Latest news with #MohsinAziz
Business Recorder
24-05-2025
- Business
- Business Recorder
Less hydel output: Generation mix changes may affect rebased tariff: Nepra
ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) on Friday said that impact of change in generation mix due to less hydel generation is expected to effect the proposed rebasing tariff for the fiscal year 2025-26. Testifying before Senate Standing Committee on Power, presided over Senator Mohsin Aziz, Nepra Chairman Waseem Mukhtar said since there is substantial decrease in rains in the country, it will alter the projected generation mix for next fiscal year, which implies that whatever relief was expected for next year, will not be available. The standing committee was apprised that current relief of Rs 7.41 per unit is available to consumers from April 2025, of which the impact of revision or termination of agreements is around Rs 1.81 per unit, QTA Rs 2.37 per unit, FCA Rs 1.12 per unit and Rs 2.12 per unit due to raising the Petroleum Levy will continue but relief under QTAs and FTAs is subject to economic conditions of the country and the price of fuel in the international market. Hydel reduction forecast: Nepra seeks generation plan from PD Minister for Power, Awais Leghari informed the committee that he has held a meeting with the Finance Minister on deduction of provinces reconciled amounts. Currently an amount of Rs 161.472 billion is outstanding against provinces but no province is ready for reconciliation except Punjab. Of total receivables of Rs 161.472 billion, share of Punjab is Rs 41.832 billion, Sindh, Rs 67.960 billion, Balochistan, Rs 41.600 billion and KP, Rs 10.080 billion. The minister expressed anger at the absence of senior officials from PPMC and CPPA-G to respond to queries of Standing Committee members as junior officials were unable to provide the explanations requested by the Committee members. On the issue of ToU meters, the minister stated that an exercise has been done in coordination with Aptma, which proves that if the mechanism of ToU meters is done away with it will have additional impact of Rs 35 billion on industry. Copyright Business Recorder, 2025
Express Tribune
23-05-2025
- Business
- Express Tribune
Provinces owe Rs161b for electricity charges
Say balancing of payments alone does not constitute economic planning. PHOTO: BLOOMBERG A Senate panel was told on Friday that the provincial governments have not yet paid a total of Rs161 billion that they owe to the federal government for electricity charges. The Senate Standing Committee on Power convened on Friday to discuss key issues including adjustments of provincial power dues through the National Finance Commission (NFC) and the privatisation of power distribution companies (DISCOs). During the meeting, the committee chairman, Senator Mohsin Aziz, said that the provinces claim that the federal government has not cleared pending dues. The Power Division officials stated that the provincial governments had not paid a total of Rs161 billion. Punjab owes the federal government Rs42 billion; Khyber Pakhtunkhwa, Rs10 billion; Sindh, Rs68 billion and Balochistan, Rs42 billion. The officials clarified that the amount is for power supplied to provincial departments, while federal dues may relate to hydel power adjustments. Minister for Power Awais Leghari said the matter was discussed with the Finance Ministry recently and that he has written to all provincial chief ministers for settlement of dues. Leghari informed the committee that following the reconstitution of DISCOS' boards, losses have been reduced by Rs140 billion as of March, adding that the government has assured the IMF of its commitment to privatise the DISCOs. "The government's role is not to run power distribution companies. The goal is to privatise all DISCOs within the next three years. In the first phase, three DISCOs will be privatised. A financial advisor is already working on the process and has submitted a due diligence report," he said. Leghari expressed confidence that the privatisation of the three companies will be completed within the next six months, although the committee chair noted it may be by June next year.
Express Tribune
14-02-2025
- Business
- Express Tribune
Over-invoicing worth Rs69.5b unearthed
Listen to article ISLAMABAD: A massive money laundering scandal has been unearthed in the import of solar panels that has shown over-invoicing of Rs69.5 billion between 2017 and 2022. Officials of the Federal Board of Revenue (FBR) disclosed this while giving a briefing to the sub-committee of the Senate Standing Committee on Finance in a meeting held under the chairmanship of Senator Mohsin Aziz. The solar panels were imported from China, but payments were made to companies in other countries. The committee was informed that a total of Rs117 billion was transferred abroad through the scam, with payments going to companies in 10 countries including the UAE, Singapore, Switzerland, the US, Australia, Germany, Canada, South Korea, Sri Lanka and the UK. Importing solar panels from China and making payments to companies in other countries is a violation of Pakistani laws. According to the FBR, 63 solar panel importing companies have been shortlisted for investigation and 13 FIRs have been registered. A company named Beith Star imported solar panels worth Rs47 billion and sold them for Rs42 billion abroad. Other companies illegally transferred over Rs18 billion to different countries on account of payment for solar panels imported duty-free from China. Sub-committee Convener Senator Mohsin Aziz emphasised that there was clear evidence of money laundering and there was no doubt about it. He asked how a company with a paid-up capital of Rs2 million could do business worth Rs50 billion while another company with a paid-up capital of Rs10 million engaged in deals worth Rs40 billion. He also questioned as to how banks opened accounts for those companies without proper verification, saying banks showed negligence in that regard. State Bank of Pakistan's deputy governor told the meeting that banks had been fined over Rs200 million for their involvement in the scam. However, he clarified that banks were not aware of the quality and price of the imported goods as the FBR was required to determine the price of such goods. Mohsin Aziz directed the FBR to submit a report on the entire matter after investigation. Separately, the State Bank is also supposed to submit its report.
Express Tribune
27-01-2025
- Business
- Express Tribune
Senate body probes 'corruption' in solar panel import scandal
ISLAMABAD: A Senate subcommittee on Finance on Monday raised serious concerns over a multi-billion-rupee corruption scandal in the import of solar panels. The Senate Standing Committee on Finance's subcommittee questioned how certain companies managed to conduct transactions far exceeding the legally prescribed annual limit of Rs20 million, with some firms allegedly processing transactions worth Rs2 billion to Rs5 billion in a single year. The panel was told that a total of 11 companies have been allegedly involved in the mega scandal. Presided over by Senator Mohsin Aziz, the subcommittee convened to discuss the details of the scandal. The Federal Board of Revenue (FBR) was heavily criticised for its failure to detect and prevent these suspicious transactions. "How did a few companies manage transactions worth billions? Were these transactions conducted in the country of origin, the country of shipment, or elsewhere? If so, why?" Senator Aziz questioned. He further probed how companies exceeded the Rs20 million annual transaction limits. "Where was the FBR when these suspicious transactions occurred?" The committee revealed that 11 companies were involved in the Rs160 billion solar panel transactions, with two central players being Star Business Solution and Moonlight from Peshawar. A private Islamic bank disclosed that the accounts for these companies were opened at its Badami Bagh branch in Lahore. Bright Star's account was opened on August 3, 2018, by Rab Nawaz and his wife, Zainab Nawaz, while Moonlight's account was initiated by Zahid Akbar. Bright Star began conducting business just three days after its account was opened. According to the bank's representatives, Bright Star processed transactions worth Rs2.7 billion in 2018, Rs5 billion in 2019, Rs1.5 billion in 2020, Rs3 billion in 2021, and Rs2.5 billion in 2022. Senator Aziz pointed out that while a single-day transaction limit was Rs2 million, these companies processed multiple millions in a single day. "How was this possible?" The bank officials responded that transactions exceeding Rs2 million trigger a Currency Transaction Report (CTR), which is then forwarded to the Financial Monitoring Unit (FMU). FMU representatives explained that receiving a CTR does not automatically indicate suspicion, but if a transaction appears dubious, a Suspicious Transaction Report (STR) is filed and forwarded to enforcement agencies for further action. Senator Aziz demanded clarity on the enforcement agencies' actions against the companies implicated in the STRs, stressing the need for stricter scrutiny and accountability. It is pertinent to note that earlier this month, the Post Clearance Audit (PCA) South uncovered a massive Rs106 billion money laundering scheme tied to fraudulent solar panel imports. The investigation identified two brothers as the alleged masterminds behind the operation, which relied on a web of seven shell companies based in Peshawar and Lahore. Despite a declared financial worth of just Rs119 million, the companies laundered billions through over-invoiced solar panel imports. PCA findings revealed that solar panel prices were inflated by up to 500%, with panels imported at $0.35$0.70 per watt, far exceeding the original $0.15 per watt cost in China. To conceal the illicit funds, Rs42 billion was deposited in cash across multiple commercial banks.
