Section 8: Islamization of economy

8. Islamization of economy.—(1) The State shall take steps to ensure that the economic system of Pakistan is constructed on the basis of Islamic economic objectives, principles, and priorities. (2) The Federal Government shall, within thirty days from the commencement of this Act, appoint a Commission consisting of economists, bankers, jurists, ulema, elected representatives and such other persons as it may deem fit and appoint one of them to be its Chairman. (3) The functions of the Commission shall be— (a) to recommend measures and steps, including suitable alternatives, by which the economic system enunciated by Islam could be established ; (b) to recommend the ways, means and strategy for such changes in the economic system of Pakistan so as to achieve the social and economic well being of the people as envisaged by Article 38 of the Constitution ; (c) to undertake the examination of any fiscal law or any law relating to the levy and collection of taxes and fees or banking or insurance law or practice and procedure to determine whether or not these are repugnant to the Shari’ah and to make recommendations to bring such laws, practices and procedure in conformity with the Shari’ah ; and (d) to monitor progress in respect of the Islamization of economy, identifying lapses and bottlenecks if any and suggest alternatives to remove any difficulty. (4) The Commission shall oversee the process of elimination of riba from every sphere of economic activity in the shortest possible time and also recommend such measures to the Government as would ensure the total elimination of riba from the economy. (5) The Commission shall submit its reports on a regular basis and at suitable intervals to the Federal Government which shall place the same before both the Houses of Majlis-e-Shoora (Parliament) and shall also respond to any queries sent to it by the Federal Government in respect of establishment of the Islamic economic order. (6) The Commission shall have the power to conduct its proceedings and regulate its procedure in all respects as it may deem fit. (7) All executive authorities, institutions and local authorities shall act in aid of the Commission. (8) The Ministry of Finance in the Government of Pakistan shall be responsible for the administrative matters relating to the Commission.

Effective date: 1991-01-01

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