On July 30, 2025, the Federal Board of Revenue (FBR) announced a staggering Rs. 111 billion fine on fraudulent solar panel import companies involved in a sprawling money laundering and over-invoicing scheme.

The FBR’s Directorate of Post Clearance Audit (South) in Karachi uncovered a sophisticated network of 13 fake companies, primarily based in Peshawar, Quetta, and Islamabad, that laundered Rs. 120 billion through inflated invoices and illicit financial transactions disguised as solar panel imports.

The investigation revealed that these companies deposited Rs. 140 billion into bank accounts using forged documents, obscuring the origins of illicit funds.

Additionally, the cartel manipulated sales tax records by submitting fake invoices worth Rs. 85 billion, further compounding the fiscal fraud.

To curb this malpractice, the FBR seized 327 containers of solar panels and set a target to recover Rs. 1.5 billion through their auction, signaling a robust crackdown on trade-based money laundering.

The fraudulent network exploited the duty- and tax-free status of solar panel imports, a policy designed to promote renewable energy, to siphon billions overseas.

Funds were transferred to third countries, violating State Bank of Pakistan (SBP) regulations.