The Federal Cabinet will approve the amendments in existing Avoidance of Double Taxation and Prevention of Fiscal Evasion Agreement between Pakistan and China.
Official sources told Business Recorder on Monday that the CBR has moved a proposal to the Cabinet pertaining to the changes in the convention between the two countries.
It is expected that the Cabinet in its upcoming meeting on April 12 (Wednesday) would approve the agreement inked back in 1989 between the two countries.
Following the approval of the amendments, the government would allow income tax exemption to Export and Import Bank of China, Agriculture Development Bank of China and State Development Bank of China on their investment in Pakistan. All these three banks are 100 percent owned by the Chinese government.
In this regard, the section 11(3) (C) of the convention would be amended to allow the Chinese banks to carry out financial projects in Pakistan.
The State Bank of Pakistan (SBP) has no objection regarding amendment in the agreement.
Sources said the amendments would be instrumental in improving bilateral relationship and economic co-operation.
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