‘SECP blacklists 111 illegal loan apps, seizes Rs1.8 billion’

ISLAMABAD: Caretaker Interior Minister Sarfraz Bugti on Monday told Senate that the government had blacklisted 111 social media apps providing online interest-based loans.

Additionally, he said Federal Investigation Agency cybercrime wing seized an amount of Rs1.8 billion in interest associated with these apps.

Responding to a motion initiated by Senator Mushtaq Ahmed regarding the proliferation of social media platforms offering online interest-based loans, Bugti stated that the FIA had initiated legal proceedings against the individuals behind these mobile apps.

These cases are currently awaiting legal resolution in the courts, he said.

Senator Mushtaq Ahmed highlighted how many students and educated individuals were lured into the web of these social media platforms initially offering loans at nominal interest rates. However, over time, these borrowers were coerced into paying exorbitant interest amounts.

SECP removes 120 illegal loan apps from Google and Apple Stores

Bugti emphasized that the government swiftly initiated action against unregistered apps under the Security Exchange Commission of Pakistan. However, he highlighted the limitations of the FIA in dealing with cybercrimes, citing legal complexities as a factor.

Senator Ahmad called for a detailed report from SECP regarding the steps taken to curb this issue, as the problem continues to spread within society, affecting many individuals.