FIA cancels corruption case against former FBR chief Shabbar Zaidi

The Federal Investigation Agency (FIA) has withdrawn a corruption case against former Federal Board of Revenue (FBR) chairman Syed Muhammad Shabbar Zaidi, according to media reports.

The case, initially registered on Thursday, involved allegations that Zaidi had authorised income tax refunds worth Rs16 billion without proper authorisation during his tenure as FBR chairman.

The reports said the FIA’s Anti-Corruption Circle had accused him of criminal misconduct, abuse of authority, and unauthorised disbursement of public funds.

According to the FIA, the refunds were claimed by three private banks, two cement factories, and one chemical company, which were reportedly clients of Zaidi’s private audit and consultancy firm prior to his appointment. The agency had suggested that this represented a potential conflict of interest.

However, the Karachi division of the FIA issued a notification on Thursday stating:

“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.”