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“DSOP Fund Profit: Halal Or Riba?”
Officers in the Pakistan Army have the option to contribute to the DSOP (Defence Services Officers’ Provident) Fund. This is a voluntary saving deducted from one’s monthly salary and returned in full upon retirement. It is separate from the pension and is entirely optional. Additionally, officers may choose to receive a profit or return on the saved amount, which compounds over time.
I understand that the fund itself is essentially a form of personal savings and does not raise any Shariah concerns. However, my question is specifically about the profit or “interest” component. Is this considered halal? This does not appear to be conventional riba as seen in commercial loans, but the resemblance creates confusion, making it difficult to reach a confident decision. On one hand, I wish to avoid any form of haram earnings; on the other, if this return is halal, I would not want to forgo a permissible benefit.
I would appreciate a clear, evidence-based response to help resolve this matter with peace of mind.
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“DSOP Fund Profit: Halal Or Riba?”
updated 1 month ago
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The profit earned on your savings is generated through bank investments, as investment is the primary source of income for banks. A business loan is essentially an investment, not a conventional loan. In contrast, Riba (interest) arises from personal loans, which contribute only a small portion to a bank’s overall revenue.
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