A Look At The History Of The Usury System: Usury or charging of interest has been a part of the conventional banking system in Pakistan since the country's independence in 1947. The introduction of interest-based banking in Pakistan was a result of the influence of the British colonial system, which had established conventional banking practices in the country. During the early years of Pakistan's independence, the government and the banking industry primarily focused on the development of conventional banking practices, with little attention paid to the development of Islamic finance. As a result, interest-based banking became deeply entrenched in the country's financial system, with the State Bank of Pakistan (SBP) serving as the primary regulator of the industry. In the decades that followed, interest-based banking grew in popularity, with conventional banks dominating the financial landscape. The government's policies and regulations also favored the growth of conve...
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