[Ask the Tax Whiz] Clarifying some tax issues related to ONETT transactions

A decision has been taken to reopen all border crossings and transit routes between Pakistan and Afghanistan, following a meeting chaired by Federal Interior Minister Mohsin Naqvi with senior officials and representatives of the business community. The meeting discussed measures to remove obstacles affecting bilateral trade and facilitate the movement of goods between the two countries. Participants also stressed the need to restore normal economic ties and improve trade relations between Pakistan and Afghanistan. The meeting further focused on making legal travel between the two countries easier and more convenient for their citizens. Officials and business representatives agreed that reopening the routes would help address difficulties faced by traders and support economic activity on both sides of the border. The government also emphasised the importance of reducing unnecessary hurdles in trade and movement while ensuring that legal procedures remain in place.

Finance Minister Muhammad Aurangzeb held a series of high-level meetings with senior officials of the International Monetary Fund (IMF) in Washington to review Pakistan’s economic performance and discuss the progress of the country’s reform agenda. The meetings included discussions with IMF First Deputy Managing Director Dan Katz, Deputy Managing Director Nigel Clarke, Middle East and Central Asia Department Director Jihad Azour, and IMF Mission Chief for Pakistan Iva Petrova. During the talks, the finance minister presented an overview of Pakistan’s recent macroeconomic performance. He highlighted improvements in fiscal management, stronger external accounts, higher foreign exchange reserves, record inflows of overseas workers’ remittances, and a healthier current account position. He also noted that the government had met its revenue collection targets, which he said reflected the positive impact of ongoing economic reforms. The discussions also focused on Pakistan’s progress under the IMF-supported Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF). Both sides reviewed measures aimed at strengthening economic stability and ensuring long-term, sustainable growth. Aurangzeb briefed IMF officials on reforms in taxation, the energy sector, public debt management, tariff rationalisation, and the government’s privatisation programme. He also discussed efforts to broaden financing sources, improve the investment climate, and restore Pakistan’s access to international capital markets. The meetings further covered issues related to human capital development, increasing women’s participation in the economy, addressing demographic challenges, encouraging technology-led growth, and promoting private sector investment and export-driven development. The finance minister reaffirmed the government’s commitment to maintaining fiscal discipline and implementing structural reforms. He said Pakistan would continue pursuing policies aimed at strengthening economic stability, improving investor confidence, and achieving long-term economic transformation. During his visit to Washington, Aurangzeb also met John Jovanovic, President and Chairman of the Export-Import Bank of the United States, to discuss expanding economic cooperation between the two countries. The meeting focused on financing long-term development projects and increasing bilateral trade in agricultural commodities, including cotton and soybeans, as well as cooperation in the hydrocarbons sector. The two sides also explored opportunities to facilitate greater access to US financing, technology, equipment, and services for priority projects in Pakistan. Officials agreed to identify short-term investment opportunities, appoint focal persons from both sides, and prepare a strategic cooperation framework. The proposed framework is expected to be finalised and signed on the sidelines of the United Nations General Assembly session in September 2026.

Deputy Prime Minister and Foreign Minister Ishaq Dar visited the headquarters of the Asian Development Bank (ADB) in Manila on Wednesday to review the bank’s partnership with Pakistan and discuss ways to strengthen future cooperation. The visit took place on the sidelines of the 33rd ASEAN Regional Forum Ministerial Meeting, where Pakistan is participating in a series of high-level diplomatic engagements with regional and international partners. Upon his arrival at the ADB headquarters, Dar was welcomed by senior officials of the bank. He signed the visitors’ book before holding discussions on the institution’s evolving development agenda and its ongoing collaboration with Pakistan. The meeting focused on expanding cooperation in several important sectors, including infrastructure, energy, climate resilience, education, economic reforms and sustainable development. Both sides also discussed future opportunities to support Pakistan’s economic growth and development priorities. Dar later attended a working luncheon hosted by Pakistan’s Executive Director to the ADB, Nashita Mohsin. The event was attended by Pakistani professionals serving in senior leadership positions across different departments of the bank. During the interaction, Dar appreciated the contributions of Pakistani professionals working at the ADB. He said their expertise and leadership have strengthened the institution’s work while enhancing Pakistan’s image at the international level. He also congratulated Nashita Mohsin on assuming her responsibilities as Pakistan’s Executive Director to the Asian Development Bank and expressed confidence that she would further strengthen Pakistan’s engagement with the institution. On the sidelines of the ASEAN forum, Dar also met Bangladesh’s Foreign Minister Khalilur Rehman. The two leaders reviewed the positive momentum in bilateral relations and discussed ways to expand cooperation between the two countries. Both sides welcomed the steady improvement in diplomatic ties and appreciated the growing engagement in trade, communication and people-to-people contacts. They noted that the launch of direct flights earlier this year has further improved connectivity and created new opportunities for cooperation. The two ministers reaffirmed their commitment to maintaining the positive momentum in bilateral relations and agreed to continue close engagement in areas of mutual interest. Dar and Rehman also exchanged views on regional and international developments, including issues affecting South Asia and broader global challenges. They emphasized the importance of dialogue and cooperation in promoting regional peace, stability and economic development. Earlier, Dar arrived in Manila with a Pakistani delegation to participate in the 33rd ASEAN Regional Forum Ministerial Meeting. During the visit, he is expected to attend the forum’s plenary session and hold several bilateral meetings with foreign ministers from participating countries. The ASEAN Regional Forum brings together foreign ministers and senior diplomats from ASEAN member states and major global powers to discuss regional security, economic cooperation, energy security, food security, geopolitical developments and other international issues. Representatives from the United States, China, Japan, India, Australia, South Korea, Russia, the United Kingdom and the European Union are also participating in the meeting.