ISLAMABAD – In a dramatic turn of events, the Federal Investigation Agency’s (FIA) Corporate Crime Circle, Karachi, has once again tightened the noose around the prestigious Institute of Business Administration (IBA).
In its latest communication dated 18th September 2025, the FIA formally invoked Section 25 of the Anti-Money Laundering Act 2010, demanding an exhaustive set of records from IBA and its affiliated entities — including the high-profile Friends of IBA Trust (FIBAT). The inquiry, registered as INQ 31/2025, had earlier hit a legal snag when the IBA management managed to obtain a temporary suspension order from the Sindh High Court. But in a dramatic reversal during today’s hearing, the court recalled its interim order and gave FIA the green light to continue with the inquiry without any hurdle or impediment.
The FIA suspects that the executive management of IBA Karachi has been involved in large-scale money laundering of public institutional funds. These funds, received through federal and provincial HEC grants as well as private donations, were allegedly siphoned off through “hand-picked” contractors and vendors via IT, infrastructure, and procurement contracts. The proceeds, FIA believes, have not only been misappropriated locally but also laundered abroad in the form of immovable and movable properties — raising the stakes of the inquiry to an unprecedented level.
What FIA wants from IBA:
The agency has demanded an extensive set of documents covering the period January 2020 to date, including but not limited to:
Audited financial statements of IBA and its affiliated trusts (2020–2024)
Detailed records of grants and donations from HEC, Sindh HEC, and international donors
Bank statements of IBA and its trusts
Procurement files, vendor contracts, tender processes, and payment trails
Internal and external audit reports
Trust deeds, governance structures, and lists of trustees with CNICs
Records of foreign tours undertaken by IBA executives on institutional funds
SOPs on finance, procurement, HR, and conflict of interest policies
The FIA has summoned the Director Finance of IBA to personally appear before Assistant Director Umayad Arshad Butt at FIA’s Karachi office on 22nd September 2025 at 10 AM, bringing all the certified records “without fail.”.. This development raises serious questions. Has one of Pakistan’s most prestigious academic institutions become a hub of financial misconduct? Will IBA’s top management face criminal liability under the Anti-Money Laundering Act? Or will the inquiry expose a far deeper network of corruption involving donors, contractors, and insiders? The next few days promise to be explosive.