Pakistan and Economic Co-operation Organisation (ECO) countries will chalk out a framework for establishment of ECO Development Bank, ECO Reinsurance Company and develop co-operation among the tax authorities of member countries for sharing information on tax practices along with treaties on avoidance of double taxation among the member countries.
Sources told Business Recorder here on Wednesday that Pakistan has proposed to form "representative expert committee" for identifying areas/modalities for carrying out conventions on avoidance of double taxation with the ECO member countries in the forthcoming ECO-finance ministers meeting, scheduled for January 30 in Islamabad.
The government has given assignment to Central Board of Revenue (CBR) Chairman Riaz Ahmed Malik to do necessary spadework for working out conventions with the ECO member states.
The details revealed that Pakistan has signed agreement on avoidance of double taxation with Turkey, Kazakhstan, Turkmenistan and Azerbaijan. However, existing convention with Iran covers limited areas, while comprehensive convention has to be signed between the two countries.
Kyrgyz Republic and Pakistan have drafted agreement on avoidance of double taxation, but it is yet to be signed and enforced. Moreover, the cabinet has authorised the government to start negotiations with Tajikistan for the agreement.
Similarly, Pakistan has yet not signed any agreement with Afghanistan.
The sources said that the ECO meeting would also evolve a framework for co-operation among the central banks of the member countries. It would focus on developing a framework for sharing information on banking practices, promoting establishment of member countries banks, establishment of ECO Development Bank, establishment of ECO Reinsurance Company, co-operation in the field of security printing of bank notes and other security documents, technical co-operation in the field of banking and finance.
The meeting would learn from the experience of ECO member countries in promoting macro-economic stability and growth, implementing structural reforms in different sectors of economy, dealing with multilateral financial institutions, accessing international capital markets for sovereign financing and management of national foreign exchange reserves in a dynamic international financial market.
The ECO member countries will chalk out a framework for promotion of investment and trade in member countries with main focus on developing a framework for sharing of information on investment and trade opportunities in the member countries, evolving a framework for protecting investment by the member countries investors and developing uniform investment policies.
The sources said that the audit institutions of member countries would focus on adopting measures to promote more effective co-operation and developing a framework to share experiences of member countries.
It would also devise a framework for co-operation among the securities and exchange commissions.
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