KARACHI: The Federal Investigation Agency (FIA) has withdrawn a corruption case filed against former Federal Board of Revenue (FBR) chairman Shabbar Zaidi, a day after booking him on charges of issuing unauthorised income tax refunds worth Rs16 billion during his tenure.
According to the FIA, three private banks, two cement factories, and one chemical company were among the beneficiaries of these refunds.
The agency had alleged that these entities were clients of Zaidi’s private audit and consultancy firm prior to his appointment as FBR chairman, raising concerns of conflict of interest.
However, a notification issued by the FIA’s Karachi zone on Thursday 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.”
The case was withdrawn after a review of the investigation record and documentary evidence, with officials saying the inquiry did not establish any criminal intent or misuse of authority.
Zaidi, who served as FBR chairman during the PTI government, had earlier rejected the allegations as “baseless” and politically motivated, maintaining that all tax refunds were issued in accordance with established rules and procedures.