Fatwa No : 85241
Ruling on Conducting Transactions with Meezan Bank

Ruling on Conducting Transactions with Meezan Bank

The issue is as follows: If we deposit money in Meezan Bank and take its profit, will it be free from interest? The people of Meezan Bank say: “We invest your money in income generated from halal businesses, and then we give you profit. Meezan Bank has a Shariah Supervisory Board consisting of internationally renowned Islamic scholars who oversee and approve all projects and activities of the bank. ” The bank also has its own permanent Shariah Advisor, Dr. Muhammad Imran Usmani, who supervises the bank’s daily Shariah matters.
The members of the bank’s Shariah Board are as follows: Chairman: Justice (Rtd.) Mufti Muhammad Taqi Usmani (Pakistan) Members: Dr. Abdul Sattar Abu Ghuddah (Saudi Arabia), Shaykh Hossam Muhammad Ishaq (Bahrain), Dr. Muhammad Imran Usmani (Pakistan). Respected scholars! We need clarification on this issue both verbally and in written form so that we can keep it as proof. Also, if you have information regarding Bank Islami, please provide that as well—whether its system is free from interest or not. We will be very grateful to you.

الجوابُ حامِدا ًو مُصلیِّا ً

It should be clear that, according to our information, the transactions of Meezan Bank and Bank Islami are carried out under the supervision of a Shariah Advisory Board and in accordance with Shari‘ah principles. Therefore, investment through these two banks is permitted. However, the demand of greater precaution is that if one can personally invest through Murabahah, Mudarabah, Musharakah or Ijarah, then one should avoid investing money in any bank. And if due to necessity one must deal with a bank, then investment through Meezan Bank and Bank Islami is allowed, while dealing with other banks is prohibited. Therefore, the questioner should act accordingly.