Interest Based Loans are Contributing to Economic Collapse

The Monetary Policy Information Compendium for March 2014, released by the State Bank on Tuesday 15 April 2014, showed that the domestic debt increased by over Rs1 trillion. The State Bank in its latest report revealed that interest payments on domestic debt have shown an annualized growth of nine per cent during July-January of FY14. This abnormally high growth of domestic debt has substantially increased debt servicing, causing a serious problem for the government. The State Bank report showed that debt stock to GDP in FY-09 was 29.2pc which rose to 41.6pc in FY13. The government paid highest interest to floating debt that is market treasury bills (t-bills). The State Bank reported that the stock of t-bills rose to Rs5.99tr on January 2014. The interest paid on this account was Rs335bn during the seven months of the current fiscal year.

Persistent borrowing of interest based loans by the government to bridge budget deficit has resulted in inflation. A government domestically borrows on interest either from its public, bank and non-bank, or from its central bank, in the case of Pakistan, its State Bank. In recent years, government has resorted to heavy borrowing from the central bank, called "monetizing" the deficit. Because this method always leads to the growth of monetary base and of money supply and ultimately inflation, it is often referred to as just "printing money." In addition, sustained inflation may stem only from a persistent rather than a temporary budget deficit that is eventually financed by printing money, rather than by borrowing from public. In addition, when banks acquire the government debt, government borrowing puts additional pressure on banks' reserves and banks may demand more liquidity from the central bank. When such an extra demand from banks is accommodated and the central bank supplies banks with additional reserves, then in fact monetary base increases, thereby causing a rise in money supply through deposit multiplication, further fueling inflation. Such is the nature of the destructive Capitalist economy.

In stark contrast, the Bayt al-Mal in the Khilafah "Caliphate" will be a financial institution to support the growth of the real economy, including agricultural and industrial development. It is not a parasite that bleeds wealth from the economy through Riba, as the current private banks have become, creating the need for constantly expanding monetary supply, loss in value in the currency and the resultant increase in the prices. Its sole focus will be to develop a vibrant and powerful economy, by using loans to stimulate the local agricultural and industrial sectors. As Hizb ut-Tahrir has adopted in its Introduction to the Constitution, Article 169, "It is completely prohibited to open banks, and the only one permitted will be the State bank, and there are no transactions upon interest. This will be dealt with by a particular department of the Bayt al-Mal."

Walkout over Privatization is Not Enough

The opposition parties on Wednesday 17 April showed their concerns and staged a symbolic walkout from the Senate against the government's decision regarding the privatization of 32 public sector enterprises, including PIA, UBL, HBL, ABL, OGDCL, Pakistan Petroleum Limited (PPL), FESCO, LESCO, NPCC, Heavy Electric Complex (HEC) and TPS Muzafargarh. An opposition Senator, Syeda Sughra Imam said that these public sectors organizations were the flagship of the government and it was difficult to understand the logic behind privatizing such strategic assets.

Sufficient revenues in the state treasury are essential for looking after the affairs of the people and managing the state expenses, such as the armed forces, health and education. However, in Pakistan's current system, privatization secures the economic interests of the colonialists and the small entourage of the traitors in the military and political leadership, whilst depriving the society. The privatization drive includes those properties that Islam has mandated as public property, whose revenue is to be spent on the public, such as gas and electricity. In addition, capitalism's drive for private ownership also usurps interests that should be owned primarily by the state, such as machinery and heavy munitions manufacture, telecommunications, major construction and transport. In the coming Khilafah "Caliphate", inshaaAllah, such enterprises will be primarily to be regarded as state enterprises, with private companies existing within the field, but under state supervision so as to prevent usurping, eclipsing and dominating the state role as occurs in these dark days of capitalism. However, under capitalism, the wealthiest companies in the world are energy, arms, machinery and telecommunications companies, whilst the governments are left with only one resort, suffocating the people with increased taxation, that choke economic activity and add to the people's misery, usurping what private wealth they have left. Taxation on buying food, clothing, shelter, earning, inheritance, administration, health and education, renders them "luxuries" for the "privileged" few, and not guaranteed needs for all.

Dramatic walkouts over these flagrant violations of our Deen is not enough. The need of the time is the abolition of democracy and the return of the Khilafah "Caliphate".

Reduced Generation of Electricity is the Result of Privatization

As of 16 April 2014, unpaid bills of the power companies have again swelled to Rs286 billion during the first three quarters of the current financial year in spite of the heavy increase in the electricity prices for domestic, industrial and commercial consumers. The major sufferers of non-payment of bills by the government are Hubco (Rs60bn) and Kapco (Rs59 bn). Both the companies owe the same amount to their fuel supplier, PSO. The government also owes Rs39.26bn to the Independent Power Producers (IPPs) established under the 2002 power policy. Nishat Power has Rs4.4 bn, Nishat Chunian Power Rs4.1bn, Atlas Power Rs3.9 bn, Hubco Narowal Rs3.6 bn, Liberty Rs5.2bn and Attock Gen Rs5.1bn outstanding against the NTDC. An amount of over Rs78bn is also payable to the public power generation companies -- Gencos. Power producers say the fresh rise in the debt could force many private producers to cut their generation, leading to power cuts of 12-18 hours this summer unless their dues are paid off to enable them to operate their plants at the optimal capacity.

The people suffered immensely last summer, unable to run fans, coolers or air conditioners in soaring temperature. This is even though the total installed capacity was 19,855 MW, dropping to 15,150MW at times of low river flow. This was against a demand that varied between 11,500 MW in the cooler months up to 17,500 MW, during the peak of the hot summer. Yet, there were twelve to eighteen hours without electricity per day in the summer and six hours in the winter, because the private owners were not producing at capacity. All this is the result of making electricity a business and not a right for the people. Only the Khilafah "Caliphate" will end the privatization of the Ummah's public property, so that the public can benefit of it as it has a right to. In Article 140 of its Introduction to the Constitution, Hizb ut Tahrir has adopted, "Every individual from the Ummah has the right to utilise anything from public property, and it is not allowed for the State to permit someone to individually possess or utilise it."

Western Freedoms Wreck Society

The Foreign Office sharply reacted on Thursday 18 April 2014 to Britain's ‘Annual Human Rights and Democracy Report' that marked Pakistan as a country of concern and rejected the criticism as unacceptable. The report said that there was a risk that human rights standards in Pakistan could deteriorate during 2014 and flagged a number of reasons for its concern, including lack of progress on setting up national human rights commission and non-implementation of recommendations agreed with the UN Human Rights Council for preventing violence against minorities. The regime's stance is weak because it accepts Western human rights as a standard and only contests whether Pakistan is following them. However, the ideological Islamic Khilafah "Caliphate" state will challenge the basis for these Western human rights that are being put up as a standard for the world.

America and the West calls for and strives to force Muslims to adopt is "human rights". Many Muslims are attracted to this slogan because of the oppression, torture, and persecution they suffer from their rulers. However, the origin of these Western human rights is the Capitalist ideology's view of the nature of man, this principle conceives man as inherently good and not bad, and that any evil that is committed by man is a result of restricting his will. For this reason, the Capitalists call for freeing mans will in order to express his good nature. From this perspective, the concept of "freedom" emanated and became the most prominent idea in the Capitalist ideology.

However, these "freedoms" have lowered human beings below the level of the animals. Personal freedom has "freed" man from his responsibility to marry woman, secure her maintenance and share in the upbringing of children, leading to armies of unmarried women who are forced to work, as well as raise their children by themselves. Freedom of ownership has "freed" a small band of capitalists to usurp the public property such as oil and gas, allowing them to amass huge fortunes at the expense of society, contributing to an immense concentration of wealth in the hands of a few. Freedom of expression has "freed" tongues to abuse the Prophets (may peace be upon them all) and ridiculing of the entire concept of revelation, to the point that most of the Western people live on this earth, without any serious consideration for the Hereafter. And these are just some of the ills that freedom have unleashed upon Western society, so why must we as Muslims, believers of the true revealed Deen of Islam, accept these standards for ourselves?

In the coming Khilafah "Caliphate" state, the Muslims will present practically a sublime standard for the entire world, as they did for over a thousand years. By implementing the limits that Allah (swt) has prescribed, Islam will again practically preserve the mind, belief, honor, property and race of all humankind.

Pakistan can neither Afford Dictatorship nor Democracy

Leader of Opposition in the National Assembly Syed Khursheed Shah has said, "The current situation in the country does not allow any dictatorship and the judiciary will also not endorse any misadventure" while talking to journalists at the Lahore airport on Sunday 20 April.

Yes, dictatorship is a crime against Islam and Muslims, as it exploits the support of the armed forces to allow a dictator and his entourage to make laws according to the whims, desires and vested interests of men, throwing the commands and prohibitions determined by Allah (swt) and His Messenger (saw) behind their backs. However, democracy is also a crime against Islam and Muslims. It exploits the support of the armed forces to allow another group, that of the assembly, to make laws in exactly the same way.

Islam did not stop at commanding the Abiding (تقيد Taqayad) by Deen of Allah (swt) concerning the daily life of the individuals and the relationships between them. The texts, rather, are explicit in commanding the Ruling by Islam. Allah (swt) addresses His Messenger (saw) saying:

((وَأَنْ احْكُمْ بَيْنَهُمْ بِمَا أَنزَلَ اللَّهُ وَلاَ تَتَّبِعْ أَهْوَاءَهُمْ وَاحْذَرْهُمْ أَنْ يَفْتِنُوكَ عَنْ بَعْضِ مَا أَنزَلَ اللَّهُ إِلَيْكَ ))

"And judge between them by that which Allah has revealed, and follow not their desires, but beware of them lest they seduce you from some part of that which Allah has revealed to you." [Al-Ma'idah 5: 49]

((فَاحْكُمْ بَيْنَهُمْ بِمَا أَنزَلَ اللَّهُ وَلاَ تَتَّبِعْ أَهْوَاءَهُمْ عَمَّا جَاءَكَ مِنْ الْحَقِّ))

"So judge between them by that which Allah has revealed, and follow not their desires away from the truth that has come to you." [Al-Ma'idah 5: 48] Islam did not stop at that and warned those who rule with other than the Shar'. Allah (swt) says:

((وَمَنْ لَمْ يَحْكُمْ بِمَا أَنزَلَ اللَّهُ فَأُوْلَئِكَ هُمْ الْكَافِرُونَ))

"And whoever does not rule with what Allah has brought down, then these are the disbelievers." [Al-Ma'idah 5: 44]

These Aayaat have grave implications for this means that the one who rules with other than what Allah has revealed, if he believed in the Validity (صلاح SalaaH) of what he rules with, and the absence of Validity of the Shar', the he is Kaafir. If he did not believe in its Validity, rather he believed in the Validity of Islam, then he is Disobedient, liable for punishment by Allah (swt). Therefore, Allah (swt) said in other two Aayaat:

(( وَمَنْ لَمْ يَحْكُمْ بِمَا أَنزَلَ اللَّهُ فَأُوْلَئِكَ هُمْ الظَّالِمُونَ))

"And whoever does not rule with what Allah has brought down, then these are the Zaalimoon." [Al-Ma'idah: 45]

((وَمَنْ لَمْ يَحْكُمْ بِمَا أَنزَلَ اللَّهُ فَأُوْلَئِكَ هُمْ الْفَاسِقُونَ ))

"And whoever does not rule with what Allah has brought down, then these are the Fasiqoon." [Al-Ma'idah: 47]

Thus, the one thing that can save this country is the state which establishes law upon the Deen of Allah (swt). In such a state means no law can be implemented unless there is evidence for it in the Quran and the Sunnah. And this can only be practically realized when the Ummah succeeds in depriving both democracy and dictatorship the support of her armed forces and in their place the armed forces gives Nussrah for the return of the Khilafah "Caliphate".

Capitalism must be Abolished to Ensure Food Security

Finance Minister Ishaq Dar, on Saturday 18 April, tasked the Ministry of National Food Security and Research to formulate the national agricultural policy on priority basis for optimum use of natural resources to make the country self-sufficient in food. He said, "A holistic approach is needed for development of the agricultural sector, and the policy should aim towards small farmers to combat poverty in rural areas." Dar stressed that in order to meet the challenges of food insecurity and malnutrition, it was imperative to employ latest technological advancements and innovative techniques to improve the productivity of land. It is worth mentioning that since its creation in 2011, the Ministry of National Food Security and research is functioning without a national policy direction and this government has been in power for a year without finalizing any policy.

Ishaq Dar has exposed the regime's lack of vision for agriculture. For nearly a year the regime has had no policy. And now it limits its view to farming techniques to improve production, when this will do nothing for ending the concentration of wealth in the hands of a few and ensuring the circulation of wealth within the many, which is caused by the capitalist system.

Only the return of the Khilafah "Caliphate" will boost agricultural production and rural employment, thus increasing Pakistan's food security and prosperity by restoring the Islamic land laws in the Indian Subcontinent. Uniquely, Islam strongly links the issue of ownership of the land with its cultivation. So regardless of whether the land-owner has large tracts of lands, or small tracts of it, he must supervise its cultivation personally. And the state will assist the owners in cultivation, whether through grants or through interest-free loans.

In its Introduction to the Constitution, Hizb ut Tahrir has adopted in Article 136, "Everyone that owns land is compelled to use it, and those that require financial help are given money from the Bayt Al-Mal to enable them to utilise their land. If anyone neglects utilising the land for three years continuously, it is taken from them and given to someone else."

If the owner of land is unwilling or unable to cultivate his agricultural land despite assistance being offered, he is not allowed to hire it to another to cultivate it. RasulAllah (saw) said, «ازْرَعْهَا أَوْ امْنَحْهَا أَخَاكَ» "Cultivate it or give it to your brother"

In its Introduction to the Constitution, Hizb ut Tahrir has adopted in Article 135, "It is completely prohibited to rent land for agriculture, irrespective of whether the land was Kharajiyyah or ‘Ushriyyah. Likewise, temporary share-cropping is also prohibited. Musaaqa (renting trees for a portion of their yields) is permitted without restriction."

And Islam encourages the revival of uncultivated agricultural land by granting ownership to the one who revives dead land to agricultural productivity. RasulAllah (saw) said, «مَنْ أَحْيَا أَرْضًا مَيِّتَةً فَهِيَ لَهُ» "whoever revives a dead land, it belongs to him" [Tirmidhi] Thus, in its Introduction to the Constitution, Hizb ut Tahrir has adopted Article 134, "Dead land is possessed through its revival and fencing."