Pakistan, July 2 -- The government has unveiled a strategy to transform Pakistan's financial sector into a fully Shariah-compliant system after December 31, 2027, pledging a gradual transition that safeguards financial stability, honours all existing contracts, and avoids disruption to banking, capital markets and public finances.

The 'Post-2027 Financial System in Pakistan' strategy paper, released by the Finance Division, outlines a roadmap for eliminating interest (Riba) from the country's financial system in line with the Federal Shariat Court's 2022 judgment and the 26th Constitutional Amendment, which requires the complete elimination of Riba before January 1, 2028.

The government has assured investors and financial institutions t...