Global financial crisis became drastic during 9th-10th August, 2007 when the interest rates went so high suddenly (Taylor, 2009). Due to bankruptcy of Lehman Brothers in 2008 the wave of financial crisis propagated and as outcome banks stopped interbank lending and interest rate was rose to 5% on interbank borrowings. However, regulatory authorities tried to put more liquidity in financial market but eventually economic transactions are declined and thus economies faced severe recession in 2009. In 1997-1998 financial crisis stricken Asian countries (Warwick J. McKibbin, 2010). The repeated financial as well as economic crisis happens due to banking system relying mainly upon instrument of interest and speculations (Ghutai & Bahari, 2019). However, financial crisis is periodically repeating since the capitalism has been adopted as global financial setup. Due to rise in asset prices has sharply given rise to financial crisis thus, quick rise in asset prices as well as contagion nature of financial crisis are significantly correlated. The Lombard Street has addressed financial crisis of last century and the role of lender of last resort to address the issue. Lender of last resort in a financial crisis must have to lend freely, by applying penalty rate with respect to collateral that is marketable in ordinary course of business while there is no distress (Bagehot, 1873). Thus, financial crisis can be stopped to happen if debt has been granted without interest and reliance upon debt has been restricted by imposing collaterals. Financial crisis has been taking place throughout the centuries and arises due to quick lack of confidence upon the existence of some financial organizations or assets (Charles, 1841); (Kindleberger & Aliber, 2011). This is because the chain of credit is interlinked with the assumptions regarding the capability of debtors to settle payments therefore, in order to prevent and settle down the spread of financial crisis the existence of lender of last resort is must. Lender of last resort basic role is to provide guarantee of loan within certain confined conditions to stop financial distress to spread or to stop it even to start. Fisher (1945), Simon, (1948), Friedman (1969) and so many others have stated that the exiting financial system of the world based upon interest has been unstable (Gamal, 1998). In 1929 by the Wall Street disintegrate or collapsed, the building of capitalist economy has also been intensely vibrated. The economic shocks let the economists to think about the soundness of structure upon which capitalism is standing. Since 1929 to 1939 due to economic shocks the world has been subjected to exhaust due to the wake of financial problems carried by fragile capitalism opened the doors of seriously ponder upon the economic problems and its solutions. Till 13th century the church rule was having supremacy and taking interest was severely prohibited but allowed rent charged against using land or durable goods by cannon or church law. However, due to gradual decrease in church powers, the secular powers have been increased and interest-based loans has been allowed (Qureshi, 1946). Thus, interest as an exploitative tool with respect to debt is a powerful tool to control civilizations as well as by allowing extracting resources from their economies. With respect to Bagehot rules the IMF as lender of last resort should forward its loans to countries who follows certain rule of requirements especially in context of banking system and foreign banks should be allowed to operate in their countries and loans would be sanctioned on the basis of collateral (C. W. Calomiris, 1998); (C. Calomiris & Meltzer, 1998). Japan has lowered interest rate for the first time in developed world to zero percent by adopting zero interest rate policy (ZIRP) twenty years back and set an example for aggressive monitory policies of United States and European countries with respect to encounter their own financial crisis years later. Bank of Japan (BOJ) has used Zero Interest Rate policy (ZIRP) in 1999 to avoid deflation by reducing its interest rates to zero percent and since then maintaining unconventional monetary policy in one way or the other way. Since then US, Europe and Japan is using the policy in more or less extent like Japan and European countries are still using near zero or below zero percent interest rate however United States is -2.5% but still the ultimate outcome of zero interest rate (ZIR) policy implications by three major economies of the world like United States of America (USA), Japan and Europe has not been realized in its real sense because all the three have not exited from it. Though the concept of ZIRP adopted by BOJ was controversial at that time but still its potential impact and outcome has been poorly understood even by BOJ’s officials implementing it (Scaggs, 2019). The experience of Japan for last 20 years of using zero lower bound policy in one way or the other way shows the extent and power of central bank to take steps by their own by underscoring the importance of broader economic reforms as well as fiscal policy in connection with monetary program as stated (Miller & Fujioka 2019). Applying near zero bound or below zero bound upon interest the presence of interest as an exploitative tool cannot be overcome (Ghutai & Bahari, 2019). United Kingdom has been using zero lower bound rates by reducing interest rate to 0.5% and stayed at same lower bound percentage since March 2009 to 2013. Likewise, in USA, the Federal Reserve Bank adopted zero lower bound monetary policy by reducing interest rates in between 0% to 0.25% since December 2008 till 2013 stated by (Pettinger, 2013). Whether interest is near to zero or just below zero, it will still be interest unless interest has been completely omitted upon debt such as zero interest upon loan (Ghutai & Bahari, 2019). The world has witnessed crisis which is frequent, contagion in nature and virulent and spreads throughout the world financial markets therefore, it is inevitable to restructure or redesign to strengthen international financial system to reduce the frequency and intensity of financial crisis as well as to strengthen global capital markets and domestic capital markets as the financial crisis that raised in 1994 in Mexico then in 1997 and 1998 of east Asia spread to Russia, Europe and Latin America, (Fischer, 1999). Interest rate upon long term Government bonds has been at its lowest value since last 150 years with respect to developed economies. The global secular forces are the sole authority in creating low interest rate situation where real interest rate lie at 2% for more than 40 years. This situation has been arisen due to the motives of investors for safety as well as liquidity and response towards low growth in global economy. The trend in real interest rate has been started fallen after 1980’s and even in 2016 it had been having been 0.5 %. The secular trend in decreasing rate of real interest is highly reflecting a global incidence. Such as, real interest rate has been reduced in advanced economies especially in UK, Germany, France, Italy, Japan, Canada and United States of America. Lower interest rates in developed countries is purely a secular situation and has been brought up by global forces who are having specific stakes and connection within certain countries national policies as well as internal developments. Thus, whatever the forces in future will increase real interest rates will also be global (Negro, Giannone, Giannoni, & Tambalotti, 2019). Western developed world has adopted lower interest or near zero interest rate helps workers or labor market. The Federal Reserve Banks decision to keep zero interest rate policy in place may not be good for investors of Wall Street but it is good news for labor market or workers. The economy where millions of workers could not find job while they want to do job, and millions of workers did not get permanent jobs, where wages or salaries are stagnant provides most sound justification towards keeping interest rate lower. Higher interest rates will result in fewer jobs as well as lower wages (Baker, 2015). However, man-made laws became invalid if it contradicts divine laws (Blackstone, 2014). The history of Islamic finance is as old as divine religions are to date (Uddin, 2015). All divine books have guided human beings to carryout economic activities without interest so that wellbeing of humans can be assured. In experimentation with interest rates by developed countries to stabilize global financial setup would not result in rescuing the existing fragile financial setup because without divine guidance financial crisis cannot be overcome. In order to reap the fruit of complete interest free economic paradigm countries needs to abolish interest from their economies to realize divine barakah. Without inculcating Islamic values of sharing and redistribution of wealth as practiced in Islamic societies back in 1400 AD, the existing Muslim regimes cannot be able to solve its economic, financial and social problems (Moisseron, Moschetto, & Teulon, 2015).