Prime minister forms two committees to probe Rs120 billion solar import over-invoicing scam

Prime Minister Shehbaz Sharif has constituted two seven-member committees to monitor disciplinary proceedings and support criminal prosecution in a Rs120 billion over-invoicing scheme linked to solar panel imports, according to a news report. 

The decision follows a high-level review meeting where the Prime Minister raised concerns over a trade-based money laundering case that investigators said operated between 2017 and 2022.

The first committee, headed by the Secretary of the Establishment Division, will oversee disciplinary action against officials of relevant organisations for administrative lapses or alleged facilitation of the scheme. It will determine supervisory responsibility, review cases where no charges were previously established, and submit fortnightly reports to the prime minister.

The second committee, led by the Director General of Intelligence and Investigation (I&I), Pakistan Customs, will assist in the investigation and prosecution of cases arising from the scam. It has been tasked with ensuring legal proceedings are carried out without delay and will also provide fortnightly updates.

Prime Minister Shehbaz Sharif has also directed the Minister for Law and Justice to nominate two lawyers as special prosecutors for Karachi and Islamabad to handle the cases.

The scheme, identified by the Directorate of Post Clearance Audit, involved importers using shell companies to inflate the declared value of solar panel imports. Authorities said goods were brought in at higher declared prices and sold locally at lower rates, with the difference transferred abroad through banking channels.

Following adjudication, the Customs Adjudication Authority imposed penalties of Rs111 billion on the entities involved, along with additional penalties on individuals. Investigations found that many of the companies were fictitious and relied on fabricated documentation.

The inquiry is examining the role of government departments, financial institutions and regulatory bodies in allowing the scheme to continue for nearly five years.