Business of Private Interest-Based Loans to be Prohibited in Islamabad Soon

The federal capital will soon be free of private interest-based money lending thanks to recent legislation in the parliament. The Islamabad Capital Territory Prohibition of Interest on Private Loans Bill, 2019, was passed by the joint session of Parliament on Tuesday and will become an Act of Parliament as soon as President Dr. Arif Alvi signs the bill, according to a national daily. The new law will be extended to the Islamabad Capital Territory and will go into effect after the president signs the bill. According to the bill, no lender, either individually or as part of a group, shall lend money or advance loans to any person for the purpose of receiving interest. He/she will not engage in interest-based transactions in the Islamabad Capital Territory, and any infractions will result in imprisonment for up to ten years, but no less than three years, with a fine of up to Rs. 1 million. The law also states that anyone who abuses a borrower or debtor and pressures them to repay the loan or interest faces up to five years in prison and a fine of up to Rs. 0.5 million.