The Federal Investigation Agency (FIA) has ordered the cancellation of the case against former Federal Board of Revenue (FBR) chairman Shabbar Zaidi concerning alleged unauthorized tax refunds.
According to an official letter from the FIA Karachi Zone, the case, registered on October 29, 2025, has been classified as “C-Class.” This means that while Zaidi is neither acquitted nor convicted, the matter will not proceed to trial. The FIA has instructed that the case be listed under Column No. 2 of the court record, a category applied when allegations lack sufficient evidence for prosecution.
READ MORE: FIA Drops Rs. 16 Billion Refund Case Against Ex-FBR Chief Shabbar Zaidi
The case had accused Zaidi of authorizing income tax refunds worth Rs. 16 billion during his tenure in the PTI government. FIA documents earlier claimed that three private banks, two cement factories, and one chemical company benefited from these refunds and noted that these entities were former clients of Zaidi’s private audit firm, raising potential conflict-of-interest concerns.
The Anti-Corruption Circle had initially charged Zaidi with criminal misconduct and illegal disbursement of public funds. Zaidi has consistently denied any wrongdoing, maintaining that the refunds were issued according to legal procedures. Following the FIA’s latest decision, court approval is being sought to formally close the case.
