The government’s recent crackdown on illegal loan providers highlights a distressing trend of authorities springing into action only after irreparable damage has been inflicted. Federal IT Minister Syed Aminul Haque proudly announced that 43 loan applications had been blocked, but this decisive step comes in the wake of a tragic incident involving a man’s suicide due to threats from loan apps over mounting debts.
The FIA has launched a probe into the case, resulting in the arrest of nine suspects and the booking of 19 individuals. These actions, albeit commendable, are reactive in nature, leaving many to question why preventative measures were not taken earlier. The exposure of numerous loan apps and the prevalence of mafia groups operating through social media platforms luring unsuspecting users with instant credit underscores the magnitude of the problem. Exploiting financial vulnerabilities, these unscrupulous entities resort to blackmail and intimidation, leaving innocent individuals trapped in a vicious cycle of debt. While the government’s awareness campaign aims to safeguard the public, it raises concerns about the absence of pre-emptive strategies. It is disheartening that such activities have gone unchecked until only recently. Now, the government must enforce stringent regulations and ensure that only licensed and regulated entities are allowed to operate.
As the government’s crackdown unfolds, it is imperative that the authorities remain vigilant in their efforts to bring the culprits to justice. However, this reactive approach must serve as a stark reminder that swift and proactive measures are vital to safeguarding the public from fraudulent loan schemes. It is high time for the government to prioritise consumer protection, strengthen regulations, and establish a comprehensive framework to mitigate such risks. Only then can we hope to prevent future tragedies and protect the financial well-being of citizens.
Published in The Express Tribune, July 19th, 2023.
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