Zakat On Islamic Naya Pakistan Certificate (INPC)
The last response posted in the above thread provides response of Ghamidi Sahab in relation to project based investment with a Government ( Discussion 1276 • Reply 69418 ). Since it was posted at a later date so you might have missed it earlier. Demanding profit on loan is Riba ( Sood ) and is Haram in Sharia. Investment/financing in any company or with a government do not fall in this category.
Salaam WB, Thanks so much for creating this thread. I’ve been trying to find answer on the same subject. A) The bottom line is: 2.5% Zakat is applicable on the principal amount invested and if any profits have been booked, correct? (important!) Doesn’t matter if the intention is to keep on re-investing the INPC upon maturity – please elaborate. B) is there a timeline on this? E.g one should hold the investment(INPC in this case) for atleast one year before Zakat becomes applicable? Being conscious that from practical standpoint if I’ve invested all my liquidity in the INPC, it becomes (operationally) challenging to take out 2% for Zakat distribution. Kind regards, Harris