ISLAMABAD, March 20: Pakistan is likely to sign a comprehensive treaty with Yugoslavia on the avoidance of double taxation between the two countries.

Belgrade has formally requested Islamabad to initiate negotiations on the proposed treaty, diplomatic sources told Dawn on Wednesday.

On the proposed draft treaty sent to Pakistan in 1982, the Government of Yugoslavia has sought the comments of Pakistan before formally starting further negotiation on it, the sources said.

According to the sources, Islamabad would now decide either to proceed negotiation on the old draft or opt for a fresh one. A senior official in the Finance Ministry told Dawn that the two countries for signing a comprehensive treaty had already held two rounds of talks in 1961 to 1964.