‘She threw us into hell’: Pakistani victims of $1.9 million Ponzi scheme narrate their ordeal

In the file picture taken on May 13, 2019, a currency exchange vendor adjusts Pakistani currency notes as he waits for customers on a street in Karachi. (Photo courtesy: AFP/File)
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Updated 10 December 2022
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‘She threw us into hell’: Pakistani victims of $1.9 million Ponzi scheme narrate their ordeal

  • Victims, mostly women, say they deposited money as part of over 100 ballot committees run by Sidra Humaid
  • Humaid, the treasurer, has requested Karachi court to provide her security after declaring herself bankrupt

KARACHI: Anila Khan, a 33-year working woman living in the southern Pakistani city of Karachi, is scheduled to undergo surgery in March but her plans to go under the knife were shattered, when she came to know that she has been a victim of a multimillion ballot committee (BC) scam and has lost her deposit of Rs150,000 ($672), instead of receiving Rs600,000 ($2,688) for her surgery. 

Khan is one of hundreds of victims of the Ponzi scheme, which has so far not been officially reported to the authorities. 

The BC is an ages-old traditional method of saving outside of banking systems in which individuals pool money, often without any written record. Under the mechanism based on mutual trust, an individual receives the amount on their turn every month and it goes on until all the people involved are paid off their due sums. 

Khan, who had been a regular depositor since September, didn’t know that her plans would fall apart until she came across a “public apology” on the Facebook account of Sidra Humaid, the woman behind the now-famous Ponzi scheme, which has swindled hundreds of people, mostly women, of approximately Rs430 million ($1.93 million) as per the victims’ estimations. 

“She deceived me. She threw us into hell,” Khan told Arab News this week. “I am distraught and feel like being backstabbed.” 

She said she was not even sure of getting back the amount she had deposited in the last three months, let alone a sum of Rs600,000 she was supposed to get on her turn. 

In the Facebook post on November 27, Humaid informed her depositors she had “messed up” her committees and was now “practically bankrupt” with no means to pay the amount owed to them. 

“To solve the monthly payments issue I had to start more committees and that eventually resulted in a rolling loop that had no end,” she wrote. 

“Now I have to pay so much money that I cannot even calculate.” 

Her post dropped like a bombshell on members of over 120 committees she was running, with each member pitching in from Rs5,000 to Rs400,000. 

Humaid said if she was supported in her handcraft and home-cooked food businesses, she would be able to earn and pay off the amount. 

“If my Croise and Daily Bites are allowed to continue and my customers, friends and loved ones still support my businesses, then I would be able to earn and pay off my loans,” she stated in the post. 

But the treasurer did not have a plan or offer a timeframe to pay back people she had taken the huge sums of money from. 

Humaid also said she or her family had no properties, and they wouldn’t run away, but the victims said they came to know of her travel history, including a few trips abroad, and later found out she had vacated her home in Karachi as well. 

Humaid first began inviting people to join her BCs via Facebook some four years ago, according to victims. Members would deposit their amount into her bank account every month and each one of them would monthly receive a consolidated sum of BCs from the rest in their respective accounts on their turn. 

Humaid would also create a WhatsApp account of members for coordination after the launch of a BC. All this continued without any complaints from members until August this year, when Humaid started failing to keep her commitments. 

On December 6, she again took to Facebook and informed depositors she had requested a Karachi court to provide her security against what she called “continuous threatening calls, continuous visit of gunda (goon) sort of people” at her place. 

Humaid’s counsel, Kamran Alam, told the court that his client was being accused of doing an online financial fraud even though she neither sold any product nor used any advertisement on online platforms. 

To pursue their case, the victims said they created a WhatsApp group where people shared their distressing stories. 

The WhatsApp group has now turned into a “mourning meetup” group, with voice notes of women crying and desperately asking for help. 

“Sidra deceived us only after building trust for many years,” said Saima Gul, another victim of the Ponzi scheme. 

“I had several successful BCs over the last three years, which prompted me to start a committee of Rs30,000 ($133) for myself and another wherein my brother would deposit Rs300,000 ($1,335).” 

Gul said she was saving up money to perform Umrah, while her brother joined the BC to pay off the loan he had obtained for the construction of his home. 

“Not only do our problems remain unsolved, but we also practically lost Rs1.1 million ($4,896) of our hard-earned money,” she said. 

Another victim, Sonia Rashid, who contributed to a committee her share of Rs15,000 for two months, said when she listens to the stories of other victims, it makes her forget her own ordeal. 

“There is a woman being kicked out by her husband. Another lady said she was contemplating suicide,” Rashid told Arab News. 

“A working lady started BC of Rs50,000 ($222) per month for her marriage next November, she cries at night after disclosing it to her brother. You can’t imagine our pain. This lady has robbed us of our dreams.” 

Arab News tried reaching Humaid on her mobile phone, but it remained switched off on Thursday and Friday. 

Victims say Humaid occasionally comes online on WhatsApp groups to assure them of returning their money. Many of them are not even sure if they will get back their money in the absence of a written agreement. 

But Omar Memon, a noted lawyer in Karachi, said a formal agreement was not necessary for every financial matter. 

“As per the law, there can be a verbal agreement. All one needs is circumstantial evidence of the financial relationship,” he told Arab News. 

Memon suggested that the victims should immediately approach the Federal Investigation Agency (FIA), whose cybercrime and financial crimes wings deal with such issues. 

“The victims should also approach the State Bank of Pakistan (SBP), which may check the bank accounts [of Humaid] and freeze them,” he said. 

“The central bank will see if she has laundered any amount abroad and will also check the possibility of funding any proscribed organization.” 

When contacted, Shehzad Haider, a deputy director at the FIA cybercrime wing, said the agency had not received any complaint regarding the matter. 

Abid Qamar, an SBP spokesman, said such saving schemes prevail outside of the banking systems only due to a lack of knowledge on people’s part. 

“People should utilize the presence of the banking sector which offers various instruments for saving purposes,” he said. 

Editor’s note: The names of the victims have been changed on their request.


Pakistan eyes trade corridors with Belarus to enhance access to Central Asia, Europe

Updated 16 sec ago
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Pakistan eyes trade corridors with Belarus to enhance access to Central Asia, Europe

  • Communications Minister Abdul Aleem Khan arrives in Minsk on two-day visit to bolster trade, investment ties
  • Khan to sign new MoUs during visit, state-run media says amid Islamabad’s push for sustainable economic growth 

ISLAMABAD: Communications Minister Abdul Aleem Khan on Thursday stressed the importance of creating trade corridors between Pakistan and Belarus, state media reported, noting that they could be instrumental in helping both countries access markets in Central Asia and Europe. 

Pakistan and Belarus have moved closer to foster stronger trade and economic cooperation in recent months. Both countries marked 30 years of diplomatic ties last year. Belarus’s prime minister visited Islamabad in October 2024 to meet key Pakistani civilian and military officials to bolster economic cooperation. 

Khan arrived in Minsk on an official two-day visit to the country on Thursday. He met Belarusian Minister of Energy Denis Moroz and the country’s Transport Minister Alexei Lyakhnovich, state-run Associated Press of Pakistan (APP) reported. 

“He emphasized the importance of creating trade corridors between the two countries which could play a key role in facilitating access to Central Asian States through routes in Pakistan, China, Afghanistan, or Iran, ultimately opening up pathways to Eastern Europe,” APP reported. 

“Abdul Aleem Khan stated that these infrastructure projects would also be a strategic milestone.”

Khan highlighted the potential for “significant improvement” in the communications sector between both countries during his meeting with Belarusian ministers, APP said. 

It said the Pakistani minister is being hosted as a state guest in the eastern European country. He will have the opportunity to sign several new memoranda of understanding (MOUs) during his trip, APP said. 

Pakistan and Belarus agreed to boost cooperation in industry, media, tourism and other economic sectors during the eighth session of the Pakistan-Belarus Joint Ministerial Commission on Trade and Economic Cooperation held in February this year. 

Islamabad has aggressively pushed for trade and investment ties with regional allies such as China, Saudi Arabia, United Arab Emirates, Central Asian countries and others recently in its bid to escape a prolonged macroeconomic crisis. 

Pakistan has signed MoUs worth billions of dollars with businesses and entities in China, Saudi Arabia, UAE, Azerbaijan and other countries since last year to ensure sustainable economic growth driven by increasing exports and financial reforms mandated by the International Monetary Fund (IMF). 


Pakistan assumes Asian Cricket Council presidency, vows to accelerate sport’s global influence

Updated 03 April 2025
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Pakistan assumes Asian Cricket Council presidency, vows to accelerate sport’s global influence

  • Defending champions India are scheduled to host Asia Cup later this year in T20 format
  • ACC, governing body for cricket in Asia, includes Pakistan, India, Sri Lanka and Bangladesh

ISLAMABAD: Pakistan Cricket Board (PCB) Chief Mohsin Naqvi on Thursday assumed the presidency of the Asian Cricket Council (ACC), the board confirmed, vowing to enhance the sport’s global influence. 

The ACC is the governing body for cricket in Asia, established in 1983, to promote and develop the sport across the continent. It organizes major tournaments like the Asia Cup and works to improve cricket standards, provide financial support and strengthen ties between member countries including India, Pakistan, Sri Lanka and Bangladesh.

Sri Lanka held ACC’s presidency before Pakistan officially took over the post from it on Apr. 3, according to the PCB.

“In accordance with the decision of the Asian Cricket Council, Pakistan has officially taken over the presidency from Sri Lanka Cricket,” the PCB said in a statement. 

“Effective immediately, Pakistan will lead the council in its mission to promote and expand cricket across the Asian continent.”

It added that the ACC was “poised to strengthen and expand” cricket’s presence across Asia by fostering growth and unity within the sport.

Meanwhile, in a press release, the ACC quoted Naqvi as saying that he was honored to assume the regional cricketing body’s presidency.

“Asia remains the heartbeat of world cricket and I am committed to working with all member boards to accelerate the game’s growth and global influence,” he said.

“Together, we will unlock new opportunities, foster greater collaboration and take Asian cricket to unprecedented heights.”

The PCB chief also extended his sincere wishes to outgoing ACC president Shammi Silva from Sri Lanka for his leadership and contributions during his tenure. 

India will host the next edition of the Men’s Asia Cup cricket tournament in the T20 format in 2025 as a precursor to the T20 World Cup scheduled in the country in 2026. 

The 2023 edition, hosted by the PCB, was held in a “hybrid model” as India refused to travel to Pakistan and played their matches in Sri Lanka.

India are the defending Asia Cup champions, and have won three of the last four editions of the tournament. They beat Sri Lanka by 10 wickets in the final of last year’s 50-overs edition in Colombo.


Washington’s reciprocal tariff to have ‘mixed’ impact on Pakistan’s exports— analysts 

Updated 03 April 2025
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Washington’s reciprocal tariff to have ‘mixed’ impact on Pakistan’s exports— analysts 

  • United States is Pakistan’s largest export destination, importing $5.44 billion of Pakistan’s goods last year
  • Analysts say Pakistan exports will become cheaper than those offered by countries hit harder by tariffs

KARACHI: The impact of US President Donald Trump’s decision to impose a reciprocal tariff of 29 percent on Pakistan’s exports is likely to have a “mixed” impact, financial analysts said on Thursday, pointing out that the wide-ranging tariffs will make exports offered by Islamabad’s rivals also costlier. 
Trump announced the decision to impose sanctions on several countries on Thursday, defending the measures as necessary to address long-standing trade imbalances and what he described as unfair treatment of American goods abroad.
The US is Pakistan’s largest export destination, as it imported $5.44 billion of Pakistani goods last year, according to the State Bank of Pakistan (SBP). This fiscal year from July through February Pakistan earned $4 billion from its exports to the US, which registered a 10 percent increase over its $3.63 billion exports to the country in the same period last year. 
“The impact of these tariffs is expected to be mixed on Pakistan’s exports,” Samiullah Tariq, the group head of research and product development at the Pakistan Kuwait Investment Company Ltd., told Arab News. 
Last year, Pakistan’s total exports rose 11 percent to $30.7 billion from $27.7 billion compared to 2023, according to the Pakistan Bureau of Statistics (PBS).
Tariq said Pakistani goods would become cheaper than those offered by Bangladesh, China, Vietnam and Cambodia, on whom the Trump administration imposed higher tariffs. 
However, he explained that countries such as India, Jordan, Turkiye and certain Central American nations had been targeted with comparatively lower tariffs, making Pakistani goods costlier. 
 Washington has imposed tariffs of 37 percent, 34 percent, 46 percent and 49 percent on Bangladesh, China, Vietnam and Cambodia, respectively. It targeted India, Jordan and Turkiye with tariffs of 26 percent, 20 percent and 10 percent respectively. 
 
“Duties imposed on China, Cambodia, Indonesia, Vietnam and Bangladesh are higher than Pakistan, while duties imposed on India are 300bps lower than Pakistan,” Topline Securities, a Karachi-based brokerage firm, noted in a report to clients.

TEXTILE TO TAKE A HIT

However, Sana Tawfiq, the head of research at Arif Habib Ltd. said the tariff would test the mettle of Pakistan’s export sector. 

“About 90 percent of our total exports to the US account for textiles that are expected to take a hit,” she told Arab News. 

She said some food and cement industries are also expected to “feel the pressure.”

“To mitigate the impact, Pakistan must adopt a reciprocal and strategic approach, including reducing energy costs, negotiating tariff relief, and diversifying trade markets,” Tawfiq noted. 

Topline Securities also said Pakistani textile exports may bear the brunt of the tariff imposition. 

“Theoretically, due to Pakistan’s duty disadvantage with India, Pakistan textile exports may face some pressure,” the brokerage firm said. 

Trump’s decision is expected to set back Pakistan’s efforts to revive its economy with the help of the International Monetary Fund’s (IMF) bailout packages. 

The lender wants Islamabad to increase its revenues, attract foreign investments and enhance exports to cope with its longstanding balance of payment crisis.
 
As per Topline Securities’ report, Pakistan’s stock market closed Thursday’s session with the benchmark KSE-100 index gaining 0.96 percent to close at 118,938 points.
“Worries over 29 percent massive US reciprocal tariff levies on Pakistan and global equity selloff invited early session pressure,” Ahsan Mehanti, chief executive officer at Arif Habib Commodities Ltd., told Arab News. 
Pakistan may face increased competition in Europe as countries such as China, Vietnam and Bangladesh, hit harder with Washington’s tariffs, are expected to divert some of their exports from the US to European countries, Topline Securities said in its report.
 
Khurram Mukhtar, the patron-in-chief of the Pakistan Textile Exporters Association (PTEA), remained confident Pakistan would continue to enjoy a competitive edge over major textile-exporting countries to the US. 
“Despite the tariff adjustments, Pakistan will continue to maintain a competitive edge over major textile-exporting countries to the US, owing to its complete supply chain, quality standards and established trade relationships,” Mukhtar told Arab News. 


Pakistan fined again for slow ODI over-rate in New Zealand

Updated 03 April 2025
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Pakistan fined again for slow ODI over-rate in New Zealand

  • Pakistan players fined 5 percent of match fees for being one over short of target on Wednesday
  • Visiting team was two overs short, fined 10 percent after losing first ODI by 73 runs on Saturday

DUBAI, United Arab Emirates: Pakistan has been penalized for a slow over-rate against New Zealand in their second one-day international in Hamilton this week.

Match referee Jeff Crowe fined the Pakistan players 5 percent of their match fees after they were one over short of the target on Wednesday after the time allowances were taken into consideration. New Zealand won by 84 runs.

Pakistan captain Mohammad Rizwan “pleaded guilty to the offense and accepted the sanction, eliminating the need for a formal hearing,” the International Cricket Council said on Thursday.
It was the second consecutive match after which Pakistan was fined for a slow over-rate. 

The visiting team was two overs short of the target and fined 10 percent after losing the first ODI by 73 runs at Napier last Saturday.

The third and last ODI is at Mount Maunganui on Saturday.
 


Pakistan’s inflation rate dropped to 0.7 percent in March, lowest in six decades

Updated 03 April 2025
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Pakistan’s inflation rate dropped to 0.7 percent in March, lowest in six decades

  • Pakistan’s inflation rate stood at 1.5 percent in February and at 20.7 percent during March 2024
  • Prices of fresh fruits, eggs, sugar, chicken and readymade garments increased month-on-month

ISLAMABAD: Pakistan’s consumer price index (CPI) inflation rate dropped to 0.7 percent in March on a year-on-year basis, the country’s statistics bureau said on Thursday, the lowest in six decades amid signs of economic recovery. 

Pakistan’s inflation rate stood at 1.5 percent in February and 20.7 percent in March 2024, according to data shared by the Pakistan Bureau of Statistics (PBS) in its monthly review of price indices report. 

On a month-on-month basis, it increased by 0.9 percent in March as compared to a decrease of 0.8 percent in February. It increased by 1.7 percent in March 2024.

“CPI inflation general decreased to 0.7 percent on year-on-year basis in March 2025 as compared to 1.5 percent of the previous month and 20.7 percent in March 2024,” the PBS said. 

The commodities whose prices increased month-on-month included tomatoes (36.35 percent), fresh fruits (18.66 percent), eggs (14.92 percent), sugar (11.48 percent), chicken (10.87 percent), fresh vegetables (6.13 percent), butter (2.70 percent), neat (1.60 percent) and pulse moong (0.70 percent). 

While prices of non-food items that increased month-on-month include readymade garments (2.15 percent), tailoring (1.84 percent), liquified hydrocarbons (1.83 percent), cotton cloth (1.74 percent), accommodation services (1.47 percent), hosiery (1.33 percent), education (1.23 percent) and plastic products. 

Aggressive policy rate cuts by Pakistan’s central bank and a series of economic reforms by the government have led to a substantial decline in Pakistan’s annual inflation rate.

Pakistan’s inflation rate rose to a record high of 38 percent in May 2023 on account of surging food and fuel costs as Islamabad withdrew energy and fuel subsidies under a deal agreed with the International Monetary Fund (IMF) for a financial bailout package.

In a statement released by the Prime Minister’s Office (PMO), Shehbaz Sharif said the reduction in prices was proof of the “right direction” of the government’s economic policies. 

“Currently, the inflation rate in the country is at its lowest level in six decades,” Sharif was quoted as saying by his office.

“This year even during the month of Ramadan, the inflation rate was recorded at its lowest level in the last several decades,” he added.