Federal Board of Revenue (FBR) has registered a First Information Report (FIR) alleging money laundering involving billions of rupees paid through the account of a non-profit organisation linked to a Karachi-based pharmaceutical company and its directors.
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According to the FBR’s Directorate of Intelligence and Investigation, the case centres on a Rs7.5 billion settlement reached in December 2023 following a legal dispute filed in the Sindh High Court. The settlement amount, which was to be paid personally by five directors, was allegedly paid using company-controlled funds instead.
The company reportedly recorded the payment as a “business expense” under indirect costs and claimed it as a deductible item in its income tax return for Tax Year 2024. Meanwhile, the directors allegedly failed to declare the amount as personal income or benefit in their individual tax filings.
The matter came under scrutiny after a complaint was filed in February 2025 by the company’s founder. Following an investigation spanning over a year, the FBR issued notices under the Income Tax Ordinance, 2001, and the Anti-Money Laundering Act, 2010, to the directors in April 2026.
Officials stated that the responses received were unsatisfactory and lacked supporting evidence, prompting the registration of the FIR on April 23, 2026.
The controversy gained public attention after lawyer Zahid F Ebrahim criticised the process on social media, alleging procedural irregularities and calling the move a “shakedown.”
However, FBR officials defended their actions, stating that separate notices were issued for civil tax liability and criminal investigation purposes, following due legal procedure.
Authorities further revealed that the non-profit status of the associated organisation had already been revoked by the Large Taxpayers’ Office in Karachi, citing misuse of donation funds for personal benefit — an allegation now central to the ongoing case.
