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Financial system based on the lending of money

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Reference no: EM131860959

In M. Aslam Khaki v. Syed Muhammed Hashim, the Supreme Court of Pakistan held that a financial system based on the lending of money for interest is unjust and contrary to Islamic law. Among the policy arguments discussed, the court noted that equity investments are a better model for a healthy economy than debt financing, since lenders and borrowers would therefore share profit and losses. Do you agree with the court? Why or why not?

Reference no: EM131860959

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