ByThe Federal Board of Revenue (FBR) has uncovered a massive Rs106 billion money laundering scheme under the guise of solar panel imports. The Directorate of Customs Post Clearance Audit South, which spearheaded the investigation, identified seven fake companies involved in the operation and has filed cases against them.
The companies implicated in this fraudulent scheme include:
- Messrs Sky Linkers Trading Company, Peshawar
- Messrs Sky Linkers Business Chain Private Limited, Peshawar
- Messrs Bright Star Business Solution Private Limited, Peshawar
- Messrs Moonlight SMC Private Limited, Peshawar
- Messrs Pak Electronics, Lahore
- Messrs Solar Site (Private) Limited, Lahore
- Messrs Royal Zone (Private) Limited
Shiraz Ahmed, Director of Customs Post Clearance Audit South, revealed that the investigation dismantled a notorious cartel headed by Rab Nawaz and his brother Ahmed Nawaz. These individuals used the seven fake companies to orchestrate the massive scam, causing significant financial damage to the national exchequer.
The scheme primarily relied on over-invoicing solar panel imports. While the total declared value of these imports stood at just Rs119 million in income tax filings, the companies carried out transactions totaling Rs106 billion. Investigators discovered that the actual cost of solar panels imported from China was 0.15 cents per watt. However, the scam inflated the declared import value to $0.35–$0.70 per watt, marking an over-invoicing margin of 235% to 500%.
Further investigations revealed that Rs42 billion was deposited as cash into commercial banks to disguise the illegal origin of funds. The remaining Rs85 billion was declared as local sales under unregistered and unidentified individuals, further complicating the audit trail.
One striking revelation involved a salaried individual earning just Rs250,000 annually who was listed as the owner of a fake company responsible for importing solar panels worth Rs2.5 billion. Additionally, the funds from the operation were traced to four bank accounts in China, controlled by Rab Nawaz. These accounts were used to obscure the actual export values of the solar panels, adding another layer of illegality.
The operation, conducted under the leadership of DG PCA Chaudhry Zulfiqar Ali and Director Shiraz Ahmed, exposed the depth and sophistication of the fraudulent network. The findings have led to the filing of cases and the intensification of efforts to bring all individuals involved to justice.
This breakthrough marks a significant step forward in combating financial crimes in Pakistan, as the FBR reaffirms its commitment to ensuring transparency and accountability in the country’s financial and trade sectors.
