The Federal Board of Revenue (FBR) has confirmed an over-invoicing of Rs.70 billion disguised as the import of solar panels. During a briefing tothe Senate Standing Committee on Finance, FBR officials revealed provenmoney laundering in this case.
They disclosed that 63 importers were implicated, leading to theregistration of a First Information Report against two major importersunder anti-money laundering laws. The officials noted that funds wererouted abroad through five commercial banks and, in accordance withanti-money laundering and terror financing laws, emphasized the possibilityof repatriating laundered money to Pakistan due to the UAE’s agreement.
State Bank of Pakistan (SBP) officials informed the committee about actionstaken against bank officials involved in the scam. Senator Musadik Malikexpressed skepticism, suggesting that the actual money laundering couldamount to $2.5 billion rather than the reported Rs. 70 billion. Thecommittee urged the FBR to submit a detailed report on actions againstimplicated government and bank officials, with FBR officials stating theirsubmission of a request to the Federal Investigation Agency (FIA) toinclude certain individuals in the scam on the exit control list (ECL).
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Notably, an audit by the Directorate of Post Clearance Audit Customs Southuncovered the over-invoicing at the import level, involving 63 importerswho filed 6,232 goods declarations, importing solar panels at significantlyinflated prices. Suspicions lingered about a substantial portion of fundsbeing illegally transferred out of the country.