|
|
| Question: The Government of Pakistan
and some institutions under its control acquire loans by issuing bonds
and certificates etc. and pay a fixed period wise ‘profit’ to the holders
of such securities. Does this profit fall within the definition of Riba#?
Answer: The answer to this question again lies in the question itself: ‘the Government … and some institutions .. acquire "loans" and pay a "fixed period-wise" "profit"….’ ‘What’s in a name. Riba# called by any other name, even "profit", would still smell as foul, were it not Riba# called.’ The ‘loan’ is there. And a ‘fixed period-wise’ gain is there. Therefore, the gain is obviously Riba#. Although the government is the borrower in such cases and it pays, not receives Riba#, it should not use terms that may lead the recipient of Riba# to think that he or she is receiving profit, and it should also try to gradually come out of the situation where it has no recourse other than borrowing on Riba# to run the country. This obviously requires elimination of corruption and better financial management. |