Fatwa No : 85283
Ruling on Employment in the Stocks Department of the State Bank

Ruling on Employment in the Stocks Department of the State Bank

Is it permissible to work in the “Stocks Department” of the State Bank of Pakistan? Please answer in the light of the Qur’an and Hadith. There is a department in the State Bank of Pakistan where statisticians are employed. Their task is to analyze various types of numerical data received from different banks to assess which banks are performing well and which are not. Since all banks operate under the supervision of the State Bank and are required to follow its policies — including institutions like Meezan Bank — this department also conducts various types of research involving banks as well as general economic issues. The employees in this department are directly employed by the State Bank of Pakistan, and their salaries are also paid by it. Kindly clarify whether working in such a position at the State Bank of Pakistan is permissible according to Shariah. Additionally, is it true that Meezan Bank, which is said to operate under the supervision of Mufti Taqi Usmani, is completely free from interest (riba)?

الجوابُ حامِدا ًو مُصلیِّا ً

It should be noted that if the questioner knows that his work in the Stocks Department of the State Bank involves any form of assistance or support for interest-based (riba) activities, then such employment is absolutely unlawful (haram) in Islam. As mentioned in a hadith: "The Messenger of Allah ﷺ cursed the one who consumes interest, the one who gives it, the one who records it, and the two witnesses to it, and he said: ‘They are all equal (in sin).’" (Sahih Muslim, 2/27) Hence, any job that involves assisting or facilitating interest-based transactions in any way is strictly prohibited, and the income earned through such employment is also haram. However, employment in a bank that has no direct connection with interest-based dealings — meaning the person neither records interest, nor witnesses it, nor participates in any way in such transactions — has been a matter of difference among scholars (ulama): First opinion: Such employment is also impermissible, even if the work is unrelated to interest, because the salary paid to employees comes from the collective funds of the bank, which include interest-based earnings. Therefore, they consider it impermissible. Second opinion: Employment in positions not directly linked to interest is permissible, since the bank’s total funds are mixed — they include lawful (halal) deposits such as customers’ savings, the bank’s own capital, as well as interest-based income. Since the majority of these funds are halal, the salary paid from this mixed pool is not deemed unlawful.
Nevertheless, it is still better and more cautious (ahwat) to avoid such employment altogether.
(3) Although Meezan Bank is comparatively better than conventional banks and operates closer to Shariʿah principles, in practice, some individuals managing the system are not fully versed in Islamic legal rulings. Due to their lack of understanding, errors sometimes occur in applying Islamic contracts and formulas — not because the system itself is inherently flawed, but due to individual mistakes. As a result, certain transactions may become invalid or non-compliant with Shariʿah. Therefore, it is difficult to declare the entire system completely free from riba (interest). However, if an employee is well-versed in Shariʿah principles and ensures that his own dealings with customers are fully compliant with Islamic law, then his work and income will, without doubt, be permissible (halal) according to Shariʿah.