KARACHI, Oct 31: The Federal Investigation Agency (FIA) has registered a case against former Federal Board of Revenue (FBR) chairman and prominent chartered accountant Shabbar Zaidi, accusing him of issuing unauthorised income tax refunds worth Rs16 billion during his tenure under the Pakistan Tehreek-i-Insaf (PTI) government.
According to officials familiar with the development, the FIA’s Anti-Corruption Circle has charged Mr Zaidi with criminal misconduct, abuse of authority, and unauthorised disbursement of public funds while heading the tax authority.
Sources said the case pertains to substantial tax refunds allegedly issued to three private banks, two cement manufacturers, and one chemical company. The FIA claims these entities had previously been clients of Mr Zaidi’s private audit and consultancy firm before his appointment as FBR chairman — a connection investigators say raises potential conflict-of-interest concerns.
Sources said the FIA’s Anti-Corruption Circle had accused Zaidi of criminal misconduct, abuse of authority, and unauthorised disbursement of public funds.https://t.co/lzR2BDEL9U
— Dawn.com (@dawn_com) October 31, 2025
The FIR, officials added, accuses the former FBR chief of authorising or facilitating the refunds without proper verification and allegedly bypassing established procedures within the tax administration.
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Mr Zaidi, a senior partner at the audit firm A.F. Ferguson & Co. before joining the FBR in 2019, served as the country’s top tax official for less than two years, resigning in early 2020 citing health issues.
Neither Mr Zaidi nor his legal representatives have yet issued a public statement in response to the allegations.
The FIA investigation forms part of a broader federal crackdown on suspected irregularities in tax refund cases and alleged misuse of public office by former officials.
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