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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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To stop begging in Saudi Arabia, Pakistan would implement a stringent Umrah regulation.

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The action, according to details, is intended to stop the begging mafia from damaging Pakistan’s reputation in the holy land.

As part of its severe efforts against beggars, the Ministry of Religious Affairs has planned to require pilgrims to sign an affidavit vowing not to beg before leaving for Umrah. Those who violate this affidavit will face strict legal action.

Umrah pilgrims will not be permitted to travel alone; they must travel in groups in order to further discourage begging. This measure ensures that pilgrims are accountable for their actions and are less likely to engage in begging.

In order to discourage begging, tour companies will also have to get pilgrims to sign affidavits.

According to sources, the administration is committed to resolving this issue because begging has damaged Pakistan’s ties with Saudi Arabia.

Four travel agents were arrested by the Federal Investigation Agency (FIA) for sending residents to Saudi Arabia to beg during raids in different parts of Multan.

Mohammad Ejaz, Ghulam, Ghulam Yaseen, and Sadiq Hussain were among the agents that were arrested, according to an FIA official.

The representative clarified that the information from previously detained people was the basis for these arrests.

The agents were allegedly sending citizens to Saudi Arabia with the purpose of begging and then collecting a share of the money earned through begging.

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These cities’ schools will reopen tomorrow as the smog subsides.

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Prior to this, the Punjab government declared that schools will be closed from November 17 to November 25.

A Punjab government announcement states that schools in the Rawalpindi Division will reopen tomorrow since the area’s air pollution has reduced following a reduction in haze.

The notice stated that schools in Rawalpindi, Jhelum, Attock, and Chakwal would reopen tomorrow.

According to reports, the level of toxic fog in Lahore and other Punjabi cities has somewhat decreased.

With an Air Quality Index (AQI) score of 497, Lahore was recognised as the second most polluted city in the world.

In the past, the district government of Lahore prohibited outdoor activities in response to the growing pollution menace.

Religious meetings are exempt, but all sports, exhibits, and activities are suspended, as is dining outside of restaurants, according to a statement released by the DC Lahore.

Additionally, stores, marketplaces, and shopping centres will close by 8 PM, however pharmacies, labs, gas stations, and supermarkets will not be affected.

Only grocery and medical departments may remain open in large department stores.

During pollution, the Deputy Commissioner of Lahore has advised residents to use masks and refrain from needless outside activities.

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SHC considers objections to the plaza’s building next to Mazar-e-Quaid

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SHC Justice Zafar Rajput said during Monday’s hearing of a petition against the unlawful construction of a plaza next to Mazar-e-Quaid that “everything has been fair in love and Pakistan.”

“Can you believe over an advertisement in Pakistani conditions?” the justice of the Sindh High Court asked during the hearing.

In Jamshed Town, the petitioner’s attorney said that an unlawful plaza was being constructed over a plot of land. “It has violated the sacredness of Quaid’s mausoleum,” the attorney stated.

The attorney argued that advertisements for the project’s booking have already been published. “What happens when advertisements are published?” the bench asked. The lawyer stated, “Layman will consider the project as lawful after these advertisements are published.”

After calling for additional arguments regarding the petition’s maintainability, the judge postponed the hearing for three weeks.

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