Senate’s Standing Committee has announced the prohibition of interest on private loans in Islamabad. A Bill seeking approval has been passed in regards to this decision.
This decision was considered at Old PIPS Hall, Parliament Lodges in Islamabad during a meeting of the committee.
The Islamabad Capital Territory Prohibition of Interests on Private Loans, 2017- introduced by Senator Sirajul Haq was discussed and the Bill was deemed approved to be set forward to the Senate for final approval.
Reportedly, the document is a request for the complete ban on interest-based lending by individual and group of people. Accordingly, clause 3 of the Bill reads:
No money lander either individually or in a group of persons shall lend money for any purpose or advance loan to any person for the purpose of receiving interest thereon nor shall carry on an interest-based transaction in the Islamabad Capital Territory.
Whoever contravenes the provision of the sub-section (i) shall be punished with imprisonment of either description which may extend to 10 years but shall not be less than three years and shall also be liable to fine not exceeding one million rupees.
Any individual who intentionally and willfully abet, engages, assist or aid the money lender in lending money in contravention of the sub-section of Section 3 will be punished accordingly.
Those who molest a borrower or lender can serve up to 5 years in prison with a fine of Rs. 500,000 to pay back a loan/debt or interest on such loans.
What do you think about the Senate’s Standing Committee’s decision?
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