The Federal Investigation Agency (FIA) has withdrawn a corruption case against former Federal Board of Revenue (FBR) chairman Syed Muhammad Shabbar Zaidi, only a day after registering it, officials confirmed on Friday.
A notification issued by the FIA’s Karachi Zone stated that the Director “has been pleased to accord permission for cancellation of case FIR No. 32/2025 dated 29.10.2025,” and ordered its classification as C-Class along with submission of a discharge report against the former FBR chief.
The now-cancelled case was filed by the FIA’s Anti-Corruption Circle on Thursday, alleging that Zaidi had issued unauthorised income tax refunds worth Rs16 billion during his tenure as FBR chairman. The agency accused him of criminal misconduct, abuse of authority, and unlawful disbursement of public funds.
According to FIA documents, the refunds in question benefitted three private banks, two cement manufacturers, and a chemical company — all of which were clients of Zaidi’s private audit and consultancy firm prior to his appointment to the FBR. The agency had earlier claimed that this overlap raised potential conflict-of-interest concerns.
With the withdrawal of the case and its reclassification, the FIA’s move effectively clears Zaidi of the corruption allegations less than 24 hours after they were formally registered.
