Government Saving Schemes:

Saving schemes are not like general interest transactions. The reason for this is that through these schemes, a government borrows money from the lenders not on their conditions but on its own conditions. Not only this, it ascertains the rate of profit itself as well and also keeps increasing or decreasing it on its own discretion. Although this is not exactly the same as returning a loan taken from someone with some addition to the principal amount without the lender demanding this addition, yet this arrangement is something close to it. It is known that interest has been forbidden because it can result in oppression and exploitation. However the intensity of this oppression and exploitation is greatly reduced in this arrangement. For the pious, it is befitting that they do not benefit from such schemes. However, if the general masses especially the orphans, widows and retired personnel who are apprehensive in investing their wealth in business ventures benefit from these schemes for their essential expenses, it is hoped that they will not be held accountable for this by their God.

(Javed Ahmed Ghamidi)

(Translated by Dr Shehzad Saleem)

Please also refer to the following video from 30:16 till end

https://youtu.be/leuDZxScLls?t=1816

Project Based Investments with a Government:

Please refer to the video below from 1:15:47 to 1:20:12

https://youtu.be/ZAch89JqHqQ?t=4547