It is proposed to ratify the Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income

The Seimas, after the submission, started to consider the proposal of the Ministry of Finance to ratify the Convention between Lithuania and Pakistan for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income. The Convention was signed on 23 September 2025 in New York and is a significant part of the consistent development of Lithuania's network of double taxation conventions.

"This Convention will enhance legal certainty for Lithuanian businesses and residents operating in Pakistan and will ensure that the same income is not taxed twice in different countries. Moreover, the Convention will contribute to the international efforts to combat tax avoidance, abuse and profit shifting in implementation of instruments approved by the OECD and G20", Minister of Finance K. Vaitiekūnas says.

Currently, Lithuania has double taxation conventions with 58 countries. The new Convention with Pakistan will facilitate bilateral economic cooperation, investments and trade, while strengthening tax transparency and helping to prevent tax avoidance and tax evasion.

The Convention will come into force only after its ratification by both parties. Its provisions will apply from the calendar year following the Convention coming into force - in Lithuania from 1 January, while in Pakistan from 1 July.