One common misconception about Shariah Finance is that it is part of the capitalist system, a component, somehow, of free enterprise.
That is completely wrong and promoters of Shariah Finance freely admit it. Sheikh Yusuf al-Qaradawi, the Sunni Muslim world’s most prominent Shariah scholar and ideological mentor to the Muslim Brotherhood, came right out and called for an Islamic system of economics to replace capitalism a few years ago. Less than a year later, then-Iranian President Mahmoud Ahmedinijad made the same call.
Now we have a further indication that Shariah Finance is a form of centralized economics similar to other such systems in other totalitarian ideologies, such as communism and fascism. The Pakistani government has committed to “nurturing” Shariah finance.
Everywhere that Shariah finance appears, there always seems to be some involvement by a regime to promote it. This is true in Pakistan. It is true in Iran and it has even been true in the United Kingdom and the USA.
Federal Minister for Finance Mohammad Ishaq Dar said on Monday the government believed in the supremacy and utility of Islamic finance for inclusive development and socio-economic well-being of the masses. “We are fully committed and determined to nurture the Islamic finance industry on sound foundations”, he said while addressing the inauguration ceremony of second Global Forum on Islamic Finance at Lahore campus of COMSATS Institute of Information and Technology.
“The government is, thus, fully committed to facilitate and nurture development of Islamic finance industry on sound footings through an enabling policy and regulatory environment,” he added.