ISLAM PROHIBITS INTEREST
Interest is the price paid for the use of money or credit. Islam religion teachings are very close to nature. Islam prohibits interest rate and promotes Qarz-e-hasna (Give money to the needy people without interest). Interest disturbs the economics of the society. Higher interest rates increase the cost of consumption and less saving. It also damages the confidence between the consumers and producers. Interest rates increase the unemployment in the world. Pakistan budget always showed deficit due to the payment of loans attained with the highest interest rates. The goods purchase by the loans with interest rates increased the cost of production and ultimately failed the economics.
|Keywords: Islamic Economics And Conventional Economics, Riba, Qard, Murabahah|
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