ISLAMABAD: The Islamabad High Court has placed a defaulter online loan app under formal liquidation and appointed an official liquidator to recover outstanding loans from nearly 750,000 defaulters.

Syed Ishfaq Hussain Shah, a tax lawyer, as official liquidator has been given exclusive authority to manage the affairs of M/s Seedcred Financial Services Limited — the parent company of digital lending application ‘Barwaqt – Loan Money Cash’ — under the Companies Act, 2017.

A public notice issued by the liquidator stated that defaulters have lost access to online transactions, bank accounts, credit cards, and business dealings with commercial banks due to their credit history being reported to credit bureaus.

The liquidator has now offered a mechanism for defaulters to clear their credit records.

According to the notice, borrowers must first obtain their credit reports from Tasdeep Information Services Limited and DataCheck Limited.

They will then be required to deposit the higher of the two outstanding amounts mentioned in these reports into a designated bank account.

The designated account is maintained with Bank Makramah Limited.

Published in Dawn, May 20th, 2026