In a move that could reshape economic relations between two historically intertwined nations, Bangladesh is pushing for deeper tax cooperation with Pakistan—but will it be enough to overcome decades of economic barriers?
In a significant diplomatic development, Bangladesh High Commissioner to Pakistan, Md. Iqbal Hussain Khan, met with Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial in Islamabad on Monday. The meeting wasn’t just a formality—it was a strategic push to strengthen bilateral trade, tax cooperation, and overall economic ties between the two countries. But here’s where it gets intriguing: while both nations share a history of brotherly relations, their economic collaboration has often lagged behind. This meeting aims to change that.
During the discussions, both sides reaffirmed their long-standing ties and committed to bolstering mutual economic cooperation. A key highlight was the agreement to revisit the existing Double Taxation Treaty, aligning it with modern global standards. And this is the part most people miss: as global trade evolves, outdated tax agreements can stifle economic growth. By modernizing this treaty, both countries hope to create a more conducive environment for cross-border investments and trade.
To put this into action, a high-level delegation from Bangladesh’s National Board of Revenue (NBR) is currently in Pakistan for a five-day official visit, from December 22 to 26. Their mission? To negotiate a Protocol that amends the existing Convention for the Avoidance of Double Taxation and Prevention of Fiscal Evasion. Led by Muhammad Lutful Azeem, Member (International Taxes), the delegation includes experts like G.M. Abdul Kalam Kaikobad (Tax Administration) and Barrister Mutasim Billah Faruqui (Tax Policy). But here’s the controversial part: while both sides agree on the need for cooperation, the devil is in the details. How will they balance their respective fiscal interests while ensuring mutual benefit? This question remains a hot topic for debate.
On the first day of their visit, the delegation was warmly received by Iqbal Khan, Member (Administration), and Aftab Alam, Director General (International Taxes) of the FBR. The discussions focused on international taxation, with both sides sharing insights and agreeing to expand institutional collaboration through regular engagements. Here’s a thought-provoking question for you: In an era of global economic uncertainty, can such bilateral efforts truly unlock new opportunities, or are they just symbolic gestures? Share your thoughts in the comments below—we’d love to hear your perspective!
