The Report is a product of the combined efforts of the experts in economics and banking and those of the Shari ah. This Report, besides Introduction consists of 5 Chapters with a Summary of Conclusions and Recommendations at the end. In the introductory Chapter, the Report discusses the nature and the nationale of the prohibition of riba in Islam. The first Chapter entitled "Issues, Problems and Strategy" deals exhaustively with practical considerations in applying the profit/loss sharing system, other possible devices for replacing interest and safeguards for the success of the new system. The second Chapter discusses in detail the mechanisms for the elimination of interest from the operations of the commercial banks