Rs47 billion money laundering in solar panel imports surfaces

ISLAMABAD:  Pakistan’s Senate committee on finance is investigating a case of alleged money laundering of Rs47 billion by two solar panel importers in Peshawar, the committee chairman confirmed on Friday.

Senator Saleem Mandviwalla, who is also the chairman of Senate Standing Committee on Finance told senior journalist Rauf Klasra that the committee had received a complaint that the two entities imported solar panels from China and deposited Rs47 billion in Pakistani banks, but made the payments in the UAE and Singapore, violating foreign exchange regulations.

He said the committee might refer the matter to the National Accountability Bureau (NAB) and the Federal Board of Revenue (FBR) to take appropriate action against those involved.

He said the FBR had previously filed an unsatisfactory report that overlooked this serious breach.

The case is part of a larger scandal of over-invoicing and money laundering in solar panel imports that was uncovered by the Directorate of Post Clearance Audit Customs South in July.

دوستوں نے اصرار کیا پشاور کی دو مشکوک پارٹیوں کی طرف سے 47 ارب روپے بوریوں میں بھر کر بنکوں میں کیش ڈیپازٹ کرا کے اس کے عوض ڈالرز سنگاپور اور دوبئی بنکنگ چینل زریعے ٹرانسفر کرانے کے حیرت ناک سکینڈل کا پورا کلپ شئیر کریں۔
اس ملک ساتھ کیسا کیسا ظلم ہوا ہے اور بربادی کی داستانیں رقم… pic.twitter.com/680r4MTc8d

— Rauf Klasra (@KlasraRauf) September 21, 2023

According to a report published by The Express Tribune¹, the audit revealed over-invoicing worth Rs69.5 billion by 63 importers who filed 6,232 goods declarations and imported solar panels at prices significantly higher than their market value.

Moreover, a substantial portion of the funds used for these imports are suspected to be illegal money transferred out of Pakistan.

The report said the importers exploited the duty and tax-free import system applicable to solar panels, thus facilitating trade-based money laundering.

According to media reports, the State Bank of Pakistan (SBP) had intervened and updated its list of products for which prior permission will be required for opening LCs for their import. Among the products added to the list were solar panels, inverters, and batteries.

The SBP also urged federal ministries to compile a list of reputable solar panel importers who can be granted import permissions without the risk of money laundering and over-invoicing.

 

Web Desk