ABOUT NARKH, SI'R AND PROFITS

It is not permissible for the government to set fixed market prices, (which is termed ‘narkh’.) [There is not a profit limit for the sale of any commodity. Everybody may sell their wares with profits at will.] Ibni ’Âbidîn ‘rahmatullâhi ta’âlâ ’alaih’ states as follows in the fifth volume: “Enes bin Mâlik ‘radiy-Allâhu ’anh’ relates: Prices rose in the blessed city of Medîna. When Rasûlullah ‘sall-Allâhu ’alaihi wa sallam’ was entreated, ‘Yâ Rasûlallah (O Messenger of Allah) ‘sall-Allâhu ’alaihi wa sallam’! Prices are rising. Please subject us to si’r, i.e. put limitations to profits,’ he stated: ‘It is Allâhu ta’âlâ who determines prices. He, alone, makes the rizq expand or shrink, and (He, alone,) sends it (to us). I ask for barakat from Allâhu ta’âlâ.’ A hadîth-i-sherîf in the book entitled Durr-ul-mukhtâr reads as follows: ‘Do not put limitations to profits! Allâhu ta’âlâ, alone, determines prices.’ If all the tradesmen (in a country) increase their prices to exorbitant levels, [so that they become as high again,] in tandem, which in turn means cruelty against the people, then it will be permissible for the government to consult with the trade guilds and put reasonable limitations to profits.” [It is wâjib to obey that price policy followed by the government. Likewise, it is necessary to obey the laws passed for the perpetration of justice and the protection of the people’s rights and freedom. The government should be stood by in the protection it provides and illegal traffickings of property and tax should be kept away from. Laws should not be disobeyed, belonging to disbelievers in the Dâr-ul-harb as they may do.]