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Does the commission I give him falls under the category of Riba (Interest)?


Assalamu Alaikum

I am a businessman from Panjgur district of Baluchistan, bordering Iran. We do business with Irani people and I do not have enough capital to increase the amount. I have come to an agreement with an Irani investor to reserve Iran Riyal 500 Million for my business and to pay on my behalf for my imports from Iran upto a limit of Iran Riyal 500 Million, and I would keep on paying the dues which go above that limit. After one month’s time when we calculate, I will give him a commission of 0.008% for every payment he made on my behalf, i.e, 800 Irani Riyals for 100,000 Irani Riyals. By the way, if a Pakistani keeps money with an Irani and distributes through him, he collects 0.008% from the Pakistani. Does the commission I give him falls under the category of Riba (Interest)? I am badly in need of reply and send it as soon as possible.

الجواب حامدا و مصلیا

Whatever the amount the Irani investor pays to people on questioner’s behalf, becomes a debt upon the questioner. Since, the act of paying above the net amount while returning a debt, is falling within Riba (Interest) based transaction, it is impermissible and prohibited in Shari’a and should refrain from doing so.

Allah knows best.