close
Friday March 29, 2024

Bill introduced in KP Assembly to discourage interest on private loans

By Nisar Mahmood
August 13, 2016

PESHAWAR: In a bid to bring an end to usury, the Khyber Pakhtunkhwa Prohibition of Interest on Private Loans Bill, 2016 was introduced in the Khyber Pakhtunkhwa Assembly on Friday.

Fakhre Azam of Pakistan People’s Party (PPP), Sultan Muhammad Khan of Qaumi Watan Party (QWP) and Mehmood Jan of Pakistan Tehreek-e-Insaf (PTI) introduced the bill, which was supported by almost all members in the House.

The bill is aimed at eradicating the menace of interest on private loans common in the society. It was presented in the House for consideration, discussion and suggestion by the members before adoption as law.

The bill suggested that no money lender either individually or in group of persons shall lend money or advance to any person for the purpose of receiving interest thereon nor shall carry on an interest-based transaction in the province; whatever contravenes the provisions of sub-section (1) shall be punished with imprisonment of up to 10 years but not less than three years and shall also be liable to fine not exceeding Rs1 million.

Opposition leader Maulana Lutfur Rehman appreciated the movers and Speaker Asad Qaiser for his role in introducing the legislation.He said the 1973 Constitution was a complete document for introduction of Shariah in the country and there should be implementation of laws in light of the draft prepared by noted Islamic scholar Mufti Taqi Usmani about bringing an end to interest-based transactions.

Pakistan Muslim League-Nawaz (PML-N) parliamentary leader Sardar Aurangzeb Nalotha also appreciated the speaker and movers of the bill and assured his party’s support for the legislation.

Awami National Party (ANP) parliamentary leader Sardar Hussain Babak said it was a good initiative against the menace of usury which was destroying the very fabric of the society.He said the interest-based business of billions of rupees was going on in different shapes and under various names. He suggested that interest-based transactions in public sector should be stopped gradually by enacting laws.

Senior Minister Inayatullah Khan said there was no provision of laws repugnant to Shariah as per the 1973 Constitution and the Islamic Ideology Council was formed for the purpose of identifying laws that were not in accordance with Islamic injunctions.

Minister for Public Health Engineering Shah Farman said the bill would be passed and finalised with consultation and by accommodating the suggestions of opposition.He said besides punishment for those lending money on interest the arbitrator and those striking a deal between the lenders and borrowers would also be punished.

Speaker Asad Qaiser said many affected parties had contacted him and complained of exploitation at the hands of money lenders. He said that in one case a man who had borrowed Rs400,000 was forced to pay Rs24,00,000  while in another case a vehicle costing Rs800,000 was sold for Rs5 million.

The House unanimously passed a resolution presented by Saeed Gul of Jamaat-e-Islami and signed by members from different parties including Sardar Hussain Babak, Mehmood Jan, Fazal Shakoor, Noor Salim Khan, Shah Hussain, Fakhre Azam, Bakht Baidar, Zarin Gul, Shah Farman, Munawwar Khan, Zarin Zia and Nighat Orakzai and asking the federal government to enact laws to bring an end to interest-based businesses.