Authorities have identified large-scale under-invoicing, tax evasion and suspected trade-based money laundering in imports of solar home system kits for the Sindh Solar Energy Project (SSEP).
The Senate Secretariat released selected operational portions of a report submitted to the Senate Standing Committee on Economic Affairs by the Federal Board of Revenue (FBR), detailing serious irregularities in the import and pricing of solar kits.
According to the report, contractors declared solar kits at prices ranging between $16 and $23.4 per unit for customs clearance, while the World Bank paid up to $112.44 per unit for the same kits under the SSEP, indicating a price difference of $89 to $96 per unit, or nearly 700 percent higher than declared values.
The report said investigations were under way into trade-based money laundering, tax evasion, fund layering and foreign exchange violations.
FBR informed the committee that 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 consignments were declared under HS Codes 8501.7210 and 8501.711, attracting zero customs duty, 18 percent sales tax, 3 percent additional sales tax and zero income tax. Four consignments were cleared through the Green Channel.
However, verification later revealed that the goods declarations submitted to the Sindh government were fake or tampered, a fact officially communicated on October 9, 2025. Further investigation showed that the same solar kits were supplied to the Sindh government at significantly higher prices.
Official contracts under the SSEP with M/s Shenzhen LEMI Technology Development Co Ltd, China, showed a contractual price of around $112.44 per kit, excluding duties and taxes. The World Bank reportedly made payments directly to the supplier at this rate.
For tax assessment purposes, FBR worked out a transactional value of $103.08 per unit, leading to the issuance of 10 contraventions referred to customs adjudication authorities. Show-cause notices have been issued and the case remains pending.
The committee was further informed that fake invoices worth $12.5 million were generated, while evidence also pointed to third-party remittances routed through UAE-based entities, raising red flags over money laundering and fund layering. The case has been referred for proceedings under the Anti-Money Laundering Act, 2010, and a comprehensive sales tax audit has been recommended
FBR told the committee that the SSEP formally ended on July 31, 2025, but around 30,000 solar kits out of 200,000 could not be distributed within the project timeline and would now be handled separately.
Following the revelations, the Sindh cabinet on December 1, 2025 referred the matter to the Enquiries and Anti-Corruption Establishment (EACE). A forensic audit is under way, while the National Accountability Bureau (NAB) has also taken cognisance of the case.
Committee chairman Saifullah Abro asked whether any officials had been suspended following the findings and was informed that no suspensions had taken place so far. He directed that a letter be written to the chief minister to ensure accountability of all individuals involved.
Earlier, the Senate panel expressed strong displeasure over the continued absence of Minister for Economic Affairs Ahad Khan Cheema, senior bureaucrats and provincial secretaries, terming it a serious violation of parliamentary oversight.
An additional secretary from the Economic Affairs Division told the committee that the minister was attending the World Economic Forum in Davos, an explanation that failed to satisfy the members.