ISLAMABAD, Dec 20: The Islamic Republic of Iran is likely to consider for implementation the much awaited convention for avoidance of double taxation and prevention of fiscal evasion in respect of taxes on income between Pakistan and Iran.

A senior official source told Dawn on Friday that the decision was expected to be taken in the forthcoming visit of Iranian president, Mohammad Khatami to Islamabad.

Pakistan and Iran had signed the agreement for avoidance of double taxation on May 27, 1999, said the official and added the said agreement has not been enforced as the formalities of exchanging of instruments of ratification by both the states was pending.

Islamabad has already sent the original instrument of ratification to ministry of foreign affairs with the request to exchange the same with Iranian authorities but no response has been received as yet, said the official.

Elaborating further, the official said that Islamabad has completed all the constitutional formalities for bringing into force the agreement for avoidance of double taxation with Iran.

The official said that Pakistan is awaiting intimation from the Iranian authorities about the completion of their legal formalities.

On receiving the intimation from Iranian government, the official said that the same would be notified in official gazette of Pakistan.

With coming into effect, the treaty would result into enhancement of bilateral trade between the two brotherly countries, said the official.

Official figures made available to Dawn showed that the trade deficit between Pakistan and Iran declined by 63 per cent to $129.031 million during the financial year 2001-02 against $350.581 million over the same period of last year.

Further break up showed that Islamabad exports to Tehran stood at $29.188 million during the financial year 2001-02 against $23.867 million over the corresponding year, showing an increase of 22.29 per cent.

But Tehran exports to Islamabad declined by 57.8 per cent to $158.219 million during the financial year 2001-02 against $374.448 million over the corresponding year.

According to the official source during the visit of Iranian president, Mohammad Khatami the other issues regarding customs procedures, cross boarder smuggling particularly of petrol would come for discussion.

Pakistan would also seek more market access for its products both traditional and non-traditional particularly for the textile products and exchange of expertise in the industrial and IT sectors.