Since its inception, the Council of Islamic Ideology has been taking economic issues, especially relating to Pakistan into consideration. Islamic teachings demand for economic and social justice and thus Pakistan economy was envisioned by the founders to be free from all sorts of exploitation and injustice. Islamic principles of Riba and Darar have guided Muslim jurists in their dealing with economic issues overtime. Modern economic thought and practice have brought forth new economic institutions like banks and numerous market practices which have to be examined in the light of these principles