A five-judge bench headed by Justice Tasadduq Jilani declared illegal the appointment of National Accountability Bureau Chairman Fasih Bokhari. The court directed the federal government to appoint a new chairman.
Bokhari, a former chief of the Pakistan Navy, was appointed head of NAB in October 2011.
The apex court removed him in response to a petition filed by senior PML-N leader Chaurdhy Nisar Ali Khan, who contended Bokhari's appointment had violated provisions of the NAB Ordinance.
Khan had said in his petition that the Leader of Opposition in parliament was not consulted during the appointment process.
Bokhari is considered to be close to President Asif Ali Zardari and NAB had conducted several high-profile investigations into allegations of corruption during the term of the previous Pakistan People's Party-led government.