Pakistan’s Supreme Court dismissed the State’s delayed petitions on August 3, 2026, bringing an end to the legal proceedings against Axact founder Shoaib Ahmed Shaikh and other company executives.
Pakistan’s Supreme Court has brought an end to the 11-year legal battle surrounding Axact and its founder, Shoaib Ahmed Shaikh, by dismissing the State’s petitions challenging their acquittals in cases linked to allegations of operating a fake degree business.
The Supreme Court dismissed the petitions on August 3, 2026, ruling that they had been filed beyond the prescribed legal time limit. The court also rejected the government’s request to condone the delay, leaving the earlier acquittals intact.
The development follows separate acquittal decisions by the Sindh High Court, Islamabad High Court and a Special Court in Islamabad. According to a November 9 press release issued by Axact, the decisions have brought all legal proceedings connected to the 2015 allegations to a close.
Sindh High Court Finds Insufficient Evidence
One of the major developments occurred on March 10, 2023, when the Sindh High Court acquitted Shaikh and other members of Axact’s management in the Karachi case.
The court observed that the prosecution had failed to establish the allegations through credible evidence. Investigators had not produced any victims, forged documents or other material demonstrating that Axact had sold fake degrees.
The prosecution initially listed 91 witnesses but subsequently dropped 64. The court noted that the State had failed to establish that anyone had been defrauded or that the company had prepared forged educational documents.
It also criticised the authorities for pursuing the case for eight years without collecting sufficient evidence.
Islamabad High Court Overturns Conviction
The Islamabad case followed a separate legal process. A court initially acquitted Shaikh and other accused individuals on October 31, 2016.
However, the State subsequently challenged the acquittal over allegations that the judge had received a bribe. A retrial in 2018 resulted in a conviction.
On November 22, 2023, the Islamabad High Court overturned that decision and acquitted Shaikh and the other accused.
The High Court referred to Article 13 of Pakistan’s Constitution, which provides protection against double jeopardy, or being prosecuted and punished twice for the same offence.
Special Court Acquits Shaikh in Bribery Case
Another legal proceeding ended on December 4, 2023, when the Special Court (Central) in Islamabad acquitted Shaikh in a separate bribery case.
The prosecutor and investigating officer informed the court that they had found no evidence against the accused. The court subsequently concluded that the charges could not succeed without supporting evidence.
Supreme Court Decision Ends Legal Proceedings
The final development came on August 3, 2026, when the Supreme Court dismissed the State’s petitions against the acquittal decisions.
The court found that the petitions were time-barred and that the government department had failed to provide sufficient justification for the delay.
Consequently, the earlier acquittals attained finality, ending the legal proceedings covered by the petitions.
Axact Case and Its Impact on Pakistan’s IT Industry
The allegations against Axact emerged in May 2015, shortly before the planned launch of its media network, BOL. Authorities closed the company’s Islamabad offices within hours of the allegations and also seized its Karachi offices.
According to Axact’s press release, the legal action affected approximately 15,000 employees.
The company also highlighted the impact on Pakistan’s information technology exports, claiming that it generated $355 million out of the country’s total IT exports of $432 million in 2014. It further claimed that national IT exports subsequently fell to $55.1 million.
Axact said the controversy also affected BOL’s planned launch and attracted widespread media attention.
Axact Moves Towards Artificial Intelligence
According to the company, its business operations subsequently shifted towards artificial intelligence, with a focus on developing software for document management, customer service, sales and customer support.
With the Supreme Court’s dismissal of the State’s petitions, Axact says the legal proceedings connected to the 2015 allegations have concluded.
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