Question:

Is it permissible to fish by piercing a small live fish etc. in a hook? Is it permissible to purchase fish caught in this manner? Is it permissible to fish by attaching flour (to the hook)?

Answer: حامدا ومصليا و مسلما

It is prohibited to fish by piercing a live small fish in a hook. However, it is permissible to purchase fish caught in this manner. It is better to fish using flour or any other similar thing that does not have life in it and whose usage in not sinful in fishing. (امداد الفتاوى ج:4ص250)

And Allah Ta’ala knows best.

(Hazrat Mufti) Ismail Kacholvi (May Allah preserve him.)

Fatawa Deeniyah Vol.5 Pg.54