Difference between halal and haram is impossible to figure out with the physical standards, says Islamic finance expert
Muzaffarabad (IoK News): A renowned Kashmiri scholar and expert in Islamic finance Dr Humayun Abbas Dar, while addressing a seminar here in the University of Azad Jammu and Kashmir, said that the difference between halal and haram was impossible to figure out with the physical standards.
“For example, the difference in relationship with and without marriages is impossible to explore with the biological standards, however, the marital relationship is admired in Islam, whereas, the extramarital relationship is strictly prohibited and denied,” he further explained.
In Islam, Islamic banking is permissible and conventional banking is not
Dr Dar also mentioned that the difference between Islamic and Commercial Bank was unable to be traced by using usual economic measures. However, he emphasised that the Islamic banking was permissible and conventional banking was not.
On June 24th, Dr Dar was invited to address the seminar. He is the Director General of Cambridge Institute of Islamic Finance. He was invited by the Kashmir Institute of Economics and Department of Islamic Economy and Banking, UAJK.
The seminar was titled “The Difference between Islamic and Commercial Banks: A Reality or Illusion”.
Dr Dar who was the guest speaker- explained with examples that the difference in relationship with and without marriages was impossible to explore with the biological standards, however, the marital relationship was admired in Islam, whereas, the extramarital relationship was strictly prohibited and denied.
The difference between Islamic and Commercial Bank is unable to be traced by using usual economic measures, however, the Islamic banking is permissible and conventional banking is not, he added.
Usually a slight difference of procedures makes the thing halal and Haram.
He went on to delineate “usually a slight difference of procedures makes the thing halal and Haram.”
“For example, if a chicken slaughtered while reciting Takbeer would be considered as halal where is the same chicken slaughtered with the same knife without reciting Takbeer would be considered as Haram. This slight difference of procedures actually makes a huge difference in the long run.”
Islamic banks deal with trade based modes of finance
The major difference between operations of Islamic and Commercial Banks comes from the fact that the Islamic Banks deal with the trade-based modes of Finance whereas the commercial Banks deal only in the debt instruments.
Islamic financing involves real-time economic activity
Therefore the Islamic financing involves real-time economic activity, whereas commercial Banks do not, and this small difference of procedures makes a real difference in the Long run.
Islamic banks shown ability to survive in global financial crisis
For example, the Islamic Banks were able to survive the Global Financial Crisis without any serious consequence.
The seminar was addressed by other leading academicians. Addressing the seminars, Dr. Syed Nisar Hussain Hamdani, the pioneer and first chairman of Department of Islamic Economy and Banking said that the Islamic banking would become the dominant banking system if the share of Islamic banking exceeds 50% in the total banking system.
So it’s we who will be deciding the fate of Islamic banking system. The Deputy Chief Manager of State Bank of Pakistan elaborated the measures taken by State Bank of Pakistan for promotion of Islamic Banking and Finance.
Mr. Abu-Bakr Sadique, lecturer, international Islamic University explained that the conventional Banks transfer all of the risk to the customer , and on the other hand Islamic Banks retain the risk with them.
In the Islamic Shariah, the share in profit is permissible only if the investor affords the risk of investment.
Therefore this difference makes one of the banking systems permissible and the other as prohibited.
The director Kashmir Institute of economics and head Department of Islamic Economy and Banking Dr. Atiq ur Rehman paid vote of thanks to all the listeners and especially to the Honorable guest who visited the campus on a short notice.
The event was arranged in the Central Auditorium of King Abdullah Campus, a state of the art hall with seating capacity of 1000 audiences. The auditorium and other buildings in the campus were donated by the Kingdom of Saudi Arabia via it’s Saudi Fund for Development (SFD).
The seminar was the first event in the newly built auditorium. It was attended by Dean Faculty of Health and Medical Sciences Dr. Bashir ur Rehman Kanth, Deputy Chief Manager of State Bank of Pakistan Muzaffarabad Branch Mr. Ghufran ud Din, renowned economist Dr. Sayyed Nisar Hussain Hamani, Lecturer International Islamic University Mr. abubakar Siddique, representatives of different Islamic Banks in Muzaffarabad the , students of various colleges in Muzaffarabad, representatives of civil society and the students and faculty of various departments of the University of Azad Jammu and Kashmir.
Dr. Humayun Dar is the Director General of Cambridge Institute of Islamic Finance. Previously he was Director General of Islamic Research and training Institute, a constituent unit of the Islamic Development Bank. Dr. Humayun is the pioneer of Global Islamic Finance report, a yearly publication on Islamic Finance. Dr. Dar is also a pioneer of the Global Islamic Finance Award. This is most prestigious award in Islamic Finance and so far many Heads of Muslim countries including Malaysian Premier H.E. Mr. Abdullah Ahmed Albadawi, the President of Kazakhstan H.E Noor Sultan Nazarbiove, President of South Africa H.E. Matamela Cyril Ramaphosa, President of Djibouti, Bosnia and Herzegovina, and President of Indonesia have been decorated with this award. The awards in the other categories were awarded to over 5,000 people related to Islamic banking industry and the awardees include prominent Islamic Scholar Mufti Taqi Usmani.