On Monday, Caretaker Interior Minister Sarfraz Bugti announced that the government has blacklisted 111 online applications that were providing interest-based loans. The minister’s statement came during the conclusion of a discussion on a motion raised by Senator Mushtaq Ahmed regarding the proliferation of apps offering online interest-based loans in the country.
Bugti revealed that the Cyber Wing of the Federal Investigation Agency (FIA) had seized an amount of Rs 1.8 billion related to interest. Cases have been registered against individuals operating such mobile apps, and these cases are currently pending in the courts.
The minister highlighted that, in response to the issue, the government took action against apps that were not registered with the Security Exchange Commission of Pakistan. However, he acknowledged the limited capacity of the FIA in dealing with cyber-crimes and mentioned existing legal challenges.
Senator Mushtaq Ahmed, in his earlier remarks, expressed concern about the impact of these apps on students and educated individuals who have fallen prey to them. Initially, these apps lured individuals with nominal interest rates, particularly targeting students and unemployed individuals. However, later on, users found themselves burdened with exorbitant interest payments.
The rising trend of scammers launching “easy loan” applications on platforms like Google Play store and Apple iStore has become a significant issue. Despite the apparent ease and convenience of these loans, given their minimal paperwork requirements, these applications have proven to be detrimental to numerous individuals.
