Islamabad, Nov 9 (IANS): Pakistans clerics on Wednesday welcomed the governments decision to withdraw its appeals, filed in the Supreme Court, against the Federal Shariat Courts (FSC) direction to the government to switch to Islamic banking system in a phased manner by December 2027, media reports said.

Prime Minister's Special Representative for Interfaith Harmony and Middle East, Hafiz Muhammad Tahir Mehmood Ashrafi, thanked Prime Minister Shehbaz Sharif and Finance Minister Ishaq Dar for taking such a "bold step" towards abrogating the interest-based banking system in the country, Geo News reported.

Earlier, in a press conference, Dar - with the permission of Prime Minister Shehbaz Sharif and in consultation with the State Bank of Pakistan (SBP) Governor Jameel Ahmed - announced that the government will withdraw the SBP and National Bank of Pakistan's pleas against the FSC verdict.

Ashrafi, who is also the Chairman of the Pakistan Ulema Council, said withdrawal of the petitions from the apex court would pave the way for the establishment of an Islamic society in the light of the Quran and Sunnah.

He said the elimination of Riba (interest) would give an unprecedented boost to Pakistan's economy and take the country to new heights of economic development and prosperity, Geo News reported.

Meanwhile, Sajid Mir, chief of Jamiat Ahle Hadith, said this step is highly praise-worthy.

"The government has finally realised its mistake, which is heartening to note, and has been received positively," the Islamic scholar said, adding that the government should establish a model Islamic bank under a public-private partnership arrangement.