FIA books ex-FBR chief Zaidi over Rs16bn in ‘unauthorized’ tax refunds
- Probe targets payouts to HBL, Engro, MCB, SCB, DGKC, Maple Leaf from 2005–17
- HBL’s Rs10bn Gain Puts Finance Minister Aurangzeb Under Spotlight
The Federal Investigation Agency (FIA) has lodged a corruption case against former Federal Board of Revenue (FBR) chairman Shabbar Zaidi, accusing him of authorising illegal tax refunds worth Rs16 billion to major corporations during his brief tenure as the country’s top tax ch
According to the first information report (FIR) filed with the FIA Anti-Corruption Circle in Karachi, the refunds were allegedly issued to companies that had been clients of Zaidi’s accounting firm before his appointment as FBR chairman in May 2019. He resigned from the position in January 2020.
The FIR, registered on October 29 under Section 5(2) of the Prevention of Corruption Act, 1947, and Section 109 of the Pakistan Penal Code, names Zaidi as the key suspect in a case involving massive financial irregularities. Assistant Director Nand Lal has been assigned to investigate the matter.
The document alleges that Rs10 billion was refunded to Habib Bank Limited (HBL), Rs2 billion to Engro Corporation, Rs1.5 billion each to Standard Chartered Bank (SCB) and Muslim Commercial Bank (MCB), Rs0.5 billion to DG Khan Cement, and Rs0.7 billion to Maple Leaf Cement — all “unauthorisedly disbursed” during Zaidi’s tenure.
Interestingly, HBL — the biggest beneficiary with Rs10 billion — was led at the time by the current finance minister, Muhammad Aurangzeb, potentially bringing his role under scrutiny.
It further claims that on September 29, 2019, Rs8.96 billion was issued to HBL “in collusion with FBR staff,” transferred to the bank’s Treasury Division through 89,645 income tax bonds worth Rs100,000 each, maturing in 2022.
The refunds reportedly pertained to tax years 2005, 2006, 2007, 2012, 2013, 2014, 2016, and 2017. The alleged irregularities occurred at HBL’s Plaza Branch on II Chundrigar Road, Karachi.
Zaidi, a prominent chartered accountant and former senior partner at AF Ferguson & Co (PwC Pakistan), has yet to publicly respond to the allegations.
