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The Senate Standing Committee on Economic Affairs on Tuesday raised strong objections over the continued absence of the Minister for Economic Affairs and discussed serious allegations of corruption and financial irregularities in multiple development projects, including the Sindh Solar Energy Project (SSEP) valued at $12.5 million.
The meeting, held at the Parliament House, was chaired by Senator Saifullah Abro and attended by Senators Syed Waqar Mehdi, Rubina Khalid, and Kamran Murtaza.
Minister’s Absence
At the outset, the committee expressed grave displeasure over the non-attendance of the Minister for Economic Affairs, calling it a disregard for parliamentary oversight.
Senator Syed Waqar Mehdi questioned the repeated absence, stating, “Why does the concerned minister not come to the committee? This is a frivolous matter.” He further remarked, “ I have not seen the Minister here since I have been coming to the committee.”
Representing the ministry, the Additional Secretary Economic Affairs informed the committee that the minister was attending the World Economic Forum. The explanation did not satisfy members.
Chairman Saifullah Abro questioned the minister’s continued absence and reminded the committee that parliamentary rules allow cancellation of committee membership after repeated unexplained absences. He directed officials to convey a message to the minister, noting that he had not attended committee meetings for two years.
Objections to Junior Officials’ Participation
Chairman Abro expressed anger over the absence of senior officials, asking, “Where are your secretaries, why did they not come to the committee? Is this some way to send junior officers here?” He categorically stated, “Officers below Grade 20 are not eligible to be in the committee.”
He also questioned the absence of provincial secretaries and directed that a formal letter be written to the Chief Secretary Khyber Pakhtunkhwa, warning that failure to ensure senior representation in the next meeting would result in the matter being referred to the Privileges Committee.
In strong language on governance issues, Senator Abro remarked, “ Stop lending to Khyber Pakhtunkhwa; they will not give up corruption.” He added, “They have taken foreign funding as a sweet. They are very active on social media- look at what is happening in Khyber Pakhtunkhwa projects “
Irregularities in Sindh Solar Energy Project
While reviewing the implementation of previous recommendations, the committee examined an FBR report highlighting serious irregularities in the import of Solar Home System Kits under the Sindh Solar Energy Project.
Import Details (FBR Findings)
| Item | Details |
|---|---|
| Importer | M/s Beyond Green, Karachi |
| Clearing Agent | M/s Vista Impex |
| Total Consignments | 10 |
| Import Period | Dec 2024 – Jul 2025 |
| Total Units Imported | 200,968 solar kits |
| HS Codes Declared | 8501.7210, 8501.711 |
| Consignments via Green Channel | 4 |
| Declared Unit Value | USD 16.1 – USD 23.4 |
The consignments were declared at zero customs duty, with applicable sales and income taxes.
Taxes Declared at Import Stage
| Tax Type | Rate |
|---|---|
| Customs Duty | 0% |
| Sales Tax | 18% |
| Additional Sales Tax | 3% |
| Income Tax | 0% |
Subsequent verification revealed that Goods Declarations submitted to the Government of Sindh were either fake or tampered with, a fact officially conveyed on October 9, 2025. Investigations further showed that the same kits were supplied to the provincial government at significantly higher prices.
Contractual vs Declared Prices
Official contracts under SSEP with M/s Shenzhen LEMI Technology Development Co., Ltd., China, showed a contractual unit price far higher than the declared import value.
| Description | Amount (USD per unit) |
|---|---|
| Declared Import Value | 16.1 – 23.4 |
| Contract Price (SSEP) | 112.44 |
| Taxable Transaction Value | 103.08 |
The World Bank reportedly paid the contractual amount directly to the supplier. Based on the transactional value, 10 contraventions were forwarded to Customs Adjudication authorities, and show-cause notices were issued. The case remains under adjudication.
Financial Irregularities
The committee was informed that fake invoices amounting to USD 12.5 million were generated. Evidence also suggested third-party remittances routed through UAE-based entities.
| Issue Identified | Status |
|---|---|
| Fake Invoices | USD 12.5 million |
| Third-Party Remittances | Routed via UAE entities |
| Suspected Offences | Trade-based money laundering, FX violations, fund layering |
| Legal Action | AML Act, 2010 proceedings initiated |
| Tax Action | Comprehensive sales tax audit recommended |
Project Delays, Audits, and Investigations
Officials informed the committee that although the SSEP (Sindh Solar Energy Project) implementation period ended on July 31, 2025, a significant number of kits could not be distributed within the planned timeframe.
Distribution Status
| Description | Units |
|---|---|
| Total Kits Procured | 200,000 |
| Kits Undistributed | ~30,000 |
| Current Status | To be handled under separate arrangement |
Following identification of discrepancies, the Sindh Provincial Cabinet on December 1, 2025 referred the matter to the Enquiries and Anti-Corruption Establishment. A forensic audit has been approved and is currently underway, while the National Accountability Bureau has also taken cognizance of the case. When asked whether any suspensions had occurred, the committee was informed that no official had been suspended so far.
Other Projects Under Scrutiny
During discussions on the Akram Wah Canal, Swat project, Chairman Abro directed that the chairmen of NESPAK and CEL SE appear in the next meeting. The committee sought complete details of tendering, bidding, and financial records, questioning the 11-month delay in the issuance of the Letter of Award and the division of responsibilities between NESPAK, ACE Limited, and National Engineering Services.
The committee reiterated its commitment to transparency, accountability, and effective parliamentary oversight, warning that continued non-compliance by ministries and provincial governments would invite strict action under parliamentary rules.
