Status Of Income From Pensioner’s Benefit Account

July 10, 2024

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Question

I have to ask that is it Halal to open an account and use profits by Pensioner’s Benefit Account (PBA) under National Savings Organization, Ministry of Finance at National Savings Centre (NSCs)?

Answer

Our teacher, Mr Javed Ahmad Ghamidi, is of the opinion that if the Pakistani government offers financial help to its old citizens on the basis of a scheme, it is okay because it is its obligation to do so. If the government is indulging in riba-based arrangement in doing so, it is not the responsibility of the individual.

My humble opinion is that insofar as simple pension is concerned, the principle is fine. However, if the government is offering its old citizens fixed returns on the basis of an investment, it is riba and should be avoided except in case when the individual is in real difficulty, which many pensioners are in.

Answered by: Dr. Khalid Zaheer

Date: 2015-03-05

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Dr Khalid Zaheer is an Islamic scholar and academic. He has a Ph.D. from the University of Wales. His Ph.D. thesis was a critique on Islamic Banking. Dr Kahlid also had an intensive formal religious education in Islam. He studied Quran from Dr. Israr Ahmed, Mawlana Amin Ahsan Islahi, and Javed Ahmed Ghamdi. He also went through a formal two years course on Arabic and Islamic learning from Al-Mawrid, in 1983-84. Dr. Khalid Zaheer has a deep and incisive understanding of the very relevant issue of Islam and modernity and has taught courses on Islamic ethics, traditions and economics etc. at various top national institutions, including the Aga Khan University, Lahore University of Management Sciences (LUMS), University of Central Punjab, Hailey College of Commerce, information Technology University, and Institute of Art and Culture. Dr Khalid Zaheer has also delivered various lectures on Islam in UK, Canada, Australia, Malaysia, Japan and many prestigious institutions of Pakistan. Including Civil Services Academy, Administrative Staff College and PAF War College.

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