MLMs in Pakistan trap young adults in debt

tribune.com.pk

Multi-level marketing (MLM) schemes are increasingly targeting young adults in Pakistan, especially recent graduates struggling to find jobs. These programs promise financial independence but often lead to debt and disillusionment, as profits mainly benefit those at the top. Despite laws against pyramid schemes, many MLMs operate in Pakistan, exploiting high youth unemployment and rising living costs. New recruits typically pay upfront for products, but profits come from recruiting others rather than actual sales, trapping participants in a cycle of investment. Regulatory enforcement remains weak, allowing fraudulent MLMs to thrive. Experts suggest that increased awareness and education about financial scams are necessary to protect young people from these deceptive practices.


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