Pakistan Takes Strong Action Against Unregistered Loan Apps, Blacklists Over 100
In a decisive move on Monday, Caretaker Interior Minister Sarfraz Bugti declared the blacklisting of 111 online applications offering interest-based loans. The announcement followed a discussion initiated by Senator Mushtaq Ahmed on the alarming proliferation of apps providing online loans with interest rates in the country.
Karobar
During his statement, Bugti disclosed that the Cyber Wing of the Federal Investigation Agency (FIA) had successfully seized an amount of Rs 1.8 billion linked to interest. Legal cases have been initiated against individuals operating these mobile apps, with proceedings currently underway in the courts.
Emphasizing the government's response to the issue, Bugti mentioned the crackdown on apps not registered with the Security Exchange Commission of Pakistan. However, he acknowledged the FIA's limited capacity in addressing cybercrimes and highlighted existing legal challenges.
Senator Mushtaq Ahmed expressed concern about the adverse effects of these apps on students and educated individuals who have fallen victim to them. Initially, these apps enticed users with nominal interest rates, particularly targeting students and the unemployed. However, users soon discovered themselves burdened with exorbitant interest payments.
The surge in scammers launching "easy loan" applications on popular platforms like Google Play Store and Apple App Store has become a pressing issue. Despite the apparent simplicity and convenience of these loans, thanks to minimal paperwork requirements, these applications have proven to be detrimental to numerous individuals.
