Pakistan State Bank Prize Bonds

By Mufti Shafiq Jakura and Mufti M.D. Mangera
Posted: 8 Rajab 1434, 18 May 2013

Q.) I would like to know the Islamic ruling regarding sale of Prize Bonds by the State Bank of Pakistan. Although Pakistan is an Islamic State and has clear ruling about riba by the Supreme Court of Pakistan, does it make it halal for the State Bank of Pakistan to sell Prize Bonds or the people to cash them anytime they wish?

A.)  Conventional prize bonds are based on interest and are accordingly haram to invest in. One may consider investments in Shariah Compliant sukuk, should the State Bank of Pakistan offer the same and provided that the investment is overseen by reputable and competent Ulama.

And Allah Ta'ala Knows Best.