ISLAMABAD: Pakistan and Afghanistan are all set to sign the long-awaited Preferential Trade Agreement (PTA) to be operational from August 1, 2025 which will include bilateral duty-free export and import of some fruits and dry fruits, well informed sources in Commerce Ministry told Business Recorder.
Both countries are holding talks in Islamabad to finalise the pact which remained inconclusive due to influence of Indian Consultants during the regimes of former President Hamid Karzai and Ashraf Ghani. The key demand of the previous Afghan government was to allow import of Indian goods via Pakistan to Afghanistan which was never accepted by Islamabad.
Afghan Deputy Minister for Commerce and Industry Ahmadullah Zahid, along with senior technical experts, arrived in Pakistan Monday night for talks with officials of Ministry of Commerce on bilateral Preferential Trade Agreement (PTA).
Afghan Deputy Minister arrives
According to proposed draft PTA, recognising the importance of facilitating bilateral trade between the Islamic Emirate of Afghanistan and the Islamic Republic of Pakistan, the Ministry of Industry and Commerce, Afghanistan (MoIC) and the Ministry of Commerce, Pakistan (MoC) agree to implement an Early Harvest Programme (EHP) to enhance trade flows and economic cooperation between the two countries.
Article 1: Preferential Tariff Treatment: (i) the Contracting Parties — the Islamic Emirate of Afghanistan (“Afghanistan”) and the Government of Pakistan (“Pakistan”), hereinafter collectively referred to as the “Contracting Parties” and individually as a “Contracting Party” — agree to provide Preferential Tariff Concessions on a selected list of agricultural goods under the Early Harvest Program; and (ii) the concessions shall be implemented by reducing tariffs and duties on the following products originating in the respective territories and destined for the other: Afghanistan exports: tomatoes, grapes, apples, and pomegranates while Pakistan will export potatoes, kinnows, bananas and mangoes
Article 2: Development of Preferential Trade Agreement (PTA): The Contracting Parties agree to initiate negotiations for a comprehensive Preferential Trade Agreement (PTA) based on the performance of the Early Harvest Program and mutual satisfaction of both sides.
Article 3: Rules of Origin: The agricultural products listed above must be: (i) harvested, picked, or gathered in the exporting country; (ii) wholly obtained, and (iii) accompanied by a Certificate of Origin issued by the designated authority of each country to qualify for preferential treatment.
Article 4: Certification; (i) for Pakistan, the Certificate of Origin shall be issued by the Trade Development Authority of Pakistan (TDAP); and (ii) for Afghanistan, the Certificate of Origin shall be issued by the Ministry of Industry and Commerce (MoIC).
Article 5: Implementation Date: The Early Harvest Program shall be implemented starting 1st August 2025.
Article 6: Duration and Reciprocity: (i) the tariff concessions shall be granted for a period of one year, from 1st August 2025 to 31st July 2026 ;(ii) the program may be extended upon mutual agreement; and (iii) all concessions are to be based on reciprocity and parity.
Article 7: PTA Implementation Committee: a PTA Implementation Committee shall be formed to oversee the Early Harvest Program. It shall: (i) be led by MoIC (Afghanistan) and MoC (Pakistan); (ii) include representatives from Customs and Agriculture Ministries of both countries ;(iii) meet on a monthly basis, and ;(iv) be responsible for monitoring, evaluation, and recommending improvements to the programme.
“It is G2G arrangement between Pakistan and Afghanistan, hence private sector has not been involved in these talks,” said Junaid Makda and Zia ul Haq Sarhadi while talking to Business Recorder.
According to sources, the draft agreement has already been cleared at the level of SIFC. In this regard a high-level meeting was held in PMO to finalise the draft of the pact.
Copyright Business Recorder, 2025
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