The government has redrafted the bilateral investment treaty and avoidance of double taxation with Kuwait and sent it to the government of Kuwait for approval. Officials of the two countries had met recently and had finalised the draft of the agreement. "Some little changes have been made in the draft, but no major alteration has been put in the renewed agreement", sources said.
They said that under international obligation, Pakistan must revisit the BIT and Avoidance of double taxation with Kuwait after ten years to match various clauses and provisions to current economic co-operation accordingly. The draft agreement was signed by Cabinet Committee and forwarded to the government of Kuwait for approval. "If Kuwait government does not raise any objections, the draft agreement will stand as the final agreement", sources added.
First BIT and avoidance of double taxation with Kuwait was signed on March 17, 1983. An official of Embassy of Kuwait in Islamabad told Business Recorder that revisiting the agreement would help to enhance the outflow of skilled labour and professionals to Kuwait. "Some 165,000 skilled workers from Pakistan have work visas. The number of workers can further increase after re-inking of BIT agreement", he said. The official said that private business communities of both countries could also enjoy greater benefits after the agreement.