A Proposal for Updating Fatwa Issuing Mechanism in Financial Matters

Abstract

The rapid and unprecedented progress in the field of science and technology has ushered in innovations affecting virtually every facet of life. Prior to the era of globalization, all kinds of financial issues were perceived as having singular dimension, solvable within the confines of their respective fields. However, in contemporary times, multifaceted aspects characterize nearly every such issue. For instance, the initiation of a marriage contract may prompt concerns about the medical checkup of the contracting parties. Similarly, advancements in medical science, such as the introduction of test tube baby treatments, present challenges regarding Shariah compliance in both non-Muslim and Muslim-majority countries. Financial matters undergo a similar transformation, evolving from individual transactions to intricate series of contracts within contracts. Addressing these complexities within the framework of Shariah law poses challenges, raising questions about the preparedness of scholars from traditional madrasas to navigate contemporary financial intricacies. This study seeks to analyze these multifaceted aspects, aiming to propose a methodology for issuing Shariah-compliant fatwas in the context of the finance industry in Pakistan.

Keywords

• fatwa
• Islamic finance
• financial transaction
• Islamic law
• shariah compliance