More than 100 digital loan apps have been banned in Pakistan

• FIA seized Rs 1.8 billion linked to interest-based transactions.
• The government is targeting apps not registered with SECP.
• Online loan apps have become a menace, impacting numerous individuals.

Caretaker Interior Minister Sarfraz Bugti announced on Monday that the government has officially blacklisted 111 online apps offering interest-based loans. This decision followed a discussion initiated by Senator Mushtaq Ahmed regarding the widespread presence of such apps in the country.

Minister Bugti emphasized that the Cyber Wing of the Federal Investigation Agency (FIA) had acted by seizing Rs 1.8 billion linked to interest-based transactions.

The FIA has launched legal proceedings against individuals behind these mobile apps, and their cases are currently in the court’s pipeline, declared the minister. He underscored the government’s prompt response to the issue, specifically targeting apps not registered with the Security Exchange Commission (SEC) of Pakistan.

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Despite these measures, the Minister acknowledged the FIA’s limited capacity to address cybercrimes, citing constraints in both capacity and legal complexities as contributing factors.

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Senator Mushtaq emphasized that a considerable number of students and educated individuals have become victims of online loan apps. Initially attracting them with loans offering nominal interest rates, these apps later subjected students and unemployed individuals to exorbitant interest charges.

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A worrisome trend revolves around the rise of “easy loan” apps on platforms such as the Google Play Store and Apple’s App Store, introduced by numerous scammers. While these loans offer apparent ease and convenience by avoiding extensive paperwork, these applications have become a menace, impacting numerous individuals.

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