Prominent Islamic scholar Mufti Muhammad Taqi Usmani has said that depositing money in an Islamic bank and earning profit from it is completely halal.
He explained that this practice aligns with the principles of Islamic finance, where profits are derived through Shariah-compliant investments, ensuring all transactions are free from interest (riba) and unethical practices.
In contrast, earning interest from conventional bank deposits is considered haram (forbidden) in Islam, which has sparked some controversy over his declaration.
Islamic banks in Pakistan have long faced skepticism about their adherence to Shariah principles. Concerns have been raised regarding the robustness of Shariah compliance audits and the effectiveness of external oversight mechanisms.
Some Islamic bankers and Shariah advisors have also expressed doubts about the extent to which these banks genuinely follow Islamic guidelines. These challenges are further complicated by the lack of rigorous external audits and a fully developed legal framework to support Islamic banking in the country.
