Question ID: 24085

Assalaamoalaikum honourable sir,
I live in Pakistan and have a few question regarding Riba linked with KIBOR (Karachi Interbank Offer Rate ), I suppose somewhat similar Rate with different name will be enforced in your country as well
Question No 1
Is Kibor Riba?
Question 2
All Islamic banks are using Kibor and are linked with Kibor in their transactions. Will Islamic banking services remain allowed / hallal (Riba Free) in Shariah?
Question 3
Are all Islamic banks under the central bank with regards to all monetary policies including Kibor?
Question 4
Under the prevailing environments, is there any alternative where Islamic banks can provide their banking services to customers without any linkage with kibor?

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Asked on July 7, 2011 11:49 pm
Private answer
Kindly check your local Ulema with the revelant documents that detail the workings of the Kibor system. Then rulings can be made.
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Answered on July 7, 2011 11:49 pm