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Illegal lending apps: SECP collaborating with Google to curb frauds

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  • Policy prevents  listing of such apps, imposes strict requirements.
  • Call agents required to utilise registered numbers, recorded lines.
  • SECP mandates cooling period, bars access to personal data.

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has said that it is proactively engaged with Google to counter the proliferation of illegal lending apps, The News reported Thursday. 

The search engine has already removed 84 illegal lending apps from its Play Store and has introduced a Personal Loan App Policy for Pakistan, which is effective from May 31, 2023. 

Pakistan is the sixth country in the world, after India, Indonesia, the Philippines, Nigeria and Kenya, where Google has introduced additional requirements for digital lending Apps.

The SECP announced on Wednesday its commitment to continuously reviewing and reforming policies to foster the development of capital and financial markets. 

It promotes ease of business through technology, enhances financial inclusion, reduces entry barriers, and enforces laws transparently to protect people’s rights. 

The policy incorporates measures to prevent the listing of such apps and imposes strict requirements regarding access to consumers’ personal data.

Notably, in December 2022, the SECP implemented borrower protection requirements for digital lending non-banking financial companies (NBFCs). 

These requirements include the transparent disclosure of fees and loan terms to customers before disbursement.

The SECP prohibits access to personal data, enforces a mandatory 24-hour cooling-off period for loans, and restricts digital lending NBFCs to a single app. 

Call agents are required to utilise registered numbers and recorded lines.

However, lenders and agents must adhere to ethical and legal standards prohibiting unfair practices and harassment. 

The SECP maintains a robust enforcement system for ensuring compliance. The commission follows a two-tier process for digital lending companies. 

The first tier involves obtaining an NBFC license, which entails conducting due diligence, evaluating sponsors and directors, and appointing an independent director. 

The second tier includes app approval based on the CSAF auditors’ certificate, which ensures the security of data and apps by assessing disclosure requirements.

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US envoy urges deeper strengthening of relations with Pakistan

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The significance of strengthening relations with Pakistan was highlighted by US Ambassador Donald Blome on Thursday.

Blome visited the Chaukhandi cemetery in Karachi, based on the information. President Donald Blome and other delegates were cordially welcomed by Sindh Minister of Culture and Tourism Syed Zulfiqar Ali Shah on this particular occasion.

Narendra Kumar, Heather Murphy, and Zahra Hajiani were among the delegation members who visited Chaukhandi Graveyard’s historic tombs with the American envoy, Acting Consul General Jimmy Mauldin.

Highlighting the rich historical significance of Chaukhandi graveyard, Minister Zulfiqar Ali Shah shared his ideas with the US ambassador.

Blome highlighted the Chaukhandi tombs for their exquisite craftsmanship and architectural design. He promised to help Pakistani visitors with their visa requirements.

According to the United Nations Educational, Scientific, and Cultural Organisation (Unesco), he promised to promote the nation’s historical sites.

In the meantime, Shah stated, “The Sindh government is taking steps to provide all sorts of facilities to the tourists.”

Pakistan will receive additional assistance from the US to lower methane gas emissions.

The US decided to help Pakistan lower its methane gas emissions earlier this month.

At a USAID Climate Financing event, US Ambassador Blome stated: “We are working very hard to lower methane gas emissions from dairy farming. The Green Climate Fund in Pakistan will be consulted for funding this initiative.”

“As of 2030, there are global efforts to reduce the temperature by 1 degree Celsius. The US-Pakistan Green Alliance is being followed by the collaboration with Pakistan, according to Blome.

“The problems can only be addressed by providing the stakeholders with financial and technical resources,” he continued.

The government’s first aim is to revitalise the cattle industry, according to Federal Secretary Dr. Fakhre Alam. Raising dairy farming’s production capacity will help it overcome its environmental problems.”

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Shehbaz travels to the UAE in order to strengthen trade relations.

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This visit, which is being accompanied by a high-level delegation made up of important ministers such as Foreign Minister and Deputy Prime Minister Ishaq Dar, Defence Minister Khawaja Asif, Commerce Minister Jam Kamal, Information Minister Ataullah Tarar, and advisor Tariq Fatemi, is intended to strengthen bilateral ties and expand cooperation between the two countries.
Prime Minister Sharif will visit President Muhammad Bin Zayed Al Nahyan of the United Arab Emirates in Abu Dhabi. The high-level gathering will cover Pakistani and UAE bilateral relations, with an emphasis on commerce and investment.

Along with exploring strategic alliances and shared interests that can help their respective nations, they are also expected to concentrate on talking about ways to advance collaboration across a range of industries.

Prime Minister Sharif has talks planned with other Emirati leaders, businesspeople, and heads of financial organisations in addition to his diplomatic engagements. In an effort to promote economic cooperation and draw in investment, he is also scheduled to meet with businessmen and investors from Pakistan and the United Arab Emirates.

The Shehbaz intends to encourage UAE companies to extend their operations into the Pakistani market by interacting with influential businesspeople and highlighting investment prospects in Pakistan.

These exchanges will offer a forum for talking about doable ways to strengthen business relations and carry out initiatives that will benefit both parties. Pakistan’s determination to enhance its political and economic ties with the United Arab Emirates is demonstrated by the visit.

After ending his day-long journey to Iran to offer condolences for the terrible death of Iranian President Ebrahim Raisi and his entourage in a helicopter crash on Sunday, Prime Minister Shehbaz Sharif has returned to Pakistan.

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Memon accuses temporary government of ‘delaying’ the BRT Red Line project

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On Thursday, Sindh Minister Sharjeel Inam Memon accused the interim administration of “delaying” the Red Line project of the Bus Rapid Transit (BRT).

Memon stated what he thought, saying, “The BRT Red Line project was mission impossible. However, the project has now begun to be worked on.”

“The reason government is formed is to solve the issues that the people face. “The government is working tirelessly to bring relief to the masses,” he declared.

Memon declared, “It’s also being done about the unlawful bus stands. The passengers will have access to shuttle service from us.”

“A large number of transport projects have already begun. “We aim to ensure that every individual receives a chance to work,” he continued.

Pakistan was ‘started to damage’ by the founder of PTI.

Memon reported on Thursday that a campaign to hurt the nation was started by the founder of Pakistan Tehreek-e-Insaf (PTI).

Memon said at a Karachi event: “Israel discusses the human rights violations in Pakistan. Israel, a party to the Palestinian holocaust, is endorsing the PTI’s founder. Israel has provided election funding to the PTI’s founder.”

“The worst election tampering in 2018 produced the PTI founder’s victory. Police officers, the parliament, and the PTV were all attacked,” he claimed.

“The entire country was closed due to a 126-day protest,” Memon claimed.

The PTI founder was made fun of by Memon, who said, “The PTI founder had always embraced the politics of anarchy.”

Memon stated the following when discussing the state of law and order in Sindh: “The Sindh government is serious about the state of law and order in the province. In terms of keeping Sindh peaceful, everyone is in agreement.”

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