A Rs106 billion ($375 million) money laundering scam disguised as solar panel imports has been unearthed by the Directorate of Customs Post Clearance Audit (PCA) South, operating under the Federal Board of Revenue (FBR).
According to reports, the scheme was allegedly orchestrated by two brothers, Rab Nawaz and Ahmed Nawaz, using over-invoicing, a network of seven shell companies in Peshawar and Lahore, and dual transactions to launder billions.
The companies implicated in the scandal 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, and Messrs Royal Zone (Private) Limited.
According to the investigation, the shell companies, collectively valued at just Rs119 million, used inflated solar panel prices to launder billions. Panels imported at $0.15 per watt were invoiced at $0.35-$0.70 per watt, a markup of up to 500%. The scammers reportedly deposited Rs42 billion in cash into commercial banks to conceal the illicit origin of funds.
An FIR highlighted that one of the shell companies, unregistered with the Securities and Exchange Commission of Pakistan (SECP), imported solar panels worth Rs2.5 billion despite its proprietor declaring an annual income of just Rs250,000.
The investigation further revealed that laundered funds were transferred to four Chinese companies linked to the same individuals, establishing a direct connection between operations in Pakistan and China. Exploiting the duty-free regime for solar panel imports, the scheme involved dual transactions for each consignment—one through Hawala/Hundi and the other via banking channels—exacerbating financial losses to the economy.
Banks are also under scrutiny for failing to flag suspicious transactions from companies with dubious financial profiles.
The operation, led by DG PCA Chaudhry Zulfiqar Ali and Director PCA South Sheeraz Ahmed, employed cross-referencing of customs, sales tax, income tax, and bank records to unravel the network.Â
PCA South has filed four FIRs against those implicated in the scheme.
