FBR confirm huge money laundering via solar panels imports in Pakistan

ISLAMABAD: A Federal Board of Revenue (FBR) report has revealed significant money laundering activities involving the import of solar panels in Pakistan, ARY News reported on Monday.

The report, covering the period between 2017 and 2022, highlights over-invoicing by 63 importers, with transactions totaling Rs 69.5 billion.

According to the report, two companies, Bright Star and Moonlight Traders, are allegedly transferred Rs 72.83 billion out of Pakistan while importing solar panels, which they sold for Rs 45.61 billion domestically.

The FBR’s findings suggest that the companies were involved in gross over-invoicing to facilitate the illegal transfer of funds.

Further investigation revealed that the registered offices of both companies in Peshawar were non-existent, with the address of Moonlight Traders found to be fake.

READ: Solar Panel import scandal main accused arrested

Additionally, the mother of the Bright Star company owner was found residing at the address listed for the company, while the owner himself has reportedly been living in China for the past decade.

The FBR report also disclosed that the two companies transferred Rs 20.4 billion abroad without filing tax returns and illegally deposited Rs 14 billion in cash in local banks. Despite these large cash transactions, the banks involved failed to take any action.

The solar panels were imported from China, but the payments were sent to accounts in Singapore and other countries, raising further suspicions.

FIRs have been registered against both companies, and the Director of Bright Star Company has been summoned by a Special Judge in Customs, Karachi.

Meanwhile, the Director of Moonlight Traders has resigned, and action is being taken against five additional companies involved in similar activities.