the above explanation, it
should be clear that the prohibition of Riba
at the state level should primarily entail:
-
prohibiting its citizens and the institutions operating within the country
from charging “Riba”, from any other
individuals whether residing inside or outside the jurisdiction of the
state, on any financial transactions;
-
prohibiting its citizens and the institutions operating within the country
from charging “Riba”, from any other
institutions whether operating inside or outside the jurisdiction of the
state, on any financial transactions;
-
refraining itself from charging “Riba”
from any individuals whether residing inside or outside the jurisdiction of
the state, on any financial transactions;
-
refraining itself from charging “Riba”
from any institutions whether operating inside or outside the jurisdiction
of the state, on any financial transactions;
-
refraining itself from charging “Riba”
from any other countries on any loans or aids advanced to them;
-
to promulgate and implement laws for the punishment of its citizens and
the institutions operating within the jurisdiction of the state that do not
abide by the above prohibitions;
-
to promulgate and implement laws for the punishment of such of its
citizens and institutions operating within the jurisdiction of the state who
agree to pay “Riba”
to other citizens and institutions operating within the state on any
financial transactions and avoiding to bring such activities in the notice
of the state, by considering such citizens and institutions accomplices to
the crime;
-
to promulgate and implement laws for the punishment of such of its
citizens and institutions operating within the jurisdiction of the state who
act as scribes of or witnesses to a Riba-based
financial contract and avoid to bring such contract in the notice of the
state, by considering such citizens and institutions accomplices to the
crime;
Payment of “Riba” on loans secured
from individuals and institutions operating outside the jurisdiction of the
state cannot be brought under the scope of any legislation passed for the
prohibition of “Riba”
in Pakistan.
The governments of the state of
Pakistan should obviously be advised to do their utmost in securing “Riba” free loans. But as
the saying goes: “beggars cannot be choosers”, if such arrangement is not
possible payment of “Riba”
shall be made and the contracts fulfilled, without effecting any of the above
mentioned points of the proposed prohibition of “Riba” within the state of Pakistan.