Prime Minister Shehbaz Sharif has ordered immediate legal and disciplinary action against those involved in a massive 120 billion rupee ($430 million) solar panel over-invoicing and money laundering scheme, according to an official statement from the Prime Minister’s Office.
The scandal, which spanned from 2017 to 2022, involves importers allegedly inflating the value of solar panel shipments to illicitly transfer capital out of the country—a practice known as trade-based money laundering (TBML). The Prime Minister expressed grave concern over the scale of the illicit operation and highlighted the “notable negligence” of various state institutions that allowed the scheme to persist for five years.
High-Level Committees Formed
In a move to ensure strict accountability, the Prime Minister’s Office has established two high-level committees to oversee the investigation and prosecution phases.
The first, the “Committee for Disciplinary Action,” is tasked with identifying and penalizing government officials who facilitated or ignored the over-invoicing. This body is headed by the Secretary of the Establishment Division and includes senior representatives from the State Bank of Pakistan (SBP), the Federal Board of Revenue (FBR), the Federal Investigation Agency (FIA), and the Intelligence Bureau (IB).
The second body, the “Monitoring Investigation and Prosecution Committee,” will focus on the technical aspects of the money laundering cases. Led by the Director General of Pakistan Customs Intelligence, this committee will assist in the legal proceedings against the private entities and fake companies involved in the fraud.
Billions in Penalties
The scandal was originally unearthed by the FBR’s Directorate of Post Clearance Audit. Following the discovery, the Customs Adjudication Authority delivered a landmark ruling, imposing penalties totaling 111 billion rupees on shell companies used to facilitate the transfers.
To bolster the legal offensive, Prime Minister Shehbaz has directed the Law Minister to appoint specialized legal counsel. Two qualified lawyers will serve as special prosecutors in Karachi and Islamabad to ensure the cases are pursued vigorously in court.
Systemic Reforms
Beyond individual arrests, the government is looking to recover the stolen funds and seize assets purchased with illegal earnings. The Prime Minister’s Office indicated that this case will serve as a catalyst for systemic reforms designed to plug loopholes in Pakistan’s trade regulations.
Both committees are mandated to submit progress reports to the Prime Minister every 15 days, signaling a high-priority push to restore confidence in Pakistan’s financial and customs oversight during a time of heightened economic scrutiny.