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FIA Withdraws Rs16 Billion Corruption Case Against Former FBR Chief Shabbar Zaidi
FIA withdraws Rs16 billion corruption case against ex-FBR chairman Shabbar Zaidi, days after booking him over alleged unauthorised tax refunds and conflict of interest claims.
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by Muhammad Hashir
2025-10-31
FIA Withdraws Rs16 Billion Corruption Case Against Former FBR Chief Shabbar Zaidi

The Federal Investigation Agency (FIA) has withdrawn the corruption case filed against former Federal Board of Revenue (FBR) chairman Shabbar Zaidi, officials confirmed on Friday.

The move comes just a day after reports surfaced that the FIA had booked Zaidi over allegations of authorising unlawful income tax refunds worth Rs16 billion during his tenure as FBR chairman.

According to FIA sources, the agency’s Anti-Corruption Circle had accused Zaidi of criminal misconduct, abuse of authority, and unauthorised disbursement of public funds. The FIR claimed that three private banks, two cement factories, and one chemical company benefited from these tax refunds — all of which were allegedly former clients of Zaidi’s private audit and consultancy firm prior to his appointment at the FBR.

These connections had raised conflict of interest concerns, with investigators initially suggesting that Zaidi may have misused his official position to benefit his former clients.

However, in a surprising development, a notification issued by the FIA Karachi Zone on Thursday announced the cancellation of the case.

“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,” the notification read.

The ‘C-Class’ classification indicates that the case was found to be without sufficient evidence to proceed further, effectively clearing Zaidi of the charges.

Zaidi, a well-known chartered accountant and former partner at A.F. Ferguson & Co., served as FBR chairman from May 2019 to December 2019 during the Pakistan Tehreek-e-Insaf (PTI) government. His tenure was marked by ambitious tax reforms aimed at broadening the tax base but also controversies over policy decisions and administrative challenges.

The withdrawal of the case has prompted debate within political and financial circles, with some calling it a correction of an overreach, while others question the abrupt reversal by the FIA within days of the case being registered.

No official statement from Zaidi or the FIA regarding the reasons for the case’s withdrawal has been issued so far.
Tagged:

FIA

FBR

CorruptionCase

ShabbarZaidi

TaxRefunds
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