KARACHI: Sindh Governor Kamran Tessori signed Sindh Private Loans Bill 2023 enabling imposition of strict penalties against private lenders providing interest-based loans and harassing debtors.

Under new legislation, Sindh Private Loans Bill 2023 allowed imposition of strict legal actions against private lenders. Private lenders will face five-year jail term and up to Rs 500,000 fines if found guilty of harassing debtors.

Legislation was approved after rising cases of suicides among debtors who acquired loans from private lenders including online loan apps, allegedly blackmailing and harassing them. Under new law, authorities can confiscate properties of an individual or company which is involved in facilitating interest-based financing. It enables imposition of strict penalties against those who are found receiving even single penny after providing loans. Kamran Tessori advised citizens to immediately inform government about usurers for carrying out strict actions against them. He added that interest-based moneylenders will face strict legal actions over complaints of nationals.

A few days ago, father-of-two Muhammad Masood in Rawalpindi had committed suicide after being blackmailed by an online loan company. A case was lodged at Race Course Police Station by deceased man’s brother. He stated in First Information Report that people running online loan company was blackmailing Masood by threatening women of his family and data leak.

Published in The Daily National Courier, July, 17 2023

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