KARACHI: Post Clearance Audit (PCA), South has uncovered another massive money laundering scam involving Rs 106 billion ($375 million) through fraudulent solar panel imports.
According to the details, the operation, allegedly led by two brothers, utilized a sophisticated network of seven shell companies across Peshawar and Lahore to orchestrate the scam. These companies, with a declared financial worth of only Rs 119 million, managed to launder billions through over-invoiced solar panel imports.
PCA found that the perpetrators inflated solar panel prices by up to 500 percent, importing panels at $0.35-0.70 per watt that originally cost just $0.15 per watt in China. The scheme involved depositing Rs 42 billion in cash across various commercial banks to obscure the money’s illicit origins.
Rise in trade-based money laundering
“In one striking example, one of the companies, which weren’t even registered with the SECP, managed to import solar panels worth Rs 2.5 billion despite its dummy proprietor declaring an annual income of only Rs 250000,” an FIR said.
The investigation further revealed that the laundered funds were ultimately transferred to four Chinese companies, which were also owned by these alleged brothers, establishing a direct link between the Pakistani and Chinese operations.
The scheme exploited the duty-free regime for solar panel imports, with banks allegedly failing to properly scrutinize transactions from companies with questionable financial standings. “For each import consignment, money was transferred abroad twice - once through Hawala/Hundi and once through the banking channel, provided serious financial shocks through over-invoicing to the country,” it said.
The investigation, which was led by DG PCA Chaudhry Zulfiqar Ali and Director PCA South, Sheeraz Ahmed, utilized cross-referencing of customs, sales tax, income tax, and bank records to expose the scheme and now PCA South has filed four FIRs against a network involved in the scheme.
Copyright Business Recorder, 2025
Comments