Pakistan Cracks Down On Chinese Firms: Massive Power Theft Exposed In Lahore

Islamabad: Pakistan's Federal Board of Revenue (FBR) has tightened the biggest clampdown on Chinese companies so far. What was revealed when raids were conducted on Chinese tile factories running in the Sultanpur Industrial Area of ​​Lahore was shocking. Electricity up to 500 kilowatts was being stolen by taking a license of 50 kilowatts. Evidence was collected through camera surveillance, and connections to several units were disconnected. This was not just electricity theft but a complete systematic game of tax evasion. FBR has served a tax demand notice worth crores of rupees. 

500 kW consumption on a 50 kW connection—how did the footage reveal the secret?

The FBR team had installed secret cameras in Chinese factories. The footage clearly showed that meter tampering was being done. The machines ran day and night, but the bill kept coming for only 50 kW. One factory alone was burning electricity worth Rs 4-5 crore for free in a month. More than 10 Chinese units were under surveillance, out of which immediate action was taken on 6-7. The Chinese management initially denied it but became silent after seeing the camera footage. FBR sealed electricity connections and started tax recovery with a penalty.

Why crack down on Chinese companies now?

These factories are part of CPEC. Pakistan owes China more than $30 billion. Still, this action of the FBR is raising many questions. Sources are saying that in the second term of the Trump administration, America is pressuring Pakistan to distance itself from China. In the reports of the US Embassy, ​​these Chinese factories were described as “tax havens.” Is Pakistan targeting its biggest investor to please America?

What is the new plan of FBR?

The FBR chairman has clearly said that now cameras will be installed in every Chinese and foreign factory. There will be live monitoring of electricity, gas, and sales tax. In the next phase, raids may be conducted on Chinese units in Karachi, Faisalabad, and Gujranwala. According to an estimate, tax evasion worth Rs 200-300 crore was going on annually in the tile sector alone.

New rift in Pak-China relations?

China has not yet given any official statement, but complaints have started in the back channel. Pakistan's compulsion is clear: the IMF's strict conditions, the empty treasury, and the necessity to increase tax collection. But the friend who gave billions of dollars is certain to be punished. Will this not create a permanent rift in relationships? The dream of CPEC is fading. American pressure, financial crisis, and now action will be taken against our biggest investor. In which direction is Pakistan going?