FBR flags tax evasion in Sindh solar imports

• Report highlights trade-based money laundering in solar kit imports
• Senate panel fumes over absence of economic minister, provincial secretaries

ISLAMABAD: Another episode of massive under-invoicing for tax evasion and trade-based money laundering through the import of solar kits came to light before a parliamentary committee, which expressed serious displeasure over the continued absence of the minister for economic affairs and provincial secretaries.

The Senate Secretariat released selected operational parts of a report presented to the Senate Standing Committee on Economic Affairs by the Federal Board of Revenue (FBR), detailing grave irregularities in the import of solar home system kits under the Sindh Solar Energy Project (SSEP).

The report revealed that solar kits were declared at $16-$23.4 per unit for tax purposes by contractors, while payments of up to $112.44 per unit, or about 700 per cent higher, were made by the World Bank for the SSEP, reflecting a difference of $89-96 per unit. Investigations are underway into trade-based money laundering, tax evasion, fund layering and violations of foreign exchange rules.

According to the report, M/s Beyond Green, Karachi, imported 10 consignments comprising 200,968 solar home system units between December 2024 and July 2025 through clearing agent M/s Vista Impex. The goods were declared under HS Codes 8501.7210 and 8501.711, attracting zero customs duty, 18pc sales tax, 3pc additional sales tax and zero income tax. Declared unit values ranged from $16.1 to $23.4, and four consignments were cleared through the Green Channel.

Subsequent verification revealed that the goods declarations (GDs) submitted to the Sindh government were either fake or tampered with, a fact officially conveyed on Oct 9, 2025. Further investigation showed that the same kits were supplied to the Sindh government at manifold higher prices.

Official contracts under the SSEP with M/s Shenzhen LEMI Technology Development Co Ltd, China, revealed a contractual price of approximately $112.44 per kit, excluding duties and taxes. The World Bank reportedly paid this amount directly to the supplier, the FBR report said.

For tax purposes, the transactional value was worked out at $103.08 per unit, leading to the forwarding of 10 contraventions to customs adjudication authorities. Show-cause notices have been issued and the matter is pending adjudication.

The Senate committee was inf­or­med that fake invoices amounting to $12.5 million were also generat­­ed. In addition, evidence suggested third-party remittances routed through UAE-based entities, raising alarms of trade-based money laundering, foreign exchange violations and fund layering. The case has been referred for proceedings under the Anti-Money Laundering Act 2010, while a comprehensive sales tax audit has been recommended.

The committee was told that the SSEP implementation period ended on July 31, 2025, but around 30,000 solar kits out of 200,000 could not be distributed within the planned period and would now be handled under a separate arrangement.

Following the identification of discrepancies, the Sindh cabinet had on Dec 1, 2025 referred the matter to the Enquiries and Anti-Corruption Establishment (EACE). A forensic audit has also been approved and is underway, while the National Accountability Bureau (NAB) has taken cognisance of the case and is actively investigating.

On these revelations, committee chairman Saifullah Abro asked whether any suspensions of suspected officials had taken place and was informed that no suspensions had occurred so far. He directed that a letter be written to the chief minister to ensure that all individuals involved were held accountable.

Minister’s absence

Earlier, the Senate panel expressed sharp criticism over the continued absence of Minister for Economic Affairs Ahad Khan Cheema and senior bureaucrats, as well as the participation of junior officers from provincial governments, terming it a serious disregard for parliamentary oversight.

An additional secretary from the Economic Affairs Division informed the committee that the minister was attending the World Economic Forum in Davos. The explanation failed to satisfy the senators, with PPP Senator Waqar Mehdi remarking that he did not recall the minister ever attending a committee meeting and demanding that the minister’s chair be removed.

Chairman Saifullah Abro reminded the meeting that parliamentary rules were explicit, stating that the membership of a committee member or the minister could be cancelled in case of absence on three occasions without prior notice.

“If the minister wants to increase corruption, then he should definitely not be in the committee, but if he wants to stop corruption, then he should come to the committee,” he said, directing that a message be conveyed to the minister that he had not been attending the panel for two years.

“We are not removing the minister’s chair, but tell him that this behaviour is not good,” Senator Abro said.

During the meeting, agenda items related to Khyber Pakhtunkhwa projects were postponed and provincial officers were asked to leave after it emerged that officials below grade-20 had been deputed to represent the province.

The committee decided that a formal letter be written to the KP chief secretary to ensure that provincial secretaries attend the next meeting, failing which the matter would be referred to the Privileges Committee.

Published in Dawn, January 22nd, 2026

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