Pakistan, Iraq sign agreement to improve tax mechanism, economic cooperation

A foreign currency dealer counts US dollars at a shop in Karachi on May 19, 2022. (AFP/File)
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Updated 10 August 2023
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Pakistan, Iraq sign agreement to improve tax mechanism, economic cooperation

  • The agreement aims to prevent double taxation on income of citizens and prevent tax evasion
  • Both governments say the convention will also boost trade activities between the two countries

ISLAMABAD: Pakistan and Iraq’s tax collection bodies have signed a convention to eliminate double taxation on income, prevent tax evasion, and promote economic cooperation between the two countries, said a statement released by the Federal Board of Revenue (FBR) in Islamabad on Thursday.

The first round of negotiations related to the convention took place between the tax delegations of both states in Pakistan’s federal capital between August 7 and 9. The two sides thrashed out multiple issues during in their detailed deliberations before reaching a consensus to sign the draft of the convention.

“The convention will not only provide safeguards against double taxation on the income of the residents of both countries but will also promote economic cooperation and enhance investments,” the FBR statement said.

It added the convention would further strengthen the existing bilateral relations between the two states while providing adequate certainty with respect to taxation rules applicable to cross-border business transactions, dividends, interests, royalties, fees for technical services, and income from automated digital services, among others.

“Taxpayers of both countries will get relief from double taxation resulting in further boosting the trading activities in both countries,” the statement added.

Relations between Pakistan and Iraq have received a boost with a number of ministerial-level exchanges in recent years.

Earlier this month, Pakistan’s former interior minister, Rana Sanaullah, who is part of the outgoing cabinet of Prime Minister Shehbaz Sharif, embarked on an official visit to the Iraqi capital, Baghdad, to discuss a range of bilateral issues with the Iraqi leadership.

In August last year, Iraq’s foreign minister Dr. Fuad Hussein visited Islamabad to discuss ways to strengthen bilateral relations.

 


Lahore chamber of commerce sets up ‘War Fund’ amid Pakistan-India standoff

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Lahore chamber of commerce sets up ‘War Fund’ amid Pakistan-India standoff

  • Fund initially set up with Rs10 million [$35,683] with a target of Rs1 billion [$3,571,429], says state media 
  • Fears of a military confrontation between India and Pakistan loom large since Apr. 22 attack in Kashmir 

ISLAMABAD: The Lahore Chamber of Commerce and Industry (LCCI) has established a War Fund to express solidarity with Pakistan’s armed forces, state-run media reported on Sunday, as Islamabad’s tensions with New Delhi continue to surge. 

The LCCI is one of the most prominent Pakistani chambers of commerce in the country. It represents the interests of the business community, both locally and nationally, with responsibilities including advocacy, trade policy representation and economic regulation.

The LCCI made the announcement as Pakistan’s tensions with India continue to surge following the Apr. 22 attack at a popular tourist resort in Indian-administered Kashmir which killed 26 tourists. New Delhi blames Islamabad for backing perpetrators of the attack, an allegation Pakistan vehemently denies. 

“Lahore Chamber of Commerce and Industry (LCCI) has announced to establish a ”War Fund” to express national solidarity with armed forces during wartime conditions,” state broadcaster Radio Pakistan reported. 

LCCI President Mian Abuzar Shad was quoted by Radio Pakistan as saying that the fund has been initially established with Rs10 million [$35,683], adding that they intended to collect Rs1 billion [$3,571,429] which would be achieved “very soon.”

Fears of a military confrontation between the nuclear-armed nations, who both rule the disputed Kashmir territory in part but claim it in entirety, have surged after Apr. 22. 

Both nations’ forces have traded fire over the Line of Control frontier in Kashmir while diplomats have exchanged barbs and both countries have expelled citizens and ordered their land border shut.

Prime Minister Narendra Modi has given the Indian military the “operational freedom” to respond to the Apr. 22 attack. Pakistan has since then conducted war exercises and vowed that military action from India would result in a “strong” response. 

Several countries such as the US, China, UK, Saudi Arabia, Turkiye and other Middle Eastern nations have called on both India and Pakistan to exercise restraint and avoid an armed confrontation. 


Pakistan reaffirms commitment to translate foreign investment into ‘tangible outcomes’

Updated 04 May 2025
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Pakistan reaffirms commitment to translate foreign investment into ‘tangible outcomes’

  • Deputy PM Ishaq Dar chairs meeting to review progress related to foreign investment initiatives
  • Calls for streamlined processes, institutional coordination and fast-tracked implementation

ISLAMABAD: Pakistan’s Deputy Prime Minister Ishaq Dar this week reiterated the government’s commitment to ensure foreign investment from friendly countries translates into “tangible outcomes,” state-run media reported amid Islamabad’s attempts to achieve sustainable economic progress. 

Pakistan has looked toward regional partners and friendly nations, particularly Gulf states, in the past few months to increasingly attract foreign trade and investment.

At the heart of Islamabad’s efforts lies a prolonged macroeconomic crisis that has drained the country’s revenues, triggered a balance of payment crisis and battered its economy. 

“Deputy Prime Minister and Foreign Minister Ishaq Dar has reiterated the government’s commitment to provide all necessary facilitation to translate foreign investments into tangible outcomes for economic growth and prosperity,” state broadcaster Radio Pakistan reported on Saturday. 

Dar was chairing a high-level meeting in Islamabad on Saturday to review progress related to investment initiatives by friendly countries across infrastructure, energy, petroleum and economic development sectors. 

“The deputy prime minister emphasized streamlined processes, enhanced institutional coordination, and fast-tracked implementation of investment projects,” the report said. 

To fast-track decisions related to international investment, Pakistan formed the Special Investment Facilitation Council (SIFC) in June 2023. 

The SIFC is a hybrid civil-government body formed to attract international investment in priority sectors of the economy such as energy, tourism, agriculture, livestock, mines and minerals, and others. 

Since it was formed, the government says the SIFC has helped it sign memoranda of understanding (MoUs) with several countries worth billions of dollars. 


Karachi, Lahore to reignite ‘ultimate rivalry’ with PSL X clash today

Updated 04 May 2025
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Karachi, Lahore to reignite ‘ultimate rivalry’ with PSL X clash today

  • Lahore beat Karachi by 85 runs on Apr. 30 when the two sides last faced off
  • Karachi beat Multan by 87 runs on May 1 in Pakistan Super League encounter

ISLAMABAD: Karachi Kings and Lahore Qalandars will reignite their Pakistan Super League (PSL) rivalry today, Sunday, when the two teams lock horns at the Qaddafi Stadium in an important clash of the tournament. 

The Qalandars are placed at number three on the PSL points table, winning four matches from their eight fixtures. The Kings have also won only four matches from the seven games they have played and are placed at number four on the table. 

Lahore had the upper hand the last time the two teams met on the field for the PSL X tournament, winning the encounter by 85 runs. 

“Don’t miss the ultimate rivalry #LQvKK today at Qaddafi Stadium!” the PSL wrote on its official social media platforms. 

The Kings will head into the match confident, having beat an out-of-form Multan Sultans squad by 87 runs on May 1. 

The Qalandars have been in fine form as well, demolishing Islamabad United by 88 runs on Apr. 30 before their match against Quetta Gladiators on May 1 ended in a no result tie due to rain. 

Qalandars have had batting success in the form of openers Abdullah Shafique and the explosive Fakhar Zaman while fast bowler Shaheen Shah Afridi has fared impressively as well. 

The Kings will look toward their skipper and opener David Warner, who has been out of form as of late, and Tim Siefert to deliver the goods. 

The intense rivalry between the two franchises has been compared to the India-Pakistan and Australia-England cricket rivalry, with many also using the phrase “El-Clasico of cricket” to describe their clash. 

The match will kick off at 8:00 p.m. Pakistan Standard Time. 


Pakistan to hold key national security briefing for political parties today amid India tensions

Updated 04 May 2025
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Pakistan to hold key national security briefing for political parties today amid India tensions

  • Pakistan has been preparing for possible military confrontation with India ever since Apr. 22 Kashmir attack
  • Parties to be informed about preparation of armed forces and Islamabad’s diplomatic initiatives, says state media 

ISLAMABAD: Pakistan’s information minister and military spokesperson will hold an important national security briefing today, Sunday, for representatives of various political parties amid Islamabad’s surging tensions with Delhi, according to state-run media. 

Pakistan has been preparing for the possibility of a military confrontation with India ever since its tensions with its nuclear-armed neighbor skyrocketed last month. Delhi blamed Islamabad for being involved in a militant attack on Apr. 22 at a tourist resort in Indian-administered Kashmir that killed 26 tourists. 

Pakistan denied involvement and as India vowed to go after backers of the Kashmir attack, Islamabad vowed it would give a “strong” response to any military action by India. 

“Federal Minister for Information and Broadcasting Attaullah Tarar and Director General Inter-Services Public Relations (ISPR) Lt. Gen. Ahmed Sharif Chaudhry will hold an important background briefing on the national security for representatives of all political parties on Sunday,” the Associated Press of Pakistan (APP) reported on Saturday.

It said the briefing would primarily focus on the prevailing national security landscape, particularly concerning relations between Pakistan and India, and its broader implications. 

Political parties will be informed about the preparedness of Pakistan’s armed forces while information about ongoing diplomatic initiatives and Islamabad’s official stance on the situation will also be shared, it added. 

“The statement said that the briefing, in the current situation, is a prime example of national unity and consensus among all the parties,” APP said. 

As tensions surge between the two neighbors, their forces have traded fire over the Line of Control frontier in Kashmir while diplomats have exchanged barbs, expelled citizens and ordered their land border shut.

Pakistani opposition parties have in recent times become more openly critical of the military, which has been accused of being heavily involved in politics and the economy. The military denies the allegations. 

However, recent tensions with India have turned bitter political foes into temporary allies. 

When the Senate voted on an anti-India resolution last month, jailed former prime minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party voted in favor, ensuring it passed unanimously.


Pakistan plans media visit to de facto Kashmir border to counter Indian reports of militant camps

Updated 04 May 2025
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Pakistan plans media visit to de facto Kashmir border to counter Indian reports of militant camps

  • The trip has been organized by the information ministry and is expected to take place on Monday
  • Information minister, military spokesperson will brief politicians on Pakistan-India tensions today

ISLAMABAD: Pakistan plans to take local and foreign journalists to the Line of Control (LoC), the de facto border separating the two parts of the disputed Himalayan region of Kashmir, on Monday, following Indian media reports alleging the presence of militant camps on the Pakistani side.
According to the state-owned Associated Press of Pakistan (APP), the trip has been organized by the information ministry and was originally planned for Sunday. However, it had to be postponed due to a weather forecast predicting inclement conditions.
The media visit has been planned less than two weeks after the April 22 gun attack in Pahalgam, a tourist destination in Indian-administered Kashmir, that killed 26 people.
Security sources say the visit will allow journalists to investigate claims made in recent Indian media reports identifying several locations allegedly used as militant camps.
“Journalists will be taken to all the areas mentioned in recent reports to independently verify the claims,” a security official said on condition of anonymity. “Pakistan rejects these allegations and considers them part of a propaganda effort.”
Recent Indian news reports named various towns and villages near the LoC and claimed that militant groups had vacated camps ahead of potential Indian strikes. Pakistani authorities have dismissed the claims of militant presence and camps as baseless.
Meanwhile, Federal Minister for Information and Broadcasting Attaullah Tarar and military spokesperson Lt. Gen. Ahmed Sharif Chaudhry are also scheduled to brief leaders of Pakistan’s political parties on Sunday, said a report in Radio Pakistan.
“The high-level background briefing will focus on the current state of national security, particularly in the context of Pakistan-India relations and the implications of recent developments,” it said.
“Participants will be briefed on the defensive preparedness of Pakistan’s armed forces, ongoing diplomatic efforts, and the official stance of the state on key issues,” the report added.