The Securities and Exchange Commission of Pakistan (SECP) has issued an important public notice for borrowers of the UdharPaisa and Barwaqt digital lending apps. The SECP announced a court-supervised process for loan settlement and credit record correction.
The notice follows directions from the Islamabad High Court. Under these orders, both lending companies are now being managed through liquidation proceedings.
The SECP said that Advocate Syed Ishfaq Hussain Shah has been appointed as the Official Liquidator for both companies. His appointment was made through separate court orders issued on December 24, 2025.
This process applies to M/s. Microcred Financial Services Limited, which operated UdharPaisa, and M/s. Seedcred Financial Services Limited, which operated Barwaqt.
According to SECP, borrowers can still repay their outstanding loans. They can also request updates to their credit records after settlement. However, payments must follow the official procedure approved by the court.
For UdharPaisa borrowers, repayment must be made into the official liquidation account of Microcred Financial Services Limited at Bank Makramah Limited. Borrowers must first obtain credit reports from Tasdeeq Information Services Limited and DataCheck Limited. They must then pay the higher outstanding amount listed in the reports.
The payment must be made only through physical bank branches. Online transfers, mobile wallets, and digital payment apps are not accepted.
Borrowers are required to complete deposit slips carefully. They must include their CNIC number, full name, contact details, and payment purpose. A stamped bank receipt must be kept as proof.
After payment, supporting documents must be emailed to the Official Liquidator. These include a CNIC copy, deposit receipt, and both credit reports. Once verified, the updated settlement record will be sent to credit bureaus within four weeks.
The same process applies to Barwaqt borrowers. Payments must be deposited into the official Seedcred Financial Services Limited liquidation account through Bank Makramah branches only.
The SECP has also issued a strict warning. No agent, third party, or individual is authorized to collect payments on behalf of either company.
The regulator emphasized that only the Official Liquidator, under Islamabad High Court supervision, can handle recoveries. Payments made outside the designated bank accounts will not be accepted for credit clearance.
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The SECP advised all borrowers to follow official instructions carefully to ensure successful loan settlement and credit history restoration.
