43 and Counting: PTA Seeks Details on 16 More Illegal Loan Apps After Suicide Case

The Pakistan Telecommunication Authority (PTA) has asked the Securities and Exchange Commission of Pakistan (SECP) to provide further details on 16 illegal loan apps, with 43 apps in the category already blocked by the regulator on Monday.

In a series of tweets, the telecom regulator explained that financial apps are licensed by SECP and are governed by the legal frameworks under the State Bank of Pakistan (SBP).

Financial apps are licensed by Securities and Exchange Commission of Pakistan (@SECPakistan) and are governed by the legal frameworks under the State Bank of Pakistan (@StateBank_Pak).

— PTA (@PTAofficialpk) July 18, 2023

PTA’s role primarily involves blocking illegal apps, but this action is taken when such apps are identified by the SECP or reported through PTA’s Complaint Management System as fraudulent by consumers.

“As part of its efforts to combat illegal loan apps, 59 apps were reported by SECP & on PTA’s complaint management system. Out of these, 43 illegal apps were promptly blocked by PTA. For the remaining 16 apps, the SECP has been requested to provide further details,” PTA said.

It further explained that when cases of illegal apps are reported, PTA takes action by contacting the respective AppStores to get these fraudulent apps removed from their platforms.

“PTA is committed to working with SECP & FIA in combating illegal and fraudulent apps,” it concluded.

The crackdown on illegal loan apps comes in the aftermath of last week’s tragic suicide case in Rawalpindi. The individual committed suicide after being blackmailed by online loan apps.