ISLAMABAD: Pakistan and Afghanistan on Wednesday signed a long-awaited Preferential Trade Agreement (PTA) following two days of intensive negotiations.
The agreement was signed by Afghanistan’s Deputy Minister of Industry and Commerce, Mullah Ahmadullah Zahid, and Pakistan’s Commerce Secretary, Javed Paul.
Under the PTA, Pakistan will reduce tariffs on four key Afghan agricultural exports — grapes, pomegranates, apples, and tomatoes — while Afghanistan will lower tariffs on four Pakistani products — mangoes, oranges (kinnows), bananas, and potatoes.
Pakistan, Afghanistan all set to sign PTA
Previously, tariffs on these items exceeded 60%, but under the new agreement, they will be reduced to 27%. This one-year agreement, effective from August 1, 2025, is extendable and may include additional items in the future.
According to the signed pact, both countries will implement an Early Harvest Programme (EHP) to boost trade and economic cooperation. The Ministry of Industry and Commerce of Afghanistan (MoIC) and Pakistan’s Ministry of Commerce (MoC) will collaborate to provide preferential tariff concessions on a selected list of agricultural products.
Under the EHP Afghanistan will export tomatoes (400,000 tons) at a 22% duty, grapes (230,000 tons), apples (100,000 tons), and pomegranates (100,000 tons) at a 27% duty.
Pakistan will export potatoes (400,000 tons) at a 22% duty, Kinnows (oranges), bananas (230,000 tons), and mangoes (100,000 tons) at a 27% duty.
For the purpose of verifying the origin of goods, Pakistan’s Trade Development Authority of Pakistan (TDAP) will issue the Certificate of Origin for its exports whereas Afghanistan’s Ministry of Industry and Commerce (MoIC) will do the same for Afghan exports.
The Early Harvest Programme will be in effect from August 1, 2025, to July 31, 2026, and may be extended through mutual agreement. All concessions will be based on reciprocity and parity.
To ensure effective implementation and oversight, a PTA Implementation Committee will be established, jointly led by MoIC (Afghanistan) and MoC (Pakistan). The committee will also include representatives from the customs and agriculture ministries of both countries. It will meet monthly to monitor progress, evaluate outcomes, and recommend improvements.
Copyright Business Recorder, 2025
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