Further Discussion On Investiment In The So-called Islamic Banks


Dear brother, your answer[1] is not very clear. Firstly if Islamic Banks like Meezan are not fully Islamic then what is the fun of keeping money in them? You say leasing is acceptable and murabahah is not. Then how do we know that our money has been used in leasing only. In one of the TV shows a similar question was asked to Mr Ghamidi. He never commented on it to be half okay and half not. He simply said that no zakah is to be paid as 10% deduction has already been done. Please clarify this point as I placed my amount in this Bank for seven years after listening to Deen-O-Danish on Dunya TV. I want to be absolutely sure about my investments because I have to face Allah Almighty one day. I will be quoting you people on the day of resurrection. Now please tell me whether keeping money in these banks is Halal or not. They don't give fix profit. They claim that they invest in Halal dealings. People like us can't go and investigate them for that. We have to trust somebody when their is hardly any choice left these days.

[1] Reference is towards the following discussion: http://www.al-mawrid.org/pages/questions_english_detail.php?qid=524&cid=385


Each one of us is accountable to the Almighty to perform to the best of his judgment. We make statements on religious issues as best as we understand without claiming that what we have stated is the absolute truth. You have to form your opinion and act accordingly on the basis of what you think is the correct view from the ones that are available.

Mr Ghamidi holds the opinion that murabaha is Islamically undesirable if not completely haram. Incidentally, Mufti Taqi Usmani too is not fully satisfied with it. He believes that murabaha should be resorted to as a last resort.

The fact that murabaha-based returns account for 50% of the revenues of Islamic banks is a very rough estimate I reached when I was doing my PhD in Banking in Islam (1994; University of Wales) and later while interacting with Islamic bankers.

This world is imperfect. It is not likely to become otherwise. If you can't find best solutions, you have to go for less-than-the-best ones.

About the Author

Dr. Khalid Zaheer

Dr. Khalid Zaheer (1958) is currently serving as Vice President Al-Mawrid Institute of Islamic Sciences, Lahore, Pakistan. He is a member of the Executive Committee and also a member of the Board of Governors; Al-Mawrid.

Prior to this, he taught at the Lahore University of Management Sciences and before joining LUMS, he taught at the Institute of Business Administration, University of the Punjab (1986 to 1990) as a Lecturer and later (1994 to 1998) as an Assistant Professor.

He served as an adviser to Crescent Standard Islamic Bank on “Islamic Banking” from July 2005 to June 2006, as Shari’ah Adviser to Atlas Islamic Fund from 2006 to 2007. He was appointed in January 2000 as a member of the task force of the Finance Division of the Government of Pakistan. He was also appointed a non-official member of the Board of Management of Pakistan Bait-ul-Mal in May, 2000; he resigned from the post in September 2000.

He has delivered lectures at the Administrative Staff College, National Institute of Public Administration, and Pakistan Audit and Accounts Training Institute etc. on various Islamic topics. He has delivered lectures also on topics relating to Islamic Studies at Universities of Lampeter, Aberystwyth, Swansea, and Exeter and the Islamic Foundation in Leicester during 1990-1994 in Britain and in various departments and hostels at the Punjab University in Pakistan from 1994 to 1998.

His writing includes his Ph.D. thesis titled, “An Enquiry into the Basic Concept of Banking as Perceived by the Spirit of Islamic Economic Justice” (1994). He authored a paper titled “Religious Tolerance: An Islam Perspective” he is participated as a member of the faculty in the Inter-University Short Executive Program on “Religion: Conflict and Peace?” in Bangkok from July 21 to July 25, 2003. He read his article titled, “Islamic Justification of Indexation in the Modern Financial Markets” in an International Conference of Islamic Economists and Statisticians in Lahore in 1995. He authored an article: “Why Riba al-Fadl is Unacceptable?” His article “Human Rights Law and Islamic Shari’ah: Areas of Compatibility and Conflict” (5000 words) was published in the December 2004 issue of Renaissance, a monthly Islamic journal. He made a presentation on “How Can Muslims Be Friend with Non-Muslims?” at the international Conference on “Common Values between Islam & the West”. He also made presentations on “Significance of Business Ethics” and “What Has Kept Pakistan from Progressing?” He also read a paper “Understanding of Riba: A Critical Analysis.”

He maintains his personal website. He regularly contributes in the monthly religious magazine, “Renaissance”. He has also contributed to Urdu periodicals “Ishraq”, “Tazkir”, and “Su-e-Haram”.

Dr. Khalid Zaheer did his Ph.D. from University of Wales in 1994 in “Banking Islam”. Prior to that he did his M.B.A from University of the Punjab in 1982, B. Com. From University of the Punjab in 1978, Intermediate from Government College Sargodha in 1975, Matriculation from P.A.F. College Sargodha in 1973. He received his religious education through associations with Dr. Israr Ahmed (1978 to 1980), Mawlana AminAhsan Islahi (1980 to 1990), and Mr. Javed Ahmed Ghamdi (1980 to date). He also went through a formal course on Arabic and Islamic learning from Al-Mawrid, an institute of Islamic Sciences, from 1983 to 1984.