Scammers rob Rs5.6 billion in online investment fraud in Pakistan’s northwest

This photograph taken on November 19, 2015 shows Pakistani employees of online marketplace company at work in Karachi. (AFP)
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Updated 24 December 2020
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Scammers rob Rs5.6 billion in online investment fraud in Pakistan’s northwest

  • PSlash opened an office in Peshawar in January promising profits of up to 13 percent on investments in real estate and digital and foreign currency
  • On its last day of operation on November 19, the firm had 105,000 investors, on November 20 a notification on the website read “System is hacked“

PESHAWAR: More than a 100,000 people in Pakistan’s northwestern Khyber Pakhtunkhwa province are believed to have been scammed out of Rs.5.6 billion by an online investment company that investigators failed to crack down on despite early reports of fraud, officials, lawyers and victims of the crime have said.
The company, PSlash, opened an office in Peshawar’s Deans Trade Center in January this year, promising profits of up to 13 percent on investments in real estate and digital and foreign currency. On its last day of operation on November 19, the firm had 105,000 registered investors, a former employee told Arab News.
But on November 20, a notification appeared on the website: “System is hacked.” Since then, victims of the scam say they are unable to reach any of the people who had said they were employed with the company. Many have lost their entire lifesavings.
The loss could have been avoided, lawyers and victims of the fraud say, if investigators and regulators had reacted in time. Indeed, reports of problems with the company were filed months before the company shuttered in November.
Jamal Afridi, an attorney for Yaseen Ullah, one victim of the scam, said he first filed a fraud report with the Federal Investigation Agency (FIA) on August 24 and another one with the Pakistan Telecommunication Authority (PTA) on September 16, saying the agencies “were sleeping when we were knocking at their doors.”
“On behalf of Yaseen Ullah, I met high officials and submitted written complaints to PTA, FIA and police about the suspected fraud company PSlash but no one took it seriously,” the Supreme Court advocate told Arab News.
“If the concerned departments had taken action accordingly, this billions of rupee scam would not have happened in Peshawar,” he added. “Now the government should investigate this issue and punish the concerned officers ... because of their negligence thousands of people lost money.”
Asad Khan, a provincial officer at the FIA, admitted that the online fraud was worth “billions of rupees” but declined to comment when asked why investigators had not acted earlier, despite reports of fraud.
“Right now, we are not in a position to disclose the initial progress [in the case],” he said.
PTA spokesman Khurram Mehrab told Arab News that the regulator started investigating PSlash after receiving a complaint in September, but declined to give more details.
“After receiving the compliant, we started an investigation into this online fraud,” he said. “There are thousands of websites, and until there is a complaint, PTA can’t monitor each and every one.”
It is unclear to date who the owner of PSlash was, but one police report filed in Peshawar names a Rabia Batool. However, neither investors nor former employees of the company that Arab News spoke with have ever met Batool.
Victims said they were in touch with two men called Wasim Zeb and Nabeel Khan who presented themselves as local executives of the company.
“I only knew the local executives and they would tell us that PSlash is a worldwide [company] investing in forex, digital currency and real estate trade,” a former employee told Arab News on condition of anonymity.
He said the company had changed its name three times, from Earn Bitcoin to Payslash and finally to PSlash. When investors questioned its credibility, agents and managerial staff would tell them that it was registered with the Company Security Exchange of Pakistan (CSEP).
A database of companies on CSEP’s website does not include the name of PSlash.
For now, there is no respite for victims of the fraud, many of whom are poor laborers who invested their entire life savings in the scheme.
Muhammad Noor, a daily wage earner, said a friend advised him to borrow money from relatives to invest in PSlash and make a quick profit. He invested Rs2.5 million ($15,625).
“Now I am under an unbearable burden,” he said. “I have already sold my wife’s jewelry.”
Construction contractor Abid Afridi invested Rs500,000 ($3,125) and received one interest payment of Rs10,000 ($62.5) — but only in the first month after the investment.
“It’s very unfortunate and shocking for me and my family that we have lost our savings,” he said. “I am unaware of the legal process and no one knows what to do now.”
Abdur Rehman, who invested Rs1.5 million ($9,375) in the business, said he and several other investors had paid the money to PSlash in person and in cash.
In November, Rehman said, a few of the investors had managed to trace Zeb, the alleged company employee, who had promised to recover their lost funds.
“I am with you and will recover your money soon,” Rehman said, quoting Zeb from the meeting. “But he has since disappeared into thin air.”


Pakistan accuses Iran-backed militants of 17 sectarian killings between September 2023 to February

Updated 26 min 18 sec ago
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Pakistan accuses Iran-backed militants of 17 sectarian killings between September 2023 to February

  • United States Treasury placed Zainabiyoun Brigade on its financial blacklist in January 2019
  • Pakistan’s interior ministry designated Zainebiyoun Brigade a “terrorist” organization in April 

KARACHI: The Counterterrorism Department (CTD) in Pakistan’s southern Sindh province said on Thursday the Iran-backed Zainabiyoun Brigade had carried out at least 17 sectarian killings in Karachi between last September to February this year, which were previously believed to be incidents of street crime.
The US Treasury placed the Zainabiyoun Brigade on its financial blacklist in January 2019 as part of a “pressure campaign to shut down the illicit networks the (Iranian) regime uses to export terrorism and unrest across the globe.” 
Many of the group’s fighters are believed to have been recruited from Pakistan by Iran’s Islamic Revolutionary Guard Corps and its Basij militia, and trained for operations in the Syrian civil war, which broke out in 2011. 
Some of the recruits have since returned to Pakistan, especially during COVID-19 pandemic closures, authorities say, prompting them to step up their crackdown on the group’s activities. Islamabad banned the group last month, saying it was a potential threat to security. 
“In the last few months of 2023 and the first few months of 2024, there was a sudden increase in targeted killings in Karachi, which initially appeared to be deaths due to resistance in street crimes,” a CTD statement released on Thursday said.
“When the CTD investigated these incidents, it was found that from September 2023 to February 2024, in addition to street crimes, there were nearly 17 sectarian targeted killings … Upon further technical and forensic investigation of the network involved, it was revealed that terrorists from the banned organization Zainabiyoun were involved in these acts of terrorism.”
The CTD said local militants belonging to the group were getting their targets, funds and other facilities from a man named Syed Hussain Mousavi alias Muslim who used one group to perform reconnaissance and another to take out targets. 
According to the CTD, sectarian killings carried out by the group had stopped in the city after two Zainabiyoun militants, Waqar Abbas and Hussain Akbar, were jailed following their arrest in a case involving the possession of illegal weapons.
Another team of sectarian killers originally from Gilgit-Baltistan had gone underground since the arrest of their accomplices, the statement said. 
In January, the CTD in Sindh said it had arrested a “trained terrorist” belonging to the Zainabiyoun Brigade in Karachi who was accused of an assassination attempt on a top Pakistani cleric.
Mufti Muhammad Taqi Usmani, a former Pakistan top court judge and a permanent member of the Organization of Islamic Cooperation’s International Islamic Fiqh Academy, narrowly escaped the assassination attempt in the port city in March 2019. The attack had killed two of Usmani’s guards and wounded a fellow religious scholar, Maulana Amir Shahabullah.
Karachi, a metropolis of 20 million that hosts the stock exchange and central bank, has for decades been beset by armed violence. 
While an armed campaign by the military, with help from police, paramilitary Rangers and intelligence agencies, against armed gangs and suspected militants in the city brought down murder rates after 2013, street crimes have been on the rise again since last year, with shooting deaths in muggings and robberies once again becoming a daily headline.


Pakistan says offering ‘most cost-effective’ Hajj package in region

Updated 44 min 48 sec ago
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Pakistan says offering ‘most cost-effective’ Hajj package in region

  • Pakistan has a Hajj quota of 179,210 pilgrims this year
  • 63,805 people to undertake pilgrimage on government scheme

ISLAMABAD: Zia-ur-Rehman, the director of the Pakistan Hajj Mission in Madinah, has said the government was offering its citizens the ‘most cost-effective’ Hajj package among regional countries through its official scheme, state media reported on Thursday.
Pakistan has a Hajj quota of 179,210 pilgrims this year, of which 63,805 people will perform the pilgrimage under the government scheme while the rest will use private tour operators. This year’s Hajj is expected to run from June 14-19.
“This [Pakistan] package is priced at 14,300 Saudi Riyals, which includes meals, whereas comparatively neighboring India’s package costs 15,000 Saudi Riyals without meals,” Rehman said in an interview with the APP news agency.
“This price difference highlights the efforts of the Pakistani government to make the Hajj pilgrimage more accessible and affordable for its citizens. The package duration is 40 days, and there is a minimum expense of 1,400 Riyals per pilgrim.”
Rehman said the Pakistan Hajj Mission had made “elaborate food arrangements” for intending pilgrims who would perform Hajj under the government scheme and were currently staying in Madinah.
Seven top catering companies operating in Madinah had been selected to provide three meals a day to the guests after a competitive bidding process which 29 companies took part in.
“The hiring process, initiated in November last year following approval from the federal cabinet, was completed in due course of time, ensuring quality food and hygiene standards at a rate of 35 Saudi Riyal per person,” Rehman said.
“Designated officials have been deployed in the kitchens of the catering companies to closely monitor the entire process, from storing meals to transporting food in refrigerated units for distribution to pilgrims at their residences, under close scrutiny.”
Pakistan’s religion ministry has confirmed that over 15,000 pilgrims from the country had already arrived in Saudi Arabia ahead of the Hajj pilgrimage since a Hajj flight operation started on May 9. The government has also set up two control rooms, one each in Makkah and Madinah, to facilitate pilgrims.


Climate change effects reduce Pakistan mango production for third consecutive year — union

Updated 16 May 2024
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Climate change effects reduce Pakistan mango production for third consecutive year — union

  • Export target for mangoes reduced from last year’s 125,000 metric tons to 100,000 
  • Union calls on government to develop new mango varieties compatible with climate change

KARACHI: The All Pakistan Fruit and Vegetable Exporters Association said on Thursday there was a “significant reduction” in mango production for a third consecutive year due to climate change, which meant the country may not be able to meet its export targets.
The Association has set a target of 100,000 metric tons of mango exports in the current season, with exports expected to start from May 20 with a focus on China, America, Turkiye, Japan, Iran, Afghanistan and Central Asia.
“The impact of climate change is having a pronounced negative impact on mango orchards in Pakistan, leading to a significant reduction in production and due to non-availability of export quality mangoes, the export target could not be attained last year as well,” Waheed Ahmed, patron-in-chief of the All Pakistan Fruit and Vegetable Exporters Association, said in a statement. 
“This year the export target has been set at 100,000 metric tons, whereas last year the export target was 125,000 metric tons but the export of mango remained at 100,000 metric tons.”
Pakistan produces around 1.8 million metric tons of mangoes annually, of which 70 percent are produced in Punjab province, 29 percent in Sindh and one percent in Khyber Pakhtunkhwa. 
“This year, due to weather effects, the production of mango in Punjab is 35-40 percent, while in Sindh it is less than 20 percent and thus the total production is feared to be reduced by 0.6 million metric tons,” Ahmed said. “This estimate was made at the start of production and is likely to increase further as the season progresses.”
With an export target of 100,000 metric tons of mangoes during the current season, Pakistan could earn foreign exchange of $90 million, Ahmed said, adding that the sector, including mango processing, packaging and warehousing, was an over Rs100 billion industry that provided employment to millions of people. 
“The sector is facing problems due to significant increases in costs of electricity, gas, transportation, garden maintenance, pesticides and water management, making it difficult to compete for exports,” Ahmed said.
“The effects of climate change have emerged as the biggest threat to mango production, which can well be gauged from the fact that mango production has declined for the third year in a row.”
Ahmed said long winters, rains and hail, combined with severe heat waves, had changed the pattern of agricultural diseases in Pakistan:
“There is certainly a lack of serious efforts at the federal and provincial levels to protect the agricultural sector from the effects of climate change, particularly through research enabling the orchards of mangoes and other fruits to develop sufficient endurance to sustain against the tough weather conditions and reduction in disease resistance. Research-based solutions must be found urgently to address this, otherwise mango production and export will be at risk.”
The association called on federal and provincial agricultural research centers to work on an emergency basis to help farmers deal with the effects of climate change.
“In order to continue the production and export of mangoes, it is imperative to develop new varieties of mangoes that are compatible with the climatic changes in Pakistan,” Ahmed said.
“Similarly, prevention of diseases and supply of suitable agricultural pesticides are also needed to minimize the effects of climate change.”


As Pakistan deputy PM visits Beijing, Islamabad vows to track masterminds of attack on Chinese workers

Updated 25 min 55 sec ago
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As Pakistan deputy PM visits Beijing, Islamabad vows to track masterminds of attack on Chinese workers

  • Ishaq Dar reaffirms Pakistan’s commitment to the regional connectivity initiative launched by China’s Xi Jinping
  • The two countries express satisfaction at their expanding space cooperation and agree to build on it further

ISLAMABAD: Pakistan vowed to pursue the masterminds behind a suicide attack that claimed the lives of five Chinese engineers earlier this year while reaffirming its commitment to the regional connectivity initiative launched by President Xi Jinping’s administration during Deputy Prime Minister Ishaq Dar’s three-day visit to Beijing.
According to a statement issued by the foreign office of Pakistan on Thursday, Dar, who is also the foreign minister, began his trip to China on May 13 where he co-chaired the Fifth Round of China-Pakistan Foreign Ministers’ Strategic Dialogue with his counterpart Wang Yi before concluding his visit.
During his stay in Beijing, the two sides discussed multiple global and regional challenges, including the second phase of the multibillion-dollar China-Pakistan Economic Corridor (CPEC).
The foreign office said both countries condemned the March 26 suicide attack on the Chinese workers who were on their way to the Dasu Hydropower Project in the northwestern Khyber Pakhtunkhwa province.
“In keeping with its ironclad friendship with China, the Pakistani side would hunt down the perpetrators and bring them to justice, take more effective security measures, and make all-out efforts to ensure the safety of Chinese personnel, projects and institutions in Pakistan,” the statement said while providing details of the discussions between both countries.
Pakistan’s military spokesperson, Maj. Gen. Ahmed Sharif, said last week the attack was planned in “terrorist sanctuaries” in neighboring Afghanistan while addressing a news conference.
His assertion came amid accusations from officials in Islamabad that the administration in Kabul was not doing enough to prevent groups like banned Tehreek-e-Taliban Pakistan (TTP) from launching cross-border attacks.
“The two sides reiterated their commitment to combating terrorism in all its forms and manifestations with a ‘zero tolerance’ attitude, and agreed to further strengthen cooperation in counter-terrorism and security through a comprehensive approach,” the foreign office continued.
Pakistan also agreed to work with China to support high-quality Belt and Road cooperation and forge an upgraded CPEC version by jointly building growth, livelihood, innovation and green corridors and aligning them with Pakistan’s development framework and priorities.
“The two sides agreed to accelerate progress on major connectivity projects including upgradation of ML-1 [railway infrastructure], the Gwadar Port, realignment of Karakoram Highway Phase II, strengthen cooperation in agriculture, industrial parks, mining, information technology and other fields according to local conditions, and enhance Pakistan’s capacity for sustainable development,” the foreign office informed.
“The two sides believe that the Khunjerab pass plays an important role in promoting bilateral trade and people-to-people exchanges, and agreed to speed up efforts to make sure that the Khunjerab Pass can function all year round,” it continued.
The two sides also agreed to strengthen communication and coordination over issues related to Afghanistan, calling for concerted efforts of the international community to help deal with the humanitarian situation in that country.
They agreed to play a positive and constructive role in helping Afghanistan achieve stable development and integrate into the international community.
Additionally, Pakistan and China expressed satisfaction at their expanding space cooperation and agreed to further build on it for a peaceful and mutually-beneficial exploration of space.
Earlier this month, Pakistan sent an imaging device in outer space as part of China’s Chang’e-6 lunar mission.


Pakistan establishes Hajj control rooms in Makkah, Madinah to facilitate pilgrims

Updated 16 May 2024
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Pakistan establishes Hajj control rooms in Makkah, Madinah to facilitate pilgrims

  • Around 15,819 Hajj pilgrims have arrived in Saudi Arabia weeks before Hajj 2024 kicks off 
  • Hajj control rooms in Makkah and Madinah are open 24 hours a day, says Pakistani official

ISLAMABAD: Pakistan has established two control rooms, one each in the holy cities of Makkah and Madinah to facilitate Hajj pilgrims, the religion ministry confirmed on Wednesday, as thousands of Pakistanis continue to arrive in Saudi Arabia ahead of the annual Islamic pilgrimage. 
Pakistan’s Ministry of Religious Affairs (MoRA) has confirmed that around 15,819 pilgrims from the country have arrived in Saudi Arabia weeks before the Hajj begins. 
This year, 179,210 Pakistanis will perform Hajj under government and private schemes. Pakistan kicked off a month-long flight operation last week. Five airlines— PIA, Saudi Airlines, Airblue, Serene Air, and Air Sial— will operate 259 flights from eight major Pakistani cities to Jeddah and Madinah till June 9.
The government intends to facilitate thousands of Pakistani pilgrims through Hajj control rooms to ensure their pilgrimage remains free from hassles.
“We have established two control rooms: a main control room in Makkah and a branch office in Madinah to facilitate the pilgrims,” Muhammad Umer Butt, a religious affairs ministry spokesperson, told Arab News via phone from Madinah.
He said both control rooms in Makkah and Madinah would facilitate pilgrims 24 hours throughout the day. 
“All pilgrims are provided with a card they wear for identification, and on the back of each card, the control room numbers are listed so they can contact the control room by phone in case of any emergency or complain,” Butt explained. 
He said this year Pakistan has followed the Saudi government’s lead in digitizing Hajj through the Pak Hajj mobile application. Butt said the app provides all necessary information, including the ability to lodge complaints and track their status. 
“We have a live dashboard established in the control room under the complaint management system which showed all the details of complaints received and solved, movement of the pilgrims and other general queries,” he shared.
During the last seven days, the spokesperson said 195 complaints received through the Pak Hajj mobile app have been resolved, and 25 pilgrims who lost their way to their respective destinations in the holy cities were guided.
He added that the Loss and Found department located 111 bags and seven wheelchairs which were handed over to their owners. 
Butt said as Pakistani Hajj pilgrims were currently arriving in Madinah, the control room there was more active compared to the one in Makkah and was staffed with 54 personnel, and 18 Hajj assistants (Muaveneen). 
“These pilgrims will go to Makkah from May 17 after their eight-day stay in Madinah,” he said.
Butt said the Makkah control room was staffed with only eight people as Pakistani pilgrims have not started to arrive in the holy city yet.
“Along with this all adviseries issued by the Saudi government and Pakistani Hajj mission are also uploaded on the application through these control rooms,” he said.