Pakistan PM Shehbaz Sharif Acquitted in Money Laundering Case as NAB Declares Him Innocent

Key Points

• The National Accountability Bureau (NAB) has submitted a supplementary report to the Accountability Court declaring Pakistan Prime Minister Shehbaz Sharif and his son Hamza Shehbaz as "innocent" in a major money laundering case
• The acquittal comes after years of legal proceedings and multiple arrests since 2018
• The case involved allegations of money laundering of 16.3 billion Pakistani Rupees through fake accounts during 2008 to 2018
• The investigation team had detected 28 Benami (untitled) accounts of the Shehbaz family used for the alleged money laundering
• The report was submitted to the Accountability Court during a hearing conducted by Judge Qamar-ul-Zaman
• Shehbaz Sharif faced multiple arrests in connection with corruption charges, including the Ashiana Housing Scheme and money laundering cases
• The acquittal marks a significant turn in the legal fortunes of the Pakistan Muslim League-Nawaz (PML-N) president and opposition leader

Inverted Pyramid of News Triangle

In a landmark development for Pakistan's political landscape, the National Accountability Bureau (NAB) has declared Prime Minister Shehbaz Sharif and his son Hamza Shehbaz innocent in a high-profile money laundering case, according to reporting by National Herald India on 29 December 2025[5]. The supplementary report submitted to the Accountability Court represents a dramatic reversal in a case that has dominated Pakistani politics for years and resulted in multiple arrests of the PML-N leader.

What Led to the Charges Against Shehbaz Sharif?

The money laundering case against Shehbaz Sharif originated from allegations that he and his family members were involved in illegal transfer of funds through fake accounts[5]. According to National Herald India's reporting, the case was filed by NAB, which alleged that Shehbaz Sharif and his family members were involved in money laundering and illegal transfer of funds through fake accounts[5]. The investigation team had detected 28 Benami (untitled) accounts of the Shehbaz family through which money laundering of 16.3 billion Pakistani Rupees was allegedly committed during 2008 to 2018[5].

In December 2020, the Federal Investigation Agency (FIA) had submitted a challan against the two PML-N leaders before the court for their alleged involvement in laundering an amount of 16 billion PKR in the sugar scam case, as reported by National Herald India[5]. The investigation examined the money trail of 17,000 credit transactions[5]. Shehbaz and Hamza were booked in the case along with Suleman Shehbaz, who was absconding in the United Kingdom, and fourteen other people were also named in the FIR[5].

A History of Arrests and Legal Battles

Shehbaz Sharif's legal troubles began well before the money laundering case. As reported by Asia Times in October 2018, Shehbaz Sharif was arrested by the National Accountability Bureau (NAB) in connection to the 14 billion PKR (US$113.31 million) Ashiana Housing Scheme[1]. According to Shahzad Saleem, the head of a regional anti-corruption body, Shehbaz, the president of Pakistan Muslim League-Nawaz (PML-N), faced charges of graft relating to a low-cost housing scheme in Punjab province[1]. He was alleged to have misappropriated funds from the project[1].

Nawazish Ali Asim, a NAB spokesperson, stated at the time: "Shehbaz Sharif on Friday appeared before an investigation team of the National Accountability Bureau Lahore. He was arrested after he failed to satisfy the investigator for his alleged role in awarding contracts to his favorite firm in violations of rules in the Ashiana Housing scheme and Punjab Saaf Pani Company," as documented by Asia Times[1]. He was then accused of directing the Punjab Land Development Company to hand over the housing scheme to Lahore Development Authority (LDA), which was followed by the arrests of officials, including former LDA chief Ahad Cheema[1].

In September 2020, Shehbaz Sharif faced another arrest. According to WION's reporting on 28 September 2020, Pakistan Muslim League president Shehbaz Sharif was arrested in a money laundering case from the Lahore High Court (LHC)[2]. National Accountability Bureau (NAB) officials took him into custody from the court premises after his bail plea was rejected[2]. The arrest followed the rejection of his interim bail extension bid by the Lahore High Court[2].

As documented by Dawn News in April 2021, Shehbaz Sharif was released from Lahore's Kot Lakhpat central jail after nearly seven months[3]. Sharif was granted post-arrest bail in a money laundering reference by a full bench of the Lahore High Court on Thursday, and his release orders were furnished before the jail authorities on Friday after the PML-N leader submitted surety bonds required by the court order[3]. Kot Lakhpat jail Superintendent Asad Warraich confirmed the release of Sharif who left for his Model Town residence[3].

According to Dawn News, the PML-N president was arrested on 28 September 2020, after the LHC refused to further extend his pre-arrest bail[3]. He was first granted an interim pre-arrest bail on 3 June 2019[3]. He remained in NAB's custody for 23 days till the trial court sent him on judicial remand on 20 October 2020[3]. In the past, Shehbaz Sharif was also arrested by NAB on 5 October 2018 in Ashiana-i-Iqbal Housing Scheme reference and later in Ramzan Sugar Mills case, with the LHC releasing him on bail in both cases on 17 February 2019[3].

How Did the Acquittal Come About?

The path to acquittal was complex and involved significant developments in the investigation. As reported by National Herald India, the report revealed that the amount was kept under "hidden accounts" which were given to Shehbaz Sharif in a personal capacity[5]. This finding appears to have been crucial in the NAB's decision to declare the father-son duo innocent.

The supplementary report was submitted to the Accountability Court and was presented during the hearing conducted by Judge Qamar-ul-Zaman[5]. The decision to declare Shehbaz Sharif and Hamza Shehbaz innocent represents a significant turn in their legal cases and has major implications for Pakistan's political landscape.

What Does This Mean for Shehbaz Sharif's Political Career?

The acquittal comes at a critical time for Shehbaz Sharif, who serves as Prime Minister of Pakistan and as president of the Pakistan Muslim League-Nawaz (PML-N). Throughout his legal battles, Shehbaz Sharif maintained his political positions despite the arrests and legal proceedings. The PML-N party had consistently argued that the cases against their leader were politically motivated.

As reported by Asia Times in October 2018, Malik Ahmed Khan, a spokesman from the PML-N party, stated: "We are assessing the situation and consulting party leadership to prepare a strategy for a future course of action," following Shehbaz's arrest in the Ashiana Housing Scheme case[1]. The party had interpreted the timing of the arrest as a bid to sabotage the party's chances in upcoming by-elections[1].

What Were the Specific Allegations in the Money Laundering Case?

The money laundering case was particularly significant due to the scale of the alleged illegal transfers. According to National Herald India, the investigation team detected 28 Benami (untitled) accounts of the Shehbaz family through which money laundering of 16.3 billion PKR was allegedly committed during 2008 to 2018[5]. The investigation examined the money trail of 17,000 credit transactions[5].

The case involved complex financial arrangements and the alleged use of fake accounts to transfer funds. However, the NAB's supplementary report has now cleared both Shehbaz Sharif and his son Hamza of these allegations, declaring them innocent[5].

How Has This Acquittal Impacted Pakistan's Political Dynamics?

The acquittal of Shehbaz Sharif and Hamza Shehbaz represents a significant development in Pakistan's ongoing political struggles. For years, the cases against the PML-N leaders have been a contentious issue, with the party claiming political persecution and opponents arguing about the rule of law. The NAB's declaration of innocence in the money laundering case strengthens Shehbaz Sharif's position as Prime Minister and validates the PML-N's long-standing assertions about the nature of the charges.

The decision also reflects on the credibility of the NAB and its investigation procedures. The fact that the investigation team examined 17,000 credit transactions and detected 28 Benami accounts, yet ultimately concluded that the charges were unfounded, suggests either a thorough exoneration or raises questions about the initial investigation process[5].

What Was the Role of Other Family Members in These Cases?

Shehbaz Sharif's family has been closely involved in the legal proceedings. His son Hamza Shehbaz was also charged in the money laundering case and has now been acquitted along with his father[5]. Another family member, Suleman Shehbaz, was named in the FIR but was absconding in the United Kingdom[5]. The involvement of multiple family members in the cases had been a significant aspect of the NAB's allegations of a coordinated money laundering scheme.

The acquittal of Shehbaz and Hamza suggests that the evidence against the family was insufficient to sustain the charges, though Suleman Shehbaz's status in the case remains unclear from the available reports.

What Is the Broader Context of Corruption Cases in Pakistan?

The cases against Shehbaz Sharif must be understood within the context of Pakistan's broader anti-corruption efforts and political rivalries. The NAB has been involved in high-profile cases against multiple political figures, and the timing and nature of these cases have often been subject to political scrutiny. The acquittal of Shehbaz Sharif adds to the ongoing debate about the NAB's independence and effectiveness in pursuing genuine corruption cases versus politically motivated prosecutions.

Shehbaz Sharif's journey through the legal system—from his initial arrest in the Ashiana Housing Scheme case in October 2018, through his seven-month detention in 2020-2021, and finally to his acquittal in the money laundering case—reflects the complexities of Pakistan's justice system and the intersection of politics and law enforcement in the country.