ISLAMABAD: The Senate Standing Committee on Finance on Wednesday directed the State Bank of Pakistan (SBP) and the Federal Board of Revenue (FBR) to present a workable plan to tackle the widespread overinvoicing and under-invoicing of imports and exports, following confirmation of a Rs110 billion fraud and trade-based money laundering under the guise of solar panel imports.

A meeting of the committee, chaired by former finance minister Saleem Mandviwalla of the PPP, adopted a report of the Subcommittee on Resolving Issues Related to Solar Panels. It recommended granting one month to the SBP and FBR to finalise a report outlining a future course of action to curb over-invoicing and underinvoicing, according to an official announcement.

The subcommittee, led by PTISenator Mohsin Aziz, uncovered startling revelations of over Rs110bn in fraud and money laundering carried out under the guise of solar panel imports by more than 80 companies some of them dummy firms. It also criticised the SBP for not being forthcoming on the subject.

Accordingtothesubcommittee, the FBR disclosed significant findings of over-invoicing and trade-based money laundering linked to solar panel imports. In one case, the FBR revealed that the owner of a company involved in these imports had falsely presented himself as a salaried individual in official documentation.

On a broader scale, the FBR highlighted alarming instances of over-invoicing and suspicious transactions, the Senate Secretariat said. The companies in question had collectively transferred approximately Rs106bn for solar imports, of which Rs69bn was identified as over-invoicing. In total, the FBRflagged 80 suspicious companies, with 63 of them alone accounting for the Rs69bn in inflated transactions.

As a result of the over-invoicing revelations, the FBR has lodged 13 FIRs against the implicated companies.

The committee members, while discussing a private member`s bill titled `The Income Tax (Amendment) 2025`, introduced by Senator Zeeshan Khanzada, unanimously agreed to recommend that the matter be referred to the National Assembly speaker to determine whether the bill qualifies as a money bill.

Thecommitteealsodeliberated on the federal government`s rightsizing policy, with members expressing concerns over its clarity and execution. While the objective of reducing bureaucratic excess was acknowledged, several questions were raised regarding its potential impact on current government employees.

Senator Sherry Rehmanemphasised the need for transparency, inquiring whether the abolishment of posts would affect only vacant positions or also include existing staff, particularly long-serving contr act employees. She stressed the importance of receiving a macrolevel assessment of the policy`s financial and human resource implications by early June.

Committee Chairman Saleem Mandviwalla reiterated the necessity of clearly identifying both the departments being merged and the employees affected, to ensure a comprehensive understanding of the policy`s ramifications.

Officials informed the committee that relevant data was still being compiled, with a final report expected by June 30.

The SBP deputy governor briefed the meeting on the government`s ongoing efforts to restructure power sector circular debt and reported that negotiations were underway with banks to raise approx Rs1.28tr.