FIA Registers Case Against Former FBR Chairman Shabbar Zaidi Over Rs. 16 Billion Refunds

Former FBR chairman Shabbar Zaidi has been booked by the Federal Investigation Agency for allegedly approving unauthorized tax refunds worth Rs. 16 billion during his tenure. The FIA’s Anti-Corruption Circle has registered a case, accusing Mr. Zaidi of criminal misconduct, abuse of authority, and causing financial loss to the national exchequer. According to FBR documents and the investigation record shared by the FIA, the refunds were allegedly issued without mandatory verification and approval. The refunds were granted to three private banks, two cement manufacturers, and one chemical company. Investigators claim these businesses were clients of Mr. Zaidi’s private audit and advisory firm before he was appointed to lead the tax authority. The FIA has termed this a potential conflict of interest and a breach of public office ethics. The FIR states that public funds were disbursed in violation of established audit controls, refund procedures, and FBR’s internal review system. Zaidi served as head of the FBR during the PTI government and resigned in early 2020 citing health issues. Through his public statements in the past, he has denied any wrongdoing during his tenure, and has repeatedly stated that reforms were resisted by internal lobbies. The FIA says further arrests and financial scrutiny of the refund recipients may follow as the inquiry expands.