Nepal probe spurs regulatory watch on InDrive’s Pakistan operations

2026-02-10 - 09:46

ISLAMABAD – An ongoing controversy in Nepal over the alleged misuse of foreign direct investment (FDI) arrangements linked to a local partner associated with ride-hailing platform InDrive has triggered calls for heightened regulatory vigilance in other markets where the company operates, including Pakistan. The issue surfaced after reports in Nepal alleged that Hemraj Dhakal, Vice Chairman of Nepal’s IME Group, structured transactions that enabled the outflow of around USD 4 million (approximately NPR 570 million or PKR 1.1 billion) under the cover of FDI-related mechanisms. The matter is currently under investigation by Nepalese authorities. Financial and regulatory experts say the case underscores potential structural vulnerabilities that can emerge when multinational digital platforms operate through layered corporate, licensing, and investment frameworks, particularly in jurisdictions with foreign exchange controls and evolving oversight of digital services. Industry observers argue that developments in Nepal warrant a preventive review by Pakistani regulators, including the State Bank of Pakistan (SBP), Federal Investigation Agency (FIA), Securities and Exchange Commission of Pakistan (SECP), and the Federal Board of Revenue (FBR), given InDrive’s operational presence in major cities across Pakistan. Experts suggest that regulators may examine whether InDrive operates in Pakistan through a locally incorporated subsidiary, a foreign branch, or third-party contractual arrangements, and how ownership, control, and decision-making authority are structured. Other areas of focus could include the remittance of funds classified as foreign investment, technology fees, service charges, commissions, or royalties, and whether such transfers comply with applicable regulatory permissions. Analysts also point to the need to assess how revenues generated in Pakistan are reported and taxed, and whether commission-based or revenue-sharing models could function as indirect capital outflows without triggering enhanced regulatory scrutiny. They emphasize that these considerations are preventive in nature and do not imply any wrongdoing in Pakistan. Regulatory experts note that InDrive’s global corporate structure is relevant for due diligence. Public records show that SUOL Innovations Ltd., a Cyprus-registered entity, acts as the parent company holding intellectual property rights for InDrive’s operations worldwide, with local entities functioning under licensing or service arrangements. While such structures are common among multinational technology firms, experts caution that they can result in significant cross-border financial flows that require transparency, proper valuation, and regulatory oversight, particularly in countries managing FATF compliance obligations. The allegations in Nepal remain under investigation, and no final findings have been announced. At the time of publication, neither InDrive nor the individuals named in the Nepalese reports had issued a public response.