اسلامی بینکاری کی معاصر تعبیرات کا تقابلی تجزیہ: محمدتقی عثمانی اور عبدالسلام بھٹوی کے نقطہ ہائے نظر کی روشنی میں

A COMPARATIVE ANALYSIS OF CONTEMPORARY INTERPRETATIONS OF ISLAMIC BANKING: THE PERSPECTIVES OF MUHAMMAD TAQI USMANI AND ABDUS SALAM BHATWI

Abstract

Islamic banking has emerged as a significant alternative to the conventional interest-based financial system, aiming to establish a Shariah-compliant framework grounded in the prohibition of riba (interest), the promotion of risk-sharing, and the realization of socio-economic justice. However, despite its rapid global expansion, Islamic banking remains a subject of scholarly debate, particularly concerning its authenticity, methodology, and practical implementation. This study presents a comparative analytical review of contemporary interpretations of Islamic banking through the perspectives of two prominent Pakistani scholars: Muhammad Taqi Usmani,who represents the reformist and supportive viewpoint, and Abdus Salam Bhatwi, who represents the critical and cautious perspective.The research examines the conceptual foundations, jurisprudential arguments, and practical implications of Islamic banking as articulated by both scholars. Muhammad Taqi Usmani argues that Islamic banking is firmly rooted in classical Islamic commercial jurisprudence and represents a legitimate and necessary effort to transition from an interest-based system to a Shariah-compliant financial model. He emphasizes that Islamic financial instruments such as Murabaha, Musharakah, Mudarabah, and Ijarah are derived from authentic Islamic legal principles and provide lawful alternatives to conventional financial transactions. Furthermore, he views Islamic banking as a gradual reform process (tadarruj), acknowledging certain practical limitations while maintaining its overall Shariah legitimacy and necessity under contemporary economic conditions.

In contrast, Abdus Salam Bhatwi raises critical concerns regarding the practical implementation of Islamic banking, arguing that many Islamic banking operations replicate the economic substance of interest-based transactions under different contractual forms. He questions the genuine transfer of ownership, the assumption of risk, and the authenticity of trade-based transactions in current Islamic banking practices. According to his analysis, the overreliance on debt-based instruments such as Murabaha, and the limited application of genuine profit-and-loss sharing mechanisms, undermine the higher objectives of Shariah (Maqasid al-Shariah), particularly in promoting fairness, equity, and risk-sharing.This study employs a qualitative, analytical, and comparative research methodology, examining primary scholarly writings, jurisprudential arguments, and contemporary Islamic finance literature. The findings reveal that both scholars agree on the absolute prohibition of riba and the necessity of establishing a Shariah-compliant financial system. However, their disagreement primarily lies at the applied and operational level rather than at the foundational or normative level. While Usmani emphasizes the legitimacy and pragmatic necessity of Islamic banking as a transitional reform, Bhatwi highlights its structural and operational shortcomings and calls for deeper systemic transformation.

The study concludes that Islamic banking represents a significant step toward the Islamization of modern finance, but its full realization requires greater adherence to genuine risk-sharing models, enhanced Shariah governance, and a stronger alignment with the objectives of Islamic law. The comparative analysis contributes to a deeper understanding of the methodological diversity within contemporary Islamic finance discourse and provides a balanced academic perspective on the ongoing evolution of Islamic banking.