Pakistan president eyes strengthening trade, investment, tourism cooperation during Iraq visit

President of Pakistan, Asif Ali Zardari (left) shaking hands with Iraq's Culture Minister Dr. Ahmed Fakkak Al-Badrani in Baghdad, Iraq on December 20, 2025. (Government of Pakistan)
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Updated 21 December 2025
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Pakistan president eyes strengthening trade, investment, tourism cooperation during Iraq visit

  • President Asif Ali Zardari arrived in Baghdad on Saturday for four-day visit aimed to bolster bilateral ties
  • Zardari, Iraqi leaders to discuss ways to strengthen cooperation in energy, manpower, technology and education

ISLAMABAD: President Asif Ali Zardari is in Iraq for a four-day visit where he will review bilateral ties and hold meetings with the country’s leadership to strengthen cooperation in trade, investment, religious tourism and energy as well as other sectors, state-run media said this week. 

Zardari arrived in Baghdad on a four-day trip on Saturday where he was received by the country’s Culture Minister Dr. Ahmed Fakkak Al-Badrani.

Pakistan and Iraq established diplomatic relations in 1947 and have traditionally maintained cordial ties, though commercial links remain modest, with officials and business groups identifying scope for cooperation in construction services, pharmaceuticals, manpower and agricultural exports.

“During the visit, President Asif Ali Zardari will hold high-level meetings with the Iraqi leadership, during which all aspects of bilateral relations will be reviewed,” state broadcaster Pakistan Television reported on Saturday. 

“The meetings will consider ways to further strengthen cooperation in key areas of mutual interest, including trade, investment, energy, reconstruction, manpower, technology, education, and people-to-people contacts.”

It said both sides are also expected to discuss regional and international issues, including cooperation at multilateral forums. 

“The president’s visit is expected to further strengthen friendly relations between Pakistan and Iraq, explore new avenues of partnership, and promote people-to-people ties, particularly religious tourism and economic cooperation,” PTV said. 

Earlier this month, Pakistan’s Interior Minister Mohsin Naqvi met his Iraqi counterpart, Abdul Ameer Al-Shammari, on the sidelines of meetings in Brussels, where both sides agreed to enhance cooperation on security and facilitate travel for Pakistani Shia pilgrims to Najaf and Karbala.

The two officials discussed measures to ensure the smoother movement of these pilgrims and their compliance with visa regulations.


Pakistan business group presses for corporate tax rationalization in IMF talks

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Pakistan business group presses for corporate tax rationalization in IMF talks

  • Pakistan Business Council calls for abolition of super tax, phased corporate rate cut to 25%
  • PM Sharif has said government is considering reduction in direct taxes in upcoming budget

KARACHI: Pakistan’s business policy advocacy group urged the government to rationalize corporate tax rates during talks with an International Monetary Fund (IMF) delegation on Saturday, arguing such a step would be critical to shifting the economy from stabilization to export-led growth.

The Pakistan Business Council (PBC), which represents many of the country’s largest private-sector companies, said the current tax structure places a disproportionate burden on documented and compliant enterprises.

The engagement follows the arrival of an IMF staff mission in Pakistan earlier this week to begin review talks that will determine the release of the next tranche under the country’s $7 billion Extended Fund Facility (EFF) and the $1.4 billion Resilience and Sustainability Facility (RSF).

The team is expected to start formal negotiations next week, discussions seen as critical to sustaining Pakistan’s fragile economic recovery and maintaining external financing stability.

“Stabilization has provided breathing space,” PBC Chairperson Dr. Zeelaf Munir said according to a statement after the meeting with the IMF delegation headed by mission chief Iva Petrova. “The priority now is institutionalizing growth.”

“A competitive and equitable tax framework, predictable energy pricing and policy consistency are essential to expand exports, attract investment and generate employment at scale,” she continued. “The private sector stands ready to deploy capital where reform signals remain clear and credible.”

In its presentation to the Fund team, the PBC called for the abolition of the super tax, an additional levy imposed in recent years on high-earning companies and individuals to shore up revenues, in all its forms. It also demanded a phased reduction of the corporate tax rate to 25%, and rationalization of advance and withholding tax regimes that businesses say function as de facto minimum taxes.

The PBC urged the broadening of the tax base through stronger enforcement to bring untaxed sectors into the net, rather than increasing the burden on existing taxpayers.

Prime Minister Shehbaz Sharif said earlier this week on Wednesday the government was considering reducing direct taxes in the upcoming federal budget to support businesses, while maintaining that indirect taxes collected from consumers must be properly deposited into the national exchequer.

The IMF review discussions with the Pakistani authorities are expected to focus on fiscal consolidation, monetary policy, structural reforms and climate-related benchmarks tied to the RSF program, as Islamabad seeks to secure continued external financing and strengthen macroeconomic stability.