Case Filed Over Alleged Unauthorized Refunds
The Federal Investigation Agency (FIA) has officially withdrawn the corruption case filed against former Federal Board of Revenue (FBR) chairman Shabbar Zaidi, officials confirmed on Friday. The case had been registered on Thursday over allegations that Zaidi issued unauthorized income tax refunds totaling Rs16 billion during his tenure as FBR chief.
According to sources, the FIA’s Anti-Corruption Circle had accused Zaidi of criminal misconduct, abuse of authority, and improper disbursement of public funds. The refunds in question reportedly benefited three private banks, two cement factories, and one chemical company, all of which had previously been clients of Zaidi’s private audit and consultancy firm prior to his appointment at the FBR. The allegations had raised concerns of a potential conflict of interest, prompting the registration of the FIR.
Official Notification Confirms Case Cancellation
Despite the initial filing, a notification issued by the FIA Karachi division on Thursday clarified that the agency had decided to withdraw the case. The notification stated:
“The Director, FIA Karachi Zone, has been pleased to accord permission for cancellation of case FIR No. 32/2025 dated 29.10.2025 … as well as classification of case as ‘C-Class’ and submission of discharge report … against the then chairman FBR (1) Syed Muhammad Shabbar Zaidi.”
This decision effectively closes the investigation, and Zaidi has been formally cleared of all allegations linked to the case. The FIA’s move underscores the importance of careful review and procedural verification before pursuing high-profile corruption cases against public officials.
Zaidi, a respected tax expert and former chairman of the FBR, had held the position during a critical period for Pakistan’s revenue authority. The withdrawal of the case is expected to remove a significant legal hurdle for him, allowing him to continue his professional and consultancy engagements without further scrutiny related to the dismissed FIR.
