Fatwa No : 84475
The Ruling on the Government of Pakistan Taking Interest-Based Loans from the IMF and Using Them in Various Sectors

The Ruling on the Government of Pakistan Taking Interest-Based Loans from the IMF and Using Them in Various Sectors

What do the esteemed Muftis say regarding the following issue:
(1) The government of Pakistan is taking interest-based loans from the IMF and spending them in various sectors such as health, food, and development projects. In this situation, is it permissible for government employees working under these sectors to receive salaries from the government or not?
(2) An offshore company has taken an interest-based loan from a bank and is running its operations using that loan. The company also pays the bank installments from its budget and pays salaries to employees from the same budget. In this situation, is it permissible for employees to work in such a company or not?
(3) And if the mentioned company takes an interest-free loan from the bank, then in that case, is it permissible to work in the company or not?

الجوابُ حامِدا ًو مُصلیِّا ً

(1) It is not permissible for the Government of Pakistan to take an interest-based loan from the IMF and utilize it in various sectors. The government officials involved are sinful due to this action. It is obligatory upon them to repay the loan as soon as possible and free the country and nation from the curse of interest. However, it is permissible and valid for government employees to receive salaries from the government and to continue their employment.
(2,3) Taking an interest-free loan from any conventional (interest-based) bank is permissible and there is no harm in it. However, taking an interest-bearing loan is unlawful and prohibited in Shariah. If the company owners have taken a loan on interest from the bank, then the sin will be upon the owners themselves. Nevertheless, it is permissible and valid for employees to work in such a company and to receive their salaries from it.

مأخَذُ الفَتوی

قال الله تعالى : احل الله البيع وحرم الربوا (سورة البقرة)۔
و في الدر المختار: (و) جاز تعمير كنيسة و (حمل خمر ذمي) بنفسه أو دابته (بأجر) . (6/ 391)۔
و في حاشية ابن عابدين (رد المحتار): (قوله وجاز تعمير كنيسة) قال في الخانية: ولو آجر نفسه ليعمل في الكنيسة ويعمرها لا بأس به لأنه لا معصية في عين العمل اھ (6/ 391)۔