Pakistan Afghanistan Cut Tariffs Under New Trade Deal
Pakistan, Afghanistan Sign Preferential Trade Agreement to Slash Tariffs
Pakistan and Afghanistan have signed a landmark Preferential Trade Agreement (PTA) aimed at boosting bilateral trade by significantly reducing tariffs on select agricultural products.
The agreement was formally signed on Wednesday in Islamabad by Pakistan’s Commerce Secretary Jawad Paul and Afghan Deputy Minister for Commerce and Industry Mulla Ahmadullah Zahid during an official ceremony.
According to Pakistan’s Ministry of Commerce, the PTA will lower tariff rates from 60% to 27% on specific goods traded between the two neighboring countries. The agreement is set to take effect from August 1, 2025, pending final approval from Pakistan’s federal cabinet. It will initially remain valid for one year and can be extended with mutual consent.
Under the terms of the deal, Afghanistan will cut import duties on mangoes, kinnows, bananas, and potatoes from Pakistan, while Pakistan will reduce tariffs on grapes, pomegranates, apples, and tomatoes imported from Afghanistan.
In addition to the PTA, both countries have agreed to form a technical committee to work on a broader Transit Trade Agreement, signaling a step forward in enhancing regional economic cooperation.
Officials believe this agreement will not only ease market access but also help stabilize prices and support farmers and exporters in both countries.
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