The Securities and Exchange Commission of Pakistan has released a mandatory public notification establishing a structured, court-supervised mechanism for borrowers of the UdharPaisa and Barwaqt digital lending applications to clear their outstanding liabilities and repair their national credit records. This regulatory intervention materializes following explicit enforcement orders issued by the Islamabad High Court, which placed the parent corporate operators, Microcred Financial Services Limited and Seedcred Financial Services Limited, under formal corporate winding-up and liquidation procedures. To oversee the recovery ledger, the judicial system has designated Advocate Syed Ishfaq Hussain Shah as the Official Liquidator for both corporate entities through separate legal decrees dated December 24, 2025.
Under the judicially managed asset recovery architecture, active borrowers of both applications are legally permitted to settle their running debts and restore their credit standings, provided they adhere strictly to specific bank transmission protocols. For individuals with outstanding obligations to the UdharPaisa application, the clearance process demands that consumers first generate formal credit updates from both Tasdeeq Information Services Limited and DataCheck Limited. Borrowers must evaluate both data sheets, isolate the higher outstanding valuation reported between the two bureaus, and deposit that precise sum directly into the corporate liquidation pool at Bank Makramah Limited under the specific corporate title of Microcred Financial Services Limited In Liquidation.
A mirroring recovery protocol has been activated for consumer accounts tied to the Barwaqt loan application. Debtors looking to eliminate their liabilities with Seedcred Financial Services Limited are similarly required to obtain independent data histories from the recognized credit registries, isolate the maximum outstanding debt value displayed, and transfer the exact matching amount to the designated liquidation repository at Bank Makramah Limited under the account title of Seedcred Financial Services Limited In Liquidation. The apex financial supervisor emphasized that using these exact banking coordinates represents the exclusive legal avenue for consumers to formalize debt resolution during this receivership phase.
Crucially, the regulatory directive institutes a severe restriction on transaction channels, completely banning the use of mobile wallets, third-party digital payment software, or standard internet banking bank transfers. Every single payment must be physically processed over the counter at brick-and-mortar commercial bank branches across the country, where depositors are required to carefully fill out paper deposit slips containing their Computerized National Identity Card numbers, full legal names, active contact metrics, and explicit payment justifications. Following cash or instrument submission, borrowers must secure a stamped bank counterfoil receipt as baseline forensic proof of payment, which must then be emailed along with identity documents and credit files to the respective liquidation email endpoints.
The apex regulator and the liquidation office issued a strict warning to the general public confirming that no individual collector, independent recoveries agent, or third-party financial service provider retains any authorization to collect funds, negotiate discounts, or settle assets on behalf of either distressed loan firm. Only the court-appointed liquidator, working under direct judicial oversight from the high court, possesses the statutory right to supervise recoveries and coordinate with credit bureaus, which typically takes up to four weeks post-verification to update public records. Any alternative transfers processed through unofficial external channels or mobile apps will be treated as invalid, leaving the debtor’s legal liability active and their credit profile compromised.
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