Hafiz Naeem Urges Government to Eliminate Interest-Based Banking System in Pakistan

Jamaat-e-Islami (JI) chief Hafiz Naeem ur Rehman has called on the Pakistani government to take decisive action against the country’s interest-based financial framework, asserting that the administration has shown little to no seriousness in implementing clear constitutional and judicial directives concerning the abolition of riba (interest).

Speaking at a press conference held in Karachi on Monday, Hafiz Naeem highlighted how a massive portion of the federal budget is being swallowed by debt servicing obligations, further stressing that despite repeated court rulings, the government has failed to initiate any meaningful transition away from interest-based banking.

“The government claims it wants to abolish interest, but the opposite is happening. Instead of eliminating this system, it is being expanded,” he stated.

Budget Offers No Relief to Ordinary Citizens

Turning his attention to the recently announced federal budget, Hafiz Naeem delivered a scathing critique, arguing that the budget provides virtually no relief to the general public and will only add further financial pressure on ordinary Pakistanis. He drew sharp attention to a glaring disparity in salary revisions, pointing out that government employees were granted a mere seven percent salary increase, while elected lawmakers walked away with a staggering 400 percent raise — a contrast he described as deeply unjust and disconnected from the economic realities faced by common citizens.

Debt Servicing Burden Crossing Rs8 Trillion

Hafiz Naeem warned that debt servicing payments are projected to surpass Rs8 trillion, placing an enormous and unsustainable burden on both the national economy and Pakistani taxpayers. He argued that every upward revision in interest rates translates directly into heavier costs across the economy, ultimately hitting the public the hardest.

The JI chief pointed out a troubling contradiction: while the banking sector continues to report growing profitability, the economic conditions of ordinary Pakistanis are worsening — a situation he described as a systemic failure driven by an unjust financial model.

Minority Parliamentary Members Also Oppose Riba

Referencing recent parliamentary debates, Hafiz Naeem noted that even members of parliament from minority communities had raised their voices against the interest-based system, describing riba as both religiously prohibited and socially harmful — a rare moment of cross-community consensus that, in his view, the government has chosen to ignore.

Taxation System Under Fire

Beyond the banking debate, Hafiz Naeem also launched a pointed critique at Pakistan’s taxation structure, noting that electricity bills are already burdened with multiple layers of taxes and surcharges that drain household incomes. He further questioned the performance of the Federal Board of Revenue (FBR), demanding greater transparency from the government regarding how tax revenues are being collected and spent.

Constitutional Deadline Looming

It is worth noting that the 26th Constitutional Amendment has already provided formal constitutional backing for the elimination of riba in Pakistan, with a legally binding deadline of January 1, 2028, set for both state and private institutions to complete the transition. Hafiz Naeem’s latest statements come amid growing concerns that the government is unlikely to meet this deadline given its current trajectory.