ISLAMABAD: The Federal Investigation Agency (FIA) has officially dropped its corruption case against former Federal Board of Revenue (FBR) chairman Shabbar Zaidi, it was announced on Friday. The case was initially registered on Thursday, accusing Zaidi of authorizing improper income tax refunds totaling Rs16 billion during his time leading the FBR.
Sources revealed that the FIA’s Anti-Corruption Unit had alleged Zaidi engaged in criminal misconduct, misused his authority, and disbursed public funds without proper authorization. The agency identified three private banks, two cement manufacturing companies, and one chemical firm as recipients of these refunds. It was also noted that these entities had links to Zaidi’s private audit and consultancy firm prior to his appointment as FBR chairman, raising questions about possible conflicts of interest.
However, a notification from the FIA’s Karachi Division stated: “The Director, FIA Karachi Zone, has approved the cancellation of FIR No. 32/2025 dated 29.10.2025, and has classified the case as ‘C-Class.’ The case will now be closed with a discharge report against the former chairman of FBR, Syed Muhammad Shabbar Zaidi.”
