The Federal Investigation Agency (FIA) has officially withdrawn the First Information Report (FIR) filed against former Federal Board of Revenue (FBR) chairman Syed Shabbar Zaidi over allegations of unauthorised income tax refunds amounting to PKR 16 billion.
The case alleged that multiple companies from the banking, cement, and chemical sectors—reportedly clients of Zaidi’s private audit and consultancy firm—had benefited from the disputed refunds, raising concerns about a potential conflict of interest during his tenure.
According to a notification issued by the FIA Karachi division, permission has been granted for the cancellation of FIR No. 32/2025 (dated October 29, 2025) and the case has been classified as “C-Class”, effectively discharging the subject.
The withdrawal of the case has prompted debate on tax governance, refund control mechanisms, and conflict-of-interest safeguards within Pakistan’s tax administration framework.
