Chinese investors, who invested billions of rupees in digital lending apps, have wrapped up investments from Pakistan.
Sources told ProPakistani that the Chinese were the major investors who invested millions of rupees in digital lending apps, which caused the Pakistani lending industry to boom in 2022.
Some of these digital lending apps were operating in Pakistan with the approval of the SECP, while some illegal online lending Apps had started offering loans due to the weak enforcement of the SECP and the State Bank; however, later on, the SECP tightened the regulations.
According to SECP, the commission has issued licenses to 104 lending companies, while 5 were canceled from 2020 to 2025.
Initially, the borrowers were obtaining upto Rs. 20,000 loans despite the exorbitant interest rates and aggressive recovery tactics by these lending Apps.
Over 20 million borrowers reportedly obtained loans worth billions of rupees from these digital lending Apps, while over 15 million people downloaded eight major lending companies’ apps on the Google Play Store.
The crackdown as well as harassment against registered and illegal lending Apps started when Muhammad Masood, a resident of Rawalpindi, committed suicide on July 11, 2023, after one of the illegal digital lenders blackmailed him.
It is pertinent to note that these illegal digital lenders, with the consent of borrowers, had gained access to personal details, including family contacts, data saved in mobile phones, and even social media accounts.
Sources said that the FIA, during 2023 during countrywide operation against illegal Loan apps companies, had registered 74 cases for inquiries on the complaints lodged from the affectees.
It also arrested 17 suspects running illegal online loan schemes from various cities and blocked over 3 dozen accounts.
Sources said that FIA had gained access to the bank accounts of digital lending companies after coercive actions started against the employees as well as higher-ups of registered companies.
Sources added that the companies reportedly settled their matters with FIA subsequently, and ongoing inquiries against most of these digital lending Apps stopped. On the other hand, dozens of victims of these companies are still awaiting justice.
“settled their matters with the FIA” means what? Paid off the investigators to look the other way?
Good . Lending should never be predatory .
The world has had enough of lending
adha kaam nahin karo journalism kerni hai tou poori karo inn apps kay naam batao or awaam ko aware kero