Authorities have uncovered large-scale under-invoicing, tax evasion, and suspected trade-based money laundering in solar home system kit imports for the Sindh Solar Energy Project (SSEP).

The Senate Secretariat released selected sections of an FBR report submitted to the Senate Standing Committee, highlighting serious irregularities in the import, pricing, and documentation of solar kits.

Contractors declared solar kits at $16 to $23.4 per unit for customs clearance, while the World Bank paid up to $112.44 per unit under the SSEP.

Investigations are ongoing into trade-based money laundering, tax evasion, fund layering, and foreign exchange violations related to the procurement and import of the solar kits.

FBR told the committee that M/s Beyond Green, Karachi, imported 10 consignments totaling 200,968 kits between December 2024 and July 2025 through clearing agent M/s Vista Impex.

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The consignments, declared under HS Codes 8501.7210 and 8501.711, attracted zero customs duty, 18 percent sales tax, three percent additional sales tax, and zero income tax payments.

Verification revealed submitted declarations to the Sindh government were falsified, while further investigation found the same solar kits supplied to the provincial government at inflated prices.

Official contracts with M/s Shenzhen LEMI Technology Development Co Ltd, China, set kit prices at around $112.44 each, with World Bank payments reportedly made directly to the supplier.

Fake invoices worth $12.5 million and third-party remittances through UAE-based entities triggered anti-money laundering proceedings and a comprehensive sales tax audit, as recommended by the FBR.

Following the revelations, Sindh cabinet referred the case to EACE, NAB took cognisance, and the Senate committee criticized absent officials while demanding accountability for all involved individuals.