Authorities recently identified large-scale under-invoicing, significant tax evasion, and suspected trade-based money laundering within imports of solar home system kits. This alarming discovery relates to the Sindh Solar Energy Project (SSEP). The Federal Board of Revenue (FBR) is actively investigating this major Sindh Solar Tax Theft case, raising serious concerns about transparency and financial integrity in crucial development initiatives. This investigation aims to hold accountable those responsible for financial irregularities in solar kit imports.
Unveiling Massive Price Discrepancies in Solar Kit Imports
The Senate Secretariat released key operational details from an FBR report to the Senate Standing Committee on Economic Affairs. This report highlighted serious irregularities concerning the import and pricing of solar kits. Contractors declared solar kits at remarkably low prices, ranging between $16 and $23.4 per unit for customs clearance. In contrast, the World Bank paid up to $112.44 per unit for identical kits under the SSEP. Consequently, this indicates a staggering price difference of $89 to $96 per unit, nearly 700 percent higher than the declared values. Such a significant disparity fuels concerns over the extent of the Sindh Solar Tax Theft.
FBR’s Thorough Investigation Reveals Fake Declarations
The FBR’s report confirmed ongoing investigations into various illegal activities. These include trade-based money laundering, tax evasion, fund layering, and foreign exchange violations. For instance, M/s Beyond Green, Karachi, imported 10 consignments, comprising 200,968 solar home system units, between December 2024 and July 2025, using clearing agent M/s Vista Impex. These consignments were declared under specific HS Codes, attracting zero customs duty and income tax, but 18 percent sales tax and 3 percent additional sales tax. Importantly, four consignments were cleared through the Green Channel, suggesting minimal scrutiny.
However, verification later revealed that the goods declarations submitted to the Sindh government were fake or tampered with. Officials confirmed this fact on October 9, 2025. Further investigation clearly showed the same solar kits supplied to the Sindh government at significantly higher prices, directly impacting public funds and project efficacy. This points to a deliberate scheme involving the Sindh Solar Tax Theft.
Escalating Legal Actions and Pursuit of Accountability
Official contracts under the SSEP with M/s Shenzhen LEMI Technology Development Co Ltd, China, showed a contractual price of approximately $112.44 per kit, excluding duties and taxes. The World Bank reportedly made direct payments to the supplier at this rate. For tax assessment, FBR calculated a transactional value of $103.08 per unit. Subsequently, they issued 10 contraventions, which were then referred to customs adjudication authorities. Show-cause notices have been issued, and the case remains pending.
Furthermore, the committee learned that fake invoices worth $12.5 million were generated. Evidence also pointed to third-party remittances routed through UAE-based entities. This raises serious red flags over money laundering and fund layering activities. Consequently, authorities referred the case for proceedings under the Anti-Money Laundering Act, 2010. A comprehensive sales tax audit has also been recommended to fully uncover the extent of the Sindh Solar Tax Theft and ensure justice.
The SSEP formally concluded on July 31, 2025. Approximately 30,000 solar kits, out of 200,000, could not be distributed within the project timeline and will now be handled separately. Following these critical revelations, the Sindh cabinet referred the matter to the Enquiries and Anti-Corruption Establishment (EACE) on December 1, 2025. A forensic audit is currently underway, and the National Accountability Bureau (NAB) has also taken cognisance of the case, ensuring broad oversight into this Sindh Solar Tax Theft.
Parliamentary Oversight and Demands for Justice
Committee chairman Saifullah Abro inquired whether any officials had been suspended following the findings. He was informed that no suspensions had taken place so far. Therefore, he directed that a letter be written to the chief minister, emphasizing the need to ensure accountability for all individuals involved in this significant financial misconduct.
Earlier, the Senate panel expressed strong displeasure over the continued absence of Minister for Economic Affairs Ahad Khan Cheema, senior bureaucrats, and provincial secretaries. They termed this a serious violation of parliamentary oversight, hindering effective investigation. An additional secretary from the Economic Affairs Division explained that the minister was attending the World Economic Forum in Davos. However, this explanation failed to satisfy the committee members, who reiterated their demand for direct engagement from key stakeholders.
