‘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 issues fresh monsoon flood alert as deaths rises to 64 in over a week

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Pakistan issues fresh monsoon flood alert as deaths rises to 64 in over a week

  • New rainfall system threatens Pothohar, central and southern Punjab, KP provinces 
  • NDMA warns of glacial floods, landslides as rivers expected to swell across country

ISLAMABAD: Pakistan’s disaster and weather authorities issued fresh flood warnings on Thursday as new monsoon rains are expected in parts of the Punjab and Khyber Pakhtunkhwa provinces, with the national death toll from rain-related incidents rising to 64 in just over a week.

A weather system is currently active over Chakwal, Talagang, and Mianwali districts and is expected to bring rain, wind and thunderstorms to areas including Khushab, Sargodha, Bhakkar, Dera Ismail Khan and Lakki Marwat in the next two to four hours, the Pakistan Meteorological Department (PMD) said in an advisory on Thursday morning.

“Public is advised to take precautionary measures during the weather activity accordingly,” the PMD said in a statement issued from its Islamabad office.

Separately, the Punjab Disaster Management Authority (PDMA) also warned of a fresh spell of monsoon rains across the province from July 5 to 10, with heavy downpours expected to trigger flash flooding, especially in low-lying and river-adjacent districts.

“The second monsoon spell will begin from July 5 across Punjab,” the PDMA said in an alert, listing expected rains in Rawalpindi, Murree, Attock, Chakwal, Lahore, Faisalabad, Sargodha, Bahawalpur, and D.G. Khan among other districts. 

“All relevant departments have been issued preemptive alerts on the instructions of Punjab Chief Minister Maryam Nawaz,” it added.

The warning comes as Pakistan’s National Disaster Management Authority (NDMA) confirmed in a statement on Wednesday that at least 64 people, including 45 children and 31 women, had been killed and over 113 injured in rain-related incidents since June 26.

Khyber Pakhtunkhwa province accounted for 22 deaths, followed by Punjab with 21, Sindh with 15, and Balochistan with five, the NDMA said.

The authority has issued impact-based alerts highlighting the risk of urban flooding, flash floods, landslides and glacial lake outburst floods (GLOFs) across northern regions like Gilgit-Baltistan and KP as well as hill torrents in DG Khan and Rajanpur.

“The National Emergencies Operation Center has issued multiple alerts in light of forecasted severe weather conditions expected from 2nd to 8th July 2025,” the NDMA said.

In the country’s mountainous north, especially in Gilgit-Baltistan, high temperatures have accelerated glacier melt, compounding the risk of sudden floods and landslides in narrow valleys and near vulnerable glacial lakes, the authority added.

“Tourists are advised against visiting high-altitude and glacial regions during this period,” the NDMA warned, instructing municipal and district administrations to clear stormwater drains, activate emergency response teams and prepare for possible evacuations.

Pakistan, home to over 240 million people, is consistently ranked among the countries most vulnerable to climate change. In 2022, record-breaking monsoon rains and glacier melt caused catastrophic floods that affected 33 million people and killed more than 1,700.

In its alert on Thursday, the PDMA specifically warned of urban flooding in northern and central Punjab, while the PMD warned of localized thunderstorms and strong winds hitting key agricultural and urban districts over the next 48 hours.

The authorities have urged the public to stay indoors during thunderstorms, avoid unnecessary travel and keep children away from electricity poles and waterlogged areas.

For emergencies, the PDMA advised citizens to contact its helpline 1129.


Pakistani’s Bioniks fits first prosthetic limb on Gaza child survivor Sidra

Updated 03 July 2025
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Pakistani’s Bioniks fits first prosthetic limb on Gaza child survivor Sidra

  • Pakistani startup provides arm to young girl through Jordan partnership as part of Gaza amputee support mission
  • Founded in Karachi, Bioniks specializes in low-cost, customizable prosthetics using 3D printing and smart sensors

KARACHI: Pakistani health-tech Bioniks has successfully fitted its first prosthetic limb in Gaza for a young girl injured in the ongoing Israel-Hamas war, the firm said on social media on Thursday, marking the start of its broader effort to support amputees in the besieged territory.

The company said the fitting was made possible through its partnership with Mafaz, Bioniks’ official collaborator in Jordan. The recipient, Sidra, lost her arm during the war and now becomes the first beneficiary of Bioniks’ long-term humanitarian initiative aimed at war victims in Gaza.

“This marks the beginning of Bioniks’ mission to support amputees in Gaza,” the company said in a statement posted to X on Thursday, adding that Sidra’s journey “reflects the resilience of so many in Gaza.”

Bioniks said it hopes to give survivors “mobility, confidence, hope, dignity, and independence ... in a place where conflict has taken so much.”

Bioniks did not specify how many Gaza patients it plans to support or the timeline for future fittings but said its mission will be sustained and scaled in coordination with regional partners.

Founded in Karachi, Bioniks specializes in low-cost, customizable prosthetics using 3D printing and smart sensors. It has gained international recognition for its work with children and war survivors across Pakistan, and has begun expanding its outreach to conflict zones in the region.

The latest war in Gaza began on October 7, 2023, when Hamas carried out a cross-border attack on Israeli communities, killing around 1,200 people and seizing 251 hostages according to Israeli tallies. Israel has since been carrying out a devastating air and ground assault on Gaza, whose health ministry says the offensive has killed over 56,000 Palestinians, most of them women and children, and tens of thousands more have been injured. The fighting has displaced nearly 80 percent of the population and decimated the strip’s already fragile health infrastructure.

Aid organizations have widely reported a growing number of amputations, especially among children, due to Israeli airstrikes and the collapse of trauma care. UNICEF estimates that between 3,000 and 4,000 children in Gaza have had one or more limbs amputated. The besieged enclave is now home to more child amputees per inhabitant than anywhere else in the world.

Bioniks said its goal is to reach more children and adults in Gaza with personalized prosthetic limbs and follow-up care.

“Bioniks believes that no one should be left behind when it comes to mobility and dignity,” the company said in the press release. “Through this initiative, our goal is to reach more children and adults affected by war with customized prosthetic limbs and long-term care.”

The company has previously worked with Pakistani hospitals and rehabilitation centers to provide smart prosthetics to underprivileged children and adults, often using crowd-funding and donor support to cover costs.


Pakistan central bank reserves rise to $14.51 billion, surpass IMF target

Updated 03 July 2025
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Pakistan central bank reserves rise to $14.51 billion, surpass IMF target

  • Forex reserves surge by over $5 billion in FY25, import cover and debt metrics improve
  • Reserves bolstered by exports, remittances, and investment and not new borrowing

KARACHI: Pakistan’s central bank foreign exchange reserves rose to $14.51 billion by the end of June, an increase of $5.12 billion over the previous fiscal year, the State Bank of Pakistan (SBP) said on Wednesday, marking a key milestone as the country closed out its 2024-25 financial year.

The new figure exceeds the International Monetary Fund’s (IMF) June 2025 reserves target under Pakistan’s ongoing $7 billion Extended Fund Facility (EFF), and reflects a significant turnaround in the country’s external account after years of balance-of-payments stress.

Pakistan’s forex reserves stood at $9.39 billion at the end of FY24, and have now climbed to their highest level since early 2018. The increase also pushes Pakistan’s import cover — a key indicator of external sector strength — to 2.5 months, up from 1.7 months a year ago and less than one month during the 2022-23 crisis period.

The rise in reserves was driven largely by non-debt inflows, including improved exports, growth in IT services, higher foreign direct investment, and record remittances from overseas Pakistanis, according to government finance adviser Khurram Schehzad.

“Reserves rising. Debt falling. Stability strengthening,” Schehzad posted on X, formerly Twitter, noting that the central bank’s reserves now exceed the IMF’s end-June target.

He added that the debt-to-GDP ratio has declined from 75 percent in FY23 to an estimated 69 percent in FY25, reflecting improved macroeconomic management.

Pakistan entered FY25 facing a challenging external financing outlook, with over $20 billion in debt repayments due during the year. However, a combination of improved current account discipline, fiscal consolidation, and bilateral inflows helped ease pressure on the rupee and shore up confidence in the central bank’s position.

Pakistan’s economy grew an estimated 2.4 percent in FY25, up from 0.3 percent in the previous fiscal year, as inflation cooled and the rupee stabilized after a steep depreciation cycle in 2022-23. The IMF has encouraged Pakistan to maintain exchange rate flexibility and strengthen domestic revenue collection in order to ensure macroeconomic resilience.

The improvement in external buffers is likely to boost investor sentiment at a time when the government is stepping up efforts to attract foreign direct investment and privatize state-owned enterprises.

Further inflows, particularly from Gulf countries and China, are expected in the first half of FY26, which could help Pakistan meet its gross financing needs without resorting to expensive commercial borrowing.

Despite the progress, risks remain. Pakistan’s external debt servicing burden remains high, and its ability to maintain reserve adequacy will depend on continued inflows and fiscal discipline.

Still, the end-June reserve level marks a notable turnaround from just two years ago when Pakistan was on the brink of default and foreign reserves had fallen below $4 billion, barely enough for three weeks of imports.

With reserves now exceeding $14.5 billion, the country has gained critical breathing space to manage its external obligations and restore market confidence.


From Riyadh to Rawalpindi: How Pakistani women are redefining the abaya

Updated 03 July 2025
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From Riyadh to Rawalpindi: How Pakistani women are redefining the abaya

  • Gulf trends reshape local styles as designers blend Middle Eastern cuts with Pakistani preferences and flair
  • Young women are turning abayas into personal statements, helped by social media and global fashion cues

ISLAMABAD: In Pakistan, the abaya is undergoing a quiet but striking transformation. Long associated with uniform modesty and religious conservatism, this traditional black cloak worn by many Muslim women is now being reimagined by a new generation — one that blends cultural heritage with bold personal expression, often inspired by the glitz and fluidity of Gulf fashion capitals.

Originally worn across the Arabian Peninsula, the abaya has deep roots in Bedouin dress and later became a symbol of modesty under Islamic influence. In Pakistan, it gained prominence in the 1980s and 1990s, a period marked by rising religiosity, increased migration to Gulf countries, and the influence of satellite television beaming in images of Arab fashion.

For decades, black reigned supreme: functional, symbolic, and widely accepted.

But today, the abaya has become more than a religious garment. It is now a medium of fashion, expression and cultural exchange.

“The Middle East has turned abayas into a fashion trend,” said Nimra Saleem, a designer who is preparing to launch a dedicated abaya brand. 

“The Gulf states introduce new cuts, designs, colors, and fabrics every year. So, the cuts of my abayas, the inspiration was taken from Saudi Arabia itself, and I made such cuts that are not available in Pakistan yet.”

Nimra Saleem, a designer, is making sketches in Islamabad, Pakistan, on June 26, 2025. (AN Photo)

Saleem grew up in Saudi Arabia and returned to Pakistan six years ago to pursue a degree in textile design at the National College of Arts in Rawalpindi. Her thesis focused on women migrating from the Gulf, and she explored how Arabic aesthetics could merge with Pakistani tastes. Now, the abaya brand she plans to launch will reflect this evolving sensibility, she hopes. 

“Initially, abayas here were limited to plain black, but now people are using them as a form of self-expression, wearing them in vibrant colors, pairing them with colorful hijabs, and choosing fabrics like georgette and silk. Printed abayas are also becoming more popular.” 

To accommodate Pakistan’s climate while staying true to Gulf-inspired styles, Saleem uses lightweight fabrics similar to those worn in the Middle East.

“These abayas can be worn in Pakistan too because they’re very weather friendly,” she said.

SOCIAL MEDIA INFLUENCE

The cultural pull of the Gulf, particularly from style hubs like Dubai and Jeddah, continues to influence aesthetics across South Asia, especially among upwardly mobile urban Pakistanis. Social media has only amplified that impact, offering a steady stream of Gulf fashion influencers and modestwear labels that are increasingly global in reach.

For designers like Abdul Rahman, a boutique owner in Rawalpindi with a strong social media following, the shift in tastes is undeniable.

“Over the past five years, trends have changed,” he said. “We design abayas according to customer choice, some like party wear, some need casual wear, and some prefer normal embroidery.”

Rahman’s business, which once catered mostly to domestic buyers, now processes online orders from across the globe.

“We get a lot of orders from South Africa, the United Kingdom, and UAE because abayas there are costly,” he explained.

His store offers options ranging from Rs3,000 ($11) to Rs20,000 ($71), making Pakistani-made garments more affordable for diaspora communities seeking modestwear.

This intersection of modesty and style also resonates with many young women in Pakistan, who say the abaya is no longer seen as restrictive, but adaptable.

“The time is changing, and people are understanding that it’s not about the black color,” said Areeba Faisal, a university student in Islamabad. “It’s about modesty and how you carry yourself.”

While she personally favors black abayas for most occasions, she appreciates the variety now available.

“On some occasions, I prefer to wear this kind of stuff— colored and embroidered abayas,” she said. “Islam does not mandate wearing a specific type of gown, nor does it require it to be black or free of embellishments.”

Another student, Humaira Javeed, echoed that view. “Everything evolves with time— including clothing. Abayas are no exception,” she said.

She prefers light colors, such as skin tones or pastels, but still sees black as modern and versatile. For her, wearing an abaya is more cultural than religious, and there’s space within tradition for creativity.

“It’s not something to be stigmatized in any way,” she added.

Indeed, the new wave of abaya culture in Pakistan reflects broader conversations about identity and modernity in the Muslim world.

In places like Saudi Arabia and the UAE, where strict dress codes once mandated uniform black cloaks, fashion-forward abayas now come in soft hues, adorned with intricate embroidery, pleats, lace, and avant-garde silhouettes. 

These trends are finding fertile ground in Pakistan, where decades of exposure to Gulf culture through migration, media, and remittances have reshaped everything from food to fashion.

“Girls expressing themselves through abayas inspired me to create pieces that prove modesty can be just as fashionable and trend-aware,” said Saleem. “You can be modest, and you can still be in trend.”


Blast claimed by Daesh kills four in northwest Pakistan

Updated 03 July 2025
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Blast claimed by Daesh kills four in northwest Pakistan

  • Officials were traveling in a car in Khyber Pakhtunkhwa province when attack happened in a market in Bajaur city
  • Around 300 people, mostly security officials, have been killed in attacks in KP and Balochistan provinces since start of year

PESHAWAR: An explosion in northwest Pakistan killed at least four local government officials and police Wednesday, an officer told AFP, in an attack claimed by a branch of the Daesh group.

“One senior government official, along with another government official and two police officers, were killed in the attack. Eleven people were wounded,” said Waqas Rafiq, a senior police official stationed in Bajaur, a city near the border with Afghanistan.

The officials were traveling in a car in Khyber Pakhtunkhwa province when “the attack happened in a market in Bajaur city,” Rafiq added.

Hours later the IS-K group of Daesh claimed to have detonated an explosives-laden moped that targeted the vehicle in which the officials were traveling.

The deadly blast came four days after 16 soldiers were killed in the same province in an attack claimed by the Pakistan Taliban, a group which is very active in the area.

Around 300 people, mostly security officials, have been killed in attacks since the start of the year by armed groups fighting the government in both Khyber Pakhtunkhwa and Balochistan provinces, according to an AFP tally.

Last year was the deadliest in a decade for Pakistan, with a surge in attacks that killed more than 1,600 people, according to Islamabad-based analysis group the Center for Research and Security Studies.

Pakistan has witnessed a sharp rise in violence in its regions bordering Afghanistan since the Taliban returned to power in Kabul in 2021, with Islamabad accusing its western neighbor of allowing its soil to be used for attacks against Pakistan — a claim the Taliban denies.