The Federal Investigation Agency has filed a case against former FBR chairman Shabbar Zaidi for allegedly approving unauthorized tax refunds worth Rs16 billion during his time in office.
Shabbar Zaidi’s FIA case was registered under the Anti-Corruption Circle in Islamabad. The agency accused the former tax chief and several FBR officials of approving and releasing illegal income tax refunds without following the proper audit process.
According to FIA documents and media reports, the refunds were issued between May 2019 and January 2020. During that time, Shabbar Zaidi served as chairman of the Federal Board of Revenue.
The Shabbar Zaidi FIR mentions that the refunds were processed manually, ignoring the FBR’s electronic checking system. This allowed payments to be made without the usual verification process.
Investigators said that three private banks, two cement producers, and one chemical company received these refunds. The FIA alleged that these companies were earlier clients of Zaidi’s private audit and consultancy firm before his appointment as FBR chief. This raised concerns about a conflict of interest.
What FIA Found in the Investigation
The FIA said the refunds were issued without approval and that several FBR officers helped in processing the transactions. Officials said the inquiry started after a credible source report confirmed the illegal disbursement of Rs16 billion in public funds. The case was filed under the Anti-Corruption Act, 1947, and sections of the Pakistan Penal Code.
FIA has requested records from the FBR and the State Bank of Pakistan to confirm details of the transactions and the companies involved. Investigators said more names could be added to the case as the investigation continues.
