Senate Probes Rs Billions Solar Kit Under-Invoicing Scandal

The Senate Standing Committee on Economic Affairs has voiced grave concerns over a major episode of alleged under-invoicing, tax evasion, and trade-based money laundering involving imports of solar home system kits under the Sindh Solar Energy Project (SSEP), as detailed in a report presented by the Federal Board of Revenue (FBR).

The FBR investigation exposed significant pricing discrepancies: contractors declared unit values of solar kits between US$16 and US$23.4 for customs purposes, while the World Bank disbursed up to US$112.44 per unit under the project, resulting in a per-unit differential of US$89 to US$96.

The report identified that M/s Beyond Green, Karachi, imported 10 consignments comprising 200,968 solar kits between December 2024 and July 2025 through clearing agent M/s Vista Impex, declaring the goods under HS Codes 8501.7210 and 8501.711 (zero customs duty, 18% sales tax, and 3% additional sales tax). Subsequent verification revealed that the goods declarations submitted to the Sindh government were either fabricated or tampered with.

Further scrutiny established that the same kits were supplied to the Sindh government at approximately US$112.44 per unit, with direct payments made by the World Bank to the Chinese supplier, M/s Shenzhen LEMI Technology Development Co Ltd. The customs-declared value was artificially lowered to US$103.08 per unit, prompting issuance of show-cause notices and referral of 10 contraventions to customs adjudication authorities.

The investigation also uncovered issuance of fake invoices valued at US$12.5 million and routing of third-party remittances through UAE-based entities, raising serious allegations of trade-based money laundering and violations of foreign exchange regulations. The matter has been referred for proceedings under the Anti-Money Laundering Act, 2010, and a comprehensive sales tax audit has been recommended.

Despite the SSEP’s implementation deadline expiring on July 31, 2025, approximately 30,000 of the 200,000 solar kits remain undistributed and are now being managed under a separate arrangement. Following the revelations, the Sindh cabinet referred the case to the Enquiries and Anti-Corruption Establishment (EACE) on December 1, 2025, and approved a forensic audit currently underway, with the National Accountability Bureau (NAB) also conducting a parallel probe.

Committee Chairman Senator Saifullah Abro expressed strong dissatisfaction over the absence of suspensions for involved officials and directed issuance of a letter to the Chief Minister of Sindh to ensure prompt accountability and disciplinary action against those responsible.