FBR Files FIR in Rs7.5B Pharma Money Laundering Case

The Directorate of Intelligence and Investigation of the Federal Board of Revenue (FBR) has registered a first information report (FIR) alleging money laundering against a Karachi-based pharmaceutical company and five of its directors in connection with a Rs7.5 billion settlement payment, according to a report by The News.

As per the FIR, the company—linked to a non-profit educational trust operating a university and multiple schools—allegedly utilised organisational funds to discharge liabilities that were required to be settled by the directors in their personal capacity.

The matter stems from a legal dispute in which the company’s founder and his son initiated proceedings before the Sindh High Court, seeking damages amounting to Rs60 billion against the directors. The dispute was resolved through a settlement in December 2023, under which the five directors were obligated to collectively pay Rs7.5 billion.

Officials stated that the payment was routed through a company under the control of the directors and was recorded in its financial statements as a business expense under “other indirect expenses.” The same amount was subsequently claimed as a deductible expense in the company’s income tax return for Tax Year 2024.

Concurrently, the directors did not disclose the amount as salary, perquisite, or benefit in their respective individual tax filings for the same tax year, as noted in the FIR.

The complaint was lodged by the founder with the FBR’s Directorate of Intelligence and Investigation in Karachi in February 2025. Following an inquiry, notices were issued in April 2026 under Section 176(1) of the Income Tax Ordinance, 2001, as well as under the Anti-Money Laundering Act, 2010.

FBR officials indicated that responses submitted by the directors were reviewed but deemed unsatisfactory, leading to the formal registration of the FIR on April 23, 2026.