The author has posed the important question "What is Riba?"

He has placed before his audience many definitions of Riba as prevalent in the Muslim countries.

In a talk to the leading economists and observers in the office of the International Association of Islamic Banks, Mr. Jafarey, replying to his own question, has said that liie final answer on Riba on which the entire Ummah agrees was hardly available. "My intuition of feeling is that Riba is a purely religious injunction meant for Muslims. It is based on Quranic injunction and is so important tha t taking of Riba has been described in the Quran as 'war with Allah'." Many Ulema have written from time to time on this issue. So much so that iJie charging of rent from pilgrims at the time of Haj is also described as Riba. But in view of the situation prevailing at this time, there is a trend among Muslims to circumvent the Riba though they condemn it on the authority of the Holy Quran. Mr. Jafarey said that it must be remembered that the word used in Quran is Al-riba. That was a specific practice in Arabia and not a general trend amongst the people. However, no account is available as to what this practice was? Does it mean interest? On this fundamental issue there is difference of opinion among the scholars.That is why the question arises what is it that the Holy Quran has banned?

Mr. Jafarey said that there was no evidence of interest during the time of the Holy Prophet (PBUH). If this view is correct, can Riba be equated with Bank interest? he asked.

Another view is that according to the Quran the Riba or bank interest were the same. However, it may be noted that while the holy Quran prohibits taking of interest, it does not prohibit giving of interest. This led to a lucrative business by the Christians and Jews. Even the Caliph at one time during Abbasid period took money on interest as it was not prohibited by the Holy Quran. In the days of Jahilya people who could not return the loan on due date, were treated more or less as slaves. It should be noted that the Ayats relating to Riba were revealed in the last days of the Prophet's life. It is high time that the Ummah should finally decide about bank interests etc. So that the question of Riba is finally solved. Mr. Jafarey recommended three monologues on Riba which should be read with interest. These are:

1. Political Islam by Nazih Aubi, Reader in Politics in Exeter University.
2. National Bank of Pakistan Report on Riba and interest prepared at the time of Late Mr. Jamil Nishtar.
3. Article on Interest on Production loans.

There was an oil boom in parts of the Arab world in the seventies. It may be noted that the rats of interest was fixed by the Governments and not the market.

Nishtar in his report said that exorbitant increment whereby the capital was doubled several-fold was prohibited by the Holy Quran. Al-Riba was the Riba that prevailed during the days of Jahilya. It is obvious that the final decision on the interest should be taken by Ijma and Ijtihad. Mr.Jafarey said one had to keep with the times. It may be mentioned here that bank interest was not prevalent during the time of the Holy Prophet (PBUH). Therefore Ijma and Ijtihad, was now the crying need of the hour. The Ayats of the Holy Quran and the Sayings of the Holy Prophet (PBUH) should be put together as the Ummah could not take decision on Al-Riba without these guiding principles. It may also be remembered that change has taken place in the society and time has progressed. Therefore the definition of Riba should be finalised in the Parliament. It must be noted that the system of government in different countries within the fold of Islamic Ummah is varied. It is not possible to impose one's will on all countries, Mr. Jafarey asserted. In Pakistan one had to confine to the elected representatives of the people. It is true that elections held to the Central legislature were not ideal but they were the only means available to us. Therefore, one has to choose the second best, if not the best method. The excerpts from the National bank report and an earlier article by Mr. Jafarey, to which reference has been made, are given below:

NATIONAL BANK OF PAKISTAN

In the report of the National Bank of Pakistan it should be noted that Riba is usually translated in Urdu as 'sud' which is of Persian origin and literally means profit, its antonym being Zian. Sud is not synonymous with Quranic term Riba but is synonymous with Arabic word Ribah. In fact, any attempt to translate the Quranic term Riba in any language is not only futile but is also a source of much confused thinking on the subject.

The report draws the following conclusions:

1. (a) The clear words of the Qur'an, "Consume not riba with continued redoubling.
 (b) The chronological order in which the verses prohibiting riba were revealed.
 (c) The historical traditions concerning the nature of riba going back to the eminent tabu'i commentators   of the Quran.
 (d) The hadith-material describing the historical context in which the verse a (remit what is left of riba)" was revealed, - all this evidence establishes the following definition of riba.

Riba is an exorbitant increment whereby the capital sum is doubled several-fold, against a fixed extension of the term of payment of the debt.

2. The prohibition oi'this Riba by means of law is a religious necessity.

3. The Quran has declared that the opposite of Riba is sadaqah which is by no means a form of beggary. In view of this it is the moral duty of the Muslims to build up a system of economy based on sadaqah i.e. cooperation and mutual consideration. Co-operative effort of the Government and the people is needed to achieve this goal.

4. The basic moral idea underlying the Quranic prohibition of riba has been given a wider extension and application in the hadith literature, but the contradiction and inconsistencies in the Riba-hadith and the evolutionary trend in this literature leading to an ever increasing rigidity vitiate its authenticity and authority.

5. The passion for sadaqah inculcated by the Quran and the way in which the hadith-material supports and elaborates this idea lead to the conclusion that all immoral forms of financial and economic transactions fall under the category of what Ibn Qayyim calls "concealed Riba ". But it is necessary to maintain a distinction between the Quranic Riba , which in fact is the legal riba, and tho term Riba as used in late times and by late writers.

6. The system of economy which the Quran requires us to establish, boing bnaed on the spirit of cooperation, the further nourishment and development of this spirit in the right manner and the reconstruction of society in accordance therewith would make bank-interest and the present banking system quite superfluous which is just what the spirit of the Quran and the Sunnah requires of us.

7. As long as our society has not been reconstructed on the Islamic pattern outlined above, it would be suicidal for the economic welfare of the society and the financial system of the country and would also be contrary to the spirit and intentions of the Quran and Sunnah to abolish bank-interest.

8. In accordance with the principal of or "graduation"  and or "the easing of the way," it would be necessary to enact legislation against such grave social inequities as feudalism and hoarding, etc. before proceeding to abolish bank-interest.

9. It would be necessary for every citizen of Pakistan to work arduously and with an untiring zeal to reach the desirable goal of reducing bank-interest to the zero point in other words to eliminate it completely. For this end, it would be necesisary to increase the volume of real wealth and credit capital in the country to such a point that an equality or near-equality comes to exist between the supply and demand of money in credit, and credit becomes very easy. In s uch ideal circumstances the motive for bank-interest, and indeed the profiteering motive may become extinct.

10. The measure adopted by the Government and the collective efforts made by the Muslims in general, alone will bring into existence that Welfare Co-operative Commonwealth which is the only way to establish the economic system of Islam in the present modern conditions.

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*The author is a former Chairman of National Insurance Corporation and State Life Insurance Corporation and frequent contributor on Islamic subjects.