A significant case of over-invoicing in the import of solar panel between 2017 and 2022 has been exposed in Pakistan, with a staggering sum of over Rs 69.5 billion being implicated. This revelation was made in a report by the Federal Board of Revenue (FBR). It was presented during a briefing to the Senate Standing Committee on finance. The report detailed a pattern of over-invoicing that involved 6,232 Goods Declarations (GDs) from 63 importers, resulting in the transfer of Rs 72 billion by two private companies for solar panels valued at Rs 45 billion.
The FBR’s findings also indicated that commercial banks had violated the rules set by the financial monitoring unit in facilitating these transfers. Subsequently, an FIR (First Information Report) has been registered against those individuals and entities involved in these irregularities.
In response to the urging demand for solar panels in Pakistan, the Alternate Energy Development Board has finalized a policy paper on the manufacturing of solar panels and related equipment. This policy paper was developed through extensive consultations with various stakeholders, including local solar manufacturers, provincial departments, consumers, and relevant bodies. The policy was compiled by the Renewable Energy Task Force, which operates under the prime minister’s leadership.
The surge in demand for solar panels is attributed to the continuous increase in electricity tariffs, which has prompted many consumers to explore alternative and cost-effective energy solutions. Solar energy has risen as an environmentally friendly and economically viable option, leading to heightened interest and demand for solar panels, particularly in urban areas like Karachi.
The revelation of massive over-invoicing in solar panel imports highlights the need for stringent financial oversight and regulations in trade transactions. These irregularities not only result in significant financial losses but also undermine the integrity of the import-export process. As Pakistan seeks to expand its renewable energy sector, addressing such financial irregularities becomes crucial to ensure transparency and accountability in the country’s economic activities.