KARACHI: Customs authorities have filed charges against two companies and their proprietors for allegedly engaging in a multi-billion rupee money laundering scheme involving the over-invoicing of imported solar panels, officials said Saturday.
On the instructions of Director I&I Mian Masood and Additional Director Imran Lillah, Assistant Director Gul Baz and Superintendent Zia Moin pursued and found the accused company was blacklisted by Sales Tax and yet they were continuously importing, which means the WeBOC system can’t differentiate between white and black listed traders.
The Directorate of Intelligence & Investigation-Customs in Karachi lodged two separate complaints under the Anti-Money Laundering Act, 2010, against M/s. Delta Trading Company and M/s. Sehar International. The cases, filed on March 22, 2025, accuse the companies of mis-declaring the value of solar panels imported from China and transferring illicit funds abroad.
The Case was detected by the team of Director PCA Sheeraz Ahmed, and was referred to I&I.
According to the complaints, M/s. Delta Trading Company, owned by Muhammad Fashi Naveed, allegedly over-invoiced the value of solar panels by 115.3 million Pakistani rupees ($415,000) across six import transactions. The company is accused of transferring 71 million rupees ($255,000) to Dubai, despite importing the panels from China.
M/s. Sehar International, owned by Hussain, is accused of even larger-scale fraud, with over-invoicing amounting to 765.1 million rupees ($2.75 million) across 166 import transactions. The company allegedly transferred 1.98 billion rupees ($7.1 million) out of Pakistan, far exceeding its declared financial worth.
Both companies are accused of using shell company structures with poor financial standing to facilitate the illicit transfers. Authorities allege that the companies mis-declared the value of solar panels, inflating prices to between $0.23 and $0.72 per watt, compared to the legitimate market price range of $0.17 to $0.22 per watt, as confirmed by the Pakistan Solar Association.
The investigations revealed that both companies failed to provide adequate records during audits, obstructing the process and failing to substantiate their business operations. M/s. Delta Trading Company was found to be blacklisted since its registration in 2020, while M/s. Sehar International has been blacklisted since 2017.
The cases were referred to the Directorate of Intelligence & Investigation-Customs by the Directorate of Post Clearance Audit (South) in Karachi, following sectoral audits of solar panel imports. The audits uncovered serious violations, including over-invoicing, illicit fund transfers, and the use of shell companies to obscure the origin of funds.
Authorities have charged the accused under Sections 3, 4, and 8 of the Anti-Money Laundering Act, 2010, for generating and utilizing proceeds of crime through fraudulent import practices. Further investigations are ongoing.