ISLAMABAD, April 29: Pakistan and Saudi Arabia on Thursday signed a draft agreement for the avoidance of double taxation in respect of income between the two countries.

Central Board of Revenue (CBR) official spokesman, Vakil Ahmed Khan told reporters that the draft agreement was exchanged by the heads of both the delegation in the concluding ceremony following the consensus achieved on the remaining articles during the last three days.

He said that the tax authorities of both countries had already developed consensus on most of the articles during the first round of negotiations held in Riyadh in 2003. It was hoped that the agreement would be signed and ratified by the respective governments soon, he added.

The Saudi delegation was led by director general of the international economic relation department of finance, Fahad Bin Abdul Rahman Al-Rajesh. And member direct taxes, Vakil Ahmed Khan headed Pakistani side.

Mr Khan said the agreement for the avoidance of double taxation would further strengthen our trade and economic relations and facilitate business community of both the countries to come closer to boost investment and provide employment opportunities.

According to the spokesman, Pakistan has significant trade with Saudi Arabia but there still existed considerable potential for its expansion and reciprocal investments. Both the countries having close, brotherly relationship have been working together for intimate cooperation in economic, political and social fields since the inception of Pakistan, added the spokesman.