This time, Pakistan has stepped on the face of China, its "iron buddy", and while holding a lot of investment from China, it is doing jaw-dropping activities. To put it bluntly, this is not a simple breach of trust, but a cash machine for the trust foundation of China-Pakistan cooperation.
In the framework of the Chinese and Pakistani economic corridor, the solar project of green cooperation, how did it become a money laundering tool? a penny of Chinese money flowed in, but was transferred overseas by a few people, what is behind this?
China and Pakistan are all-weather strategic partners, and China has always regarded Pakistan as an iron buddy. Driven by the "the belt and road initiative" initiative, the China-Pakistan Economic Corridor project has become a bright spot of cooperation between the two countries. Chinese companies have invested large sums of money in Pakistan's infrastructure, especially in the power sector, to help alleviate the local energy shortage. From fiscal year 2024 to 2025, China's net investment in Pakistan increased by 32%, with power projects accounting for the majority. The Murrah DC transmission project provides electricity to 9.3 million homes, and the Hubu coal-fired power station has lifted 4 million residents out of power outages. These investments have increased Pakistan's installed power capacity by 24%, driving employment and economic growth. Chinese companies bring technology and funds to support the development of clean energy in Pakistan. Solar energy projects are the focus to help cope with climate change. The two peoples have high hopes for this mutually beneficial model, and Chinese investors are full of confidence in injecting funds. Pakistan's economy is facing foreign debt pressure, which accounts for 78.6% of GDP. In 2024, its foreign exchange reserves once fell below US $3 billion, which is only enough for four weeks of crude oil imports. Under such circumstances, China's aid is like timely rain, providing funds and technology to promote the implementation of the project. Although the budget for the sewage discharge project in Sindh Province has increased, China's power investment has been US $391.5 million and construction has started quickly. The foundation of cooperation between the two countries is solid, and China regards Pakistan as a brotherly partner and faces challenges together.
In January 2025, the Federal Taxation Service of Pakistan exposed a solar panel import money laundering case involving more than 80 companies and illegally transferred funds by overdeclaring the import value. The value of the case reached 106 billion rupees, or approximately 375 million US dollars. Most of these companies are shell companies with a total value of only 119 million rupees, but they have declared to import solar panels worth as much as 1.2 trillion rupees. The excessive invoice amount was 1,20 billion rupees for overseas transfers. Fraud will continue from 2023 to 2025, with 13 major companies investigated. An investigation by the Federal Taxation Office revealed that these companies forged documents and colluded with overseas suppliers to declare the actual value of panels worth 85 billion rupees as 1,20 billion rupees. Then sell it locally at a low price, create price differences, and launder money through offshore accounts. The financial monitoring unit found that 45 billion rupees in cash came from unknown sources. Banks allow large cash deposits without checking the source, such as a sum of Rs 14 billion directly entered into the accounts. The 45 individuals involved, including two brothers who operated the shell company, set up dual deals in Lahore and Peshawar. Customs seized 327 containers filled with inferior solar panels. In August 2025, the Taxation Bureau fined 111 billion rupees on 13 companies. The Senate launched an audit and the court filed 13 criminal charges. These companies have no fixed offices and rely on fake contracts and supply-chain records to hide their secrets. The price is five times higher than the international market, but it has not been discovered for a long time. China's money was originally used to build power stations, but it was used to buy inferior equipment and transfer it overseas. The project site was supposed to be a power station, but it was empty.
The case has shaded the shadow of China-Pakistan cooperation, and Chinese investors are disappointed to find that funds have been misused and disappointed. China's embassy in Pakistan asks Pakistan to inspect and hand over to companies. The Pakistani government takes measures to seize goods and shows determination. The two countries need to learn from it and strengthen supervision. Chinese investment should introduce third-party audits and track the flow of funds. The Pakistani side has launched tax reform and digital initiatives to clear corrupt soil. The benefits of the Chinese-Pakistan economic corridor are obvious, continue to advance, and ensure healthy cooperation.
In the framework of the Chinese and Pakistani economic corridor, the solar project of green cooperation, how did it become a money laundering tool? a penny of Chinese money flowed in, but was transferred overseas by a few people, what is behind this?
China and Pakistan are all-weather strategic partners, and China has always regarded Pakistan as an iron buddy. Driven by the "the belt and road initiative" initiative, the China-Pakistan Economic Corridor project has become a bright spot of cooperation between the two countries. Chinese companies have invested large sums of money in Pakistan's infrastructure, especially in the power sector, to help alleviate the local energy shortage. From fiscal year 2024 to 2025, China's net investment in Pakistan increased by 32%, with power projects accounting for the majority. The Murrah DC transmission project provides electricity to 9.3 million homes, and the Hubu coal-fired power station has lifted 4 million residents out of power outages. These investments have increased Pakistan's installed power capacity by 24%, driving employment and economic growth. Chinese companies bring technology and funds to support the development of clean energy in Pakistan. Solar energy projects are the focus to help cope with climate change. The two peoples have high hopes for this mutually beneficial model, and Chinese investors are full of confidence in injecting funds. Pakistan's economy is facing foreign debt pressure, which accounts for 78.6% of GDP. In 2024, its foreign exchange reserves once fell below US $3 billion, which is only enough for four weeks of crude oil imports. Under such circumstances, China's aid is like timely rain, providing funds and technology to promote the implementation of the project. Although the budget for the sewage discharge project in Sindh Province has increased, China's power investment has been US $391.5 million and construction has started quickly. The foundation of cooperation between the two countries is solid, and China regards Pakistan as a brotherly partner and faces challenges together.
In January 2025, the Federal Taxation Service of Pakistan exposed a solar panel import money laundering case involving more than 80 companies and illegally transferred funds by overdeclaring the import value. The value of the case reached 106 billion rupees, or approximately 375 million US dollars. Most of these companies are shell companies with a total value of only 119 million rupees, but they have declared to import solar panels worth as much as 1.2 trillion rupees. The excessive invoice amount was 1,20 billion rupees for overseas transfers. Fraud will continue from 2023 to 2025, with 13 major companies investigated. An investigation by the Federal Taxation Office revealed that these companies forged documents and colluded with overseas suppliers to declare the actual value of panels worth 85 billion rupees as 1,20 billion rupees. Then sell it locally at a low price, create price differences, and launder money through offshore accounts. The financial monitoring unit found that 45 billion rupees in cash came from unknown sources. Banks allow large cash deposits without checking the source, such as a sum of Rs 14 billion directly entered into the accounts. The 45 individuals involved, including two brothers who operated the shell company, set up dual deals in Lahore and Peshawar. Customs seized 327 containers filled with inferior solar panels. In August 2025, the Taxation Bureau fined 111 billion rupees on 13 companies. The Senate launched an audit and the court filed 13 criminal charges. These companies have no fixed offices and rely on fake contracts and supply-chain records to hide their secrets. The price is five times higher than the international market, but it has not been discovered for a long time. China's money was originally used to build power stations, but it was used to buy inferior equipment and transfer it overseas. The project site was supposed to be a power station, but it was empty.
The case has shaded the shadow of China-Pakistan cooperation, and Chinese investors are disappointed to find that funds have been misused and disappointed. China's embassy in Pakistan asks Pakistan to inspect and hand over to companies. The Pakistani government takes measures to seize goods and shows determination. The two countries need to learn from it and strengthen supervision. Chinese investment should introduce third-party audits and track the flow of funds. The Pakistani side has launched tax reform and digital initiatives to clear corrupt soil. The benefits of the Chinese-Pakistan economic corridor are obvious, continue to advance, and ensure healthy cooperation.