KARACHI: The Federal Board of Revenue’s Directorate of Intelligence and Investigation has registered a first information report (FIR) alleging money laundering against a Karachi-based pharmaceutical company and five of its directors over a Rs7.5 billion settlement payment.
According to the FIR, the company, which is linked to a non-profit educational trust running a university and schools, used organisational funds to settle liabilities that were required to be paid by the directors in their personal capacity.
The case originated from a dispute in which the company’s founder and his son filed a suit in the Sindh High Court seeking Rs60 billion in damages against the directors. A settlement was reached in December 2023, under which Rs7.5 billion was to be paid by the five directors.
Officials said the payment was made through the company controlled by the directors and was recorded in its accounts as a business expense under “other indirect expenses”. The amount was also claimed as a deductible expense in the company’s income tax return for Tax Year 2024.
At the same time, the directors did not declare the amount as salary, perquisite or benefit in their individual tax returns for the same year, according to the FIR.
The founder filed a complaint with the FBR’s Directorate of Intelligence and Investigation in Karachi in February 2025. Following an investigation, notices were issued in April 2026 under Section 176(1) of the Income Tax Ordinance, 2001 and the Anti-Money Laundering Act, 2010.
FBR officials said responses from the directors were received but were found unsatisfactory. The FIR was registered on April 23, 2026.
