More than 100 digital loan apps have been placed on a blacklist in Pakistan.

On Monday, the Caretaker Interior Minister, Sarfraz Bugti, officially declared the blacklisting of 111 online applications offering interest-based loans in response to concerns raised by Senator Mushtaq Ahmed about the growing presence of such apps in Pakistan.

Minister Bugti emphasized that the Cyber Wing of the Federal Investigation Agency (FIA) had taken decisive action, seizing Rs 1.8 billion related to interest-based transactions. Legal proceedings have been initiated against individuals operating these mobile apps, with their cases awaiting resolution in the courts, the Minister noted. The government's swift response specifically targeted apps not registered with the Security Exchange Commission (SEC) of Pakistan.

Despite these efforts, Minister Bugti acknowledged the FIA's limited capacity in handling cybercrimes, citing both capacity constraints and legal complexities as contributing factors.

Senator Mushtaq underscored that a significant number of students and educated individuals have fallen prey to apps providing online interest-based loans. These apps initially attract students and unemployed individuals with seemingly nominal interest rates, only to subject them to exorbitant charges later on.

A troubling trend involves the proliferation of "easy loan" applications on platforms such as Google Play Store and Apple's App Store, introduced by many scammers. Despite the apparent convenience of these loans, as they bypass extensive paperwork, these applications have become a menace affecting numerous individuals.