Zia Chishti’s finances under stress as recent US filings highlight cash crunch

Recent US court filings tied to litigation between The Resource Group International Limited (TRGI) and its former CEO Zia Chishti suggest his financial position is under increasing strain, as creditors circle a shrinking and less liquid asset base.

Chishti resigned from TRG in November 2021 after a US Congressional hearing disclosed an arbitration award against him for sexual harassment and assault. Following his resignation, he has sought to regain control of TRG, which management says would irreversibly damage the value of its assets due to his reputation.

This prolonged battle for control of TRG has emerged as one of Pakistan’s most significant corporate governance disputes, with shareholders waiting for the outcome with growing anticipation.

Also read: TRG International says Bermuda court ordered transfer of Zia Chishti’s shares to court receiver

Documents filed in March and April 2026 in Case No. 1:25-cv-01021-JSR in the Southern District of New York state that Chishti could not have reasonably believed that he would be able to satisfy his growing debts—including his tax liability, the loan facility for which he had pledged TRG-P shares under his and his wife’s names, and mounting legal costs—as they became due by selling his TRG-P shares, a practice from which he had been enjoined indefinitely.

The centerpiece of the dispute remains a 2025 arbitration award in favour of TRGI totaling approximately $9.05 million, of which roughly $8.4 million remains unpaid. TRGI is now seeking enforcement against assets held both by Chishti and in the name of his wife, and has already secured a transfer of Chishti’s shares in TRGI to a receiver in Bermuda.

The filings also indicate that the Internal Revenue Service is actively pursuing Chishti for more than $10 million in unpaid tax liabilities arising from over $60 million he received from TRGI-related transactions in 2022.

As per the documents, Chishti had sufficient liquidity to pay these taxes when he filed in 2023 but chose not to do so, instead deploying those funds toward legal and other expenses. He now claims to have less than $70,000 in liquid assets and only “mere thousands” readily available in the US, rendering him unable to meet those obligations.

A central battleground in the enforcement litigation in the United States is the transfer of substantial wealth primarily in 2022 and 2023 by Chishti to his wife, which was then used to acquire assets in her name. Court filings describe transfers of approximately $18 million in late 2022 alone to fund purchases of TRG Pakistan Limited (TRG-P) shares, along with additional multi-million dollar transfers in 2023. In parallel, roughly $14 million was invested into the startup Isbei, largely funded by Chishti through equity injections and shareholder loans, The Nation said in a report.

Also read: Legal pressures grow on ex-TRG CEO Zia Chishti in US, Bermuda over taxes and asset transfers

In January 2026, the Supreme Court of Bermuda ordered immediate transfer of all shares held by former chairman Zia Chishti in the TRGI to a court-appointed receiver for sale, with proceeds to be applied toward satisfying an outstanding arbitration award. The ruling was a major setback for Chishti’s attempts to regain control of the TRG group, centered on its Pakistan Stock Exchange-listed affiliate, TRG Pakistan Limited.

Chishti faces mounting financial pressure, including the arbitration award, a defaulted 2022 JS Bank loan of roughly PKR 2.5 billion, and reported unpaid US taxes exceeding $10 million.

In a past US enforcement hearing, Chishti said he intended to repay his non-tax liabilities—estimated at over $25 million—via retroactive indemnification of legal expenses following a takeover of TRG Pakistan and TRGI. The Bermuda ruling, however, made that strategy increasingly uncertain.

Disclaimer: A board member associated with Business Recorder also serves on the board of TRG. All opinions remain independent.