Contemporary Issues in Current Account Operations in Pakistani IBs - Sharia Compliant Solution

Sheikh Muhammad Ishtiaq (DHA Suffa University-Karachi,)
Wasie Fasih Butt (Education and Literacy Department-Sindh)
Fahad Ahmed Qureshi (Arizona State University)
Mubeen Butt (Lecturer School of Islamic Economics, Banking & Finance Minhaj University, Lahore, Pakistan)

Global Review of Islamic Economics and Business
Vol 6, No 1 (2018)

Contemporary Sharia scholars have three stances about the Current Account Operations in Pakistani Islamic Banks (IBs) i.e., (i) Ijarah based contract (ii) Wadi’ah based contract, and (iii) Qard based contract. This paper is an attempt to delve into the root causes of the differences of scholars and to find the Sharia-compliant solution acceptable for all. Descriptive as well as applied approaches are used in this paper. Clearing of ambiguity on this issue may result in twofold benefits: from the public point of view, it would satisfy practising Muslims which may result in form of huge deposits in this account (ii) from IBs viewpoint the Current Account is a bonus deposit.