Pakistan, Bangladesh begin double taxation treaty revision

December 23, 2025 (MLN): Pakistan and Bangladesh have opened negotiations to revise their bilateral tax treaty, with technical teams from both countries meeting in Islamabad this week to align the agreement with current international standards.

A delegation from Bangladesh's National Board of Revenue (NBR) arrived in Pakistan on December 22 for five days of talks focused on amending the Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income. 

Muhammad Lutful Azeem, Member for International Taxes at NBR, is leading the Bangladeshi team, which includes senior tax officials and policy experts, according to the press release. 

The Pakistani side is represented by the Federal Board of Revenue's international tax division under Director General Aftab Alam.

The treaty revision comes as both countries seek to reduce tax barriers for cross-border businesses and investors. 

Double taxation agreements typically specify which country can tax different types of income, preventing companies and individuals from paying taxes twice on the same earnings.

Bangladesh High Commissioner Md. Iqbal Hussain Khan met with FBR Chairman Rashid Mahmood Langrial, where both officials committed to expanding bilateral trade volumes and economic cooperation. 

The two sides agreed that modernizing the tax treaty would support these broader commercial objectives.

Current trade between Pakistan and Bangladesh remains modest compared to their economic potential, with both countries identifying tax policy coordination as one element in building stronger business linkages.

Both tax authorities have committed to regular institutional exchanges on international taxation matters beyond this week's negotiations.

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