The Federal Investigation Agency has withdrawn a corruption case filed against former Federal Board of Revenue (FBR) chairman Shabbar Zaidi, it emerged on Friday.
On Thursday, the FIA arrested him on allegations of issuing unauthorized income tax refunds worth Rs 16 billion during his tenure as FBR chairman. Sources said the FIA Anti-Corruption Circle had accused Zaidi of criminal conduct, abuse of authority and unauthorized disbursement of public funds.
According to the FIA, three private banks, two cement factories and a chemical company were the beneficiaries of these refunds. The agency alleged that these entities were clients of Zaidi’s private audit and consulting firm before his appointment as FBR chairman, raising concerns about conflict of interest.
However, a notification issued by the agency’s Karachi division on Thursday said: “The FIA Karachi Zone Director has been pleased to grant permission for cancellation of case FIR No. 32/2025 dated October 29, 2025… as well as classification of the case as ‘Class C’ and submission of discharge report… against the then FBR Chairman (1) Syed Muhammad Shabbar Zaidi.”
