The agreement aims to prevent double taxation on income and capital between the two countries while addressing tax avoidance and evasion issues.

Pakistan’s Foreign Ministry announced, on 24 September 2025, that Pakistan and Lithuania signed an income tax treaty during the 80th session of the UN General Assembly in New York.

The agreement marks a step towards strengthening bilateral economic cooperation. It aims to prevent double taxation on income and capital between the two countries while addressing tax avoidance and evasion issues.

The treaty will enter into force after the exchange of ratification instruments.