ISLAMABAD: In a major move toward normalising ties, Pakistan and Afghanistan have signed a Preferential Trade Agreement (PTA) to reduce tariffs on eight agricultural products.
The agreement, signed by senior commerce officials from both countries, will reduce the customs duties on four Afghan exports to Pakistan — grapes, pomegranates, apples and tomatoes — and four Pakistani exports to Afghanistan — mangoes, kinnows, bananas and potatoes.
Tariff rates on these items, which previously exceeded 60% will now be capped at 27%.
“This agreement will be effective for a period of one year, commencing on August 1, 2025,” the Afghan embassy said on X.
“It is renewable and also allows for the inclusion of additional items in the future.” The deal was signed by Afghanistan’s Industry and Commerce Deputy Minister Mullah Ahmadullah Zahid and Pakistan’s Commerce Secretary Minister Jawad Paul.
“A significant step forward in AFG-PAK economic ties. Delighted to witness the signing of the Preferential Trade Agreement between Afghanistan & Pakistan, reducing tariffs on key exports and opening doors for greater bilateral trade. A win for our farmers, traders, and shared prosperity,” Kabul’s Charge d’Affairs in Islamabad Sardar A Shakeeb said in a post on X.
The development comes months after Islamabad upgraded its diplomatic ties with Kabul to ambassadorial status back in May — a move replicated by the neighbouring country.
The two nations share a porous border spanning around 2,500 kilometres with several crossing points, which hold significance as a key element of regional trade and relations between the people across both sides of the fence.
The issue of terrorism remains a key issue for Pakistan, which has urged Afghanistan to prevent its soil from being used by groups such as the TTP to carry out attacks inside the former’s territory.
