ISLAMABAD (Kashmir English): Pakistan and Afghanistan have signed a Preferential Trade Agreement (PTA) to reduce tariffs on major agricultural products, marking a significant step forward in boosting trade ties between the two neighboring countries.
Afghan Deputy Minister for Commerce and Industry Mulla Ahmadullah Zahid and Pakistan’s Commerce Secretary Jawad Paul signed the agreement at a ceremony in Islamabad on Wednesday.
PTA used to be a trade deal between two or more countries where they agree to reduce or eliminate tariffs and other trade barriers on certain goods and services traded between them.
Both countries have agreed to reduce tariff rates to 27% from 60 percent.
The agreement will officially come into effect from August 1, 2025, and is valid for one year, with the option to extend based on mutual agreement. Under the new arrangement, both countries will lower tariffs on selected fruits and vegetables that are regularly traded across the border.
Under the agreement, Afghanistan will reduce tariffs on mangoes, kinnows, bananas and potatoes coming from Pakistan and Pakistan will reduce duties on grapes, pomegranates, apples and tomatoes from Afghanistan.
The sides have also agreed for constitution of a technical committee for a transit trade agreement between Pakistan and Afghanistan.
The move comes at a time when both countries are trying to strengthen regional trade despite past political and border tensions. In the first half of 2025, trade between the two nations reached close to $1 billion, with Pakistan exporting goods worth around $712 million, while Afghan exports totaled $277 million.
The reduction in tariffs is expected to make goods more affordable and encourage larger trade volumes, especially benefiting farmers and exporters on both sides.
