On April 18, 2018, Pakistani singer Meesha Shafi alleged that Ali Zafar had sexually harassed her. Under the hashtag #MeToo, Meesha stated in a Twitter (now X) post that she was obliged to speak up. Singer-actor Ali Zafar denied all the allegations and filed a defamation case against Shafi, which concluded last week. Judge Asif Hayat ruled that the tweet was "false, defamatory and injurious". The judge also decreed that she was to pay PKR 5 million in damages on account of injury to reputation, dignity and mental anguish.

Judge Asif Hayat, who is the additional district judge in Lahore, wrote in his 159-page judgment that the allegations have not been proven to be true or made for public good and thus 'constitute actionable defamation'. It included various witness testimonies from both sides as well as Ali Zafar and Meesha Shafi's own testimonies in court.

Meesha Shafi later responded on her Instagram, saying, "to those celebrating what they call a 'loss', look again. This was not a loss. This was history.'

Ali Zafar took to his social media later and wrote, "Grateful to God and to everyone who stood by me and by the truth during some testing times in my life. Justice has finally been done. I feel no triumph, only humility and gratitude. I hold no ill feelings towards anyone. For me, this chapter is now closed. I pray we can all move forward with grace and peace."

The issue had largely polarised Pakistani social media, with supporters and detractors on both sides. Meesha Shafi was represented by Advocate Saqib Jillani whereas Ali Zafar was represented by Advocate Umer Tariq Gill.