FIA Drops Rs. 16 Billion Refund Case Against Ex-FBR Chief Shabbar Zaidi

The Federal Investigation Agency has ordered cancellation of the case filed against former FBR chairman Shabbar Zaidi over alleged unauthorized tax refunds. According to an official letter issued by the FIA Karachi Zone, the case registered on October 29, 2025 has now been classified as “C-Class,” meaning the accused is neither exonerated nor convicted and the matter is not being pursued for trial. The FIA has directed the inclusion of the case in Column No. 2 of the court record. This category is typically applied when allegations are not supported by sufficient evidence for prosecution. The cancelled case had accused Shabbar Zaidi of authorizing income tax refunds worth Rs. 16 billion during his tenure as FBR chairman in the PTI government. Earlier FIA documents alleged that three private banks, two cement factories, and one chemical company benefited from these refunds. The agency also claimed those entities were clients of Zaidi’s private audit firm before his appointment to FBR, raising concerns of conflict of interest. The Anti-Corruption Circle had initially charged Zaidi with criminal misconduct and illegal disbursement of public funds. Zaidi has repeatedly denied wrongdoing, insisting that the refunds were issued through legal procedures. With the latest decision, FIA Karachi has sought court approval to formally close the proceedings.