Pakistan fintech sector faces disruptions amid Rs. 120 billion gambling crackdown

Pakistan’s fintech sector is experiencing significant disruptions following a major crackdown by the Federal Investigation Agency (FIA) on illegal online gambling networks. Investigations have uncovered approximately Rs. 119.93 billion (roughly $433.5 million) being routed through digital payment channels. Criminal syndicates reportedly exploited local branchless banking systems, using shell companies and disguised peer-to-peer transactions to funnel money for various online gambling platforms.

The crackdown has led to processing delays and settlement issues for merchant transactions across several payment intermediary firms, including SWICH, Simpaisa, ajarPay, RapidPay, Zero Technologies, and Finza Tech. International payment processor dLocal has also flagged processing issues involving Easypaisa, indicating the impact may affect foreign merchants.

Additionally, JazzCash has reportedly closed over 100 aggregator accounts due to intense scrutiny. The FIA has filed an FIR against eight suspects under the Foreign Exchange Regulation Act and the Pakistan Penal Code, with two primary suspects currently in custody.