ISLAMABAD: Pakistan’s securities and telecom regulators have joined forces to curb the proliferation of unlicensed and predatory digital lending apps that have been exploiting vulnerable borrowers.
The Securities and Exchange Commission of Pakistan (SECP) and the Pakistan Telecommunication Authority (PTA) have established a joint monitoring and reporting mechanism to identify and take action against illegal online lenders, a statement said on Saturday.
The two regulators also agreed to raise awareness about such apps and ensure a safe digital ecosystem.
SECP chairman Akif Saeed held a meeting with PTA chief Major General (R) Hafeez Ur Rehman to foster effective collaboration and explore areas of mutual interest between the two institutions. The SECP chairman was accompanied by Commissioner Mujtaba Ahmad Lodhi and Head of Specialised Companies Division Khalida Habib.
They agreed to enhance collaboration against illegal lending apps and make Pakistan’s digital/cyber landscape secure.
It was agreed that SECP and PTA will formalise their collaboration through the signing of a memorandum of understanding that will lay a foundation for future collaborative initiatives, strategically aimed at fortifying the regulatory framework and effectively dealing with issue falling within their respective regulatory space.
Specific to illegal lending apps, it was agreed to set up a joint monitoring and reporting mechanism for ensuring appropriate and timely action.
During the meeting SECP chief apprised his counterpart about the SECP framework for digital lending apps, the envisioned role of cyber security auditors to certify the confidentiality, and security requirements of digital apps.
It was informed that SECP publishes a whitelist on its website for validating the legal status of digital lending apps operating in Pakistan.
Akif informed the PTA chief that, in light of the growing digitisation in the corporate and financial sectors, SECP is building a cyber security framework and would share it with PTA for feedback.
PTA chief appreciated SECP’s regulatory framework for lending apps, and highlighted the importance of data localisation measures.
The two regulators aim to protect the public from potential fraudulent practices. The meeting culminated on a positive note with both parties looking forward to implementing the discussed initiatives, SECP said.