Pakistan, Afghanistan sign long-awaited PTA
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
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
3 hours ago
- Express Tribune
India's rhetoric fueling instability: FO
Listen to article Pakistan on Friday categorically rejected what it called "baseless and irresponsible statements" made by Indian political leaders in the Lok Sabha regarding the so-called "Operation Sindoor", reiterating that such rhetoric only fuels instability in South Asia. Foreign Office spokesperson, Ambassador Shafqat Ali Khan, addressing his weekly press briefing, said, "The world knows that India carried out attacks on Pakistani territory without a shred of credible evidence. The so-called strikes on alleged terrorist sites led to the martyrdom of innocent civilians. India failed to avail itself of Pakistan's immediate offer for a joint probe into the Pahalgam incident, which speaks volumes about the falsity of their claims." He underscored that Pakistan's defense capabilities remain a strong deterrent against any adventurism by India. "For us, the only path to normalcy lies in mutual respect for sovereignty, territorial integrity, and adherence to international laws and UN charters. India's continued reliance on jingoism, chest-thumping, and empty rhetoric is jeopardizing regional peace and stability." The spokesperson also dismissed recent remarks by the Indian Home Minister on the Indus Waters Treaty, saying such "displaced assertions carry no legal weight and cannot alter established international agreements." Reaffirming Pakistan's position on terrorism, Ambassador Khan stated: "Groups like BLA and TTP are recognised as terrorist organizations. Evidence shows they are being funded and facilitated from across the border. We have consistently raised this matter with Afghan authorities and expect decisive action." On relations with India, he said Pakistan remained open to dialogue based on mutual respect and international law but would continue to vigorously defend its sovereignty against any false narratives or hostile actions.
Business Recorder
5 hours ago
- Business Recorder
Quetta chamber highlights obstacles to trade with Iran, Afghanistan
ISLAMABAD: Despite importing hundreds of items from Iran, Pakistan exports only 10 items to the neighbouring country, exposing a stark imbalance in bilateral trade that has drawn concern from the Quetta Chamber of Commerce. The Chamber representatives, on Thursday, informed the Senate Standing Committee on Finance at length about the major challenges being faced by local businessmen in carrying out trade activities through the Pakistan-Iran and the Pakistan-Afghanistan border areas. It is learnt that the issues were raised by the Quetta Chamber of Commerce and Industry during a joint session of the Senate Standing Committees on Finance and Trade with the office-bearers and members of the Chamber. Businessmen voice concerns over trade challenges at Iran, Afghanistan borders On the occasion, the President of the Chamber, Muhammad Ayub Mariani, Senior Vice President Haji Akhtar Kakar, Vice President Engineer Mir Wais Khan, and others stated that not only have they conveyed the obstacles in bilateral trade with Iran and Afghanistan to the higher authorities, but they have also held dialogues with Afghan and Iranian officials in this regard. President of the Chamber Mariani, Senior Vice President Kakar, and Vice President Mir Wais Khan informed the participants that due to the requirement of the EIF form, bilateral trade has come to a halt, and Pakistani cargo trucks are being held in Iran unnecessarily for 15 to 20 days. They also mentioned that Pakistan exports only 10 items to Iran, while hundreds of items are imported from Iran. Complaints were also made about the increase in attestation and visa fees. They also discussed the Joint Economic Forum and Joint Border Trade Committee with Iran, lamenting that unfortunately, the recommendations of the Economic Forum and Joint Border Committee have not been implemented by either country. They demanded the inclusion of officials from the federal ministries of Commerce and Finance, as well as the prime minister's representatives, in the merging of the Economic Forum and Joint Border Trade Committee, so that matters can reach a logical conclusion. They expressed reservations about the reopening and then closure of the Badini border, the reopening of Qamaruddin Karez border, inactivity of border markets, and other issues, and presented suggestions. They stated that if cold storage and LPG terminals and other issues at Chaman and Taftan borders are resolved, trade volume with neighboring countries can be significantly increased. On this occasion, Chairman Saleem Mandviwalla said that for the past six months, they had been receiving complaints in Islamabad regarding Pakistan-Iran and Pakistan-Afghanistan bilateral trade issues. Therefore, they decided to come here and listen to the stakeholders. The provincial government was also taken into confidence in this regard. Some issues will be resolved here on the spot, while others will be conveyed to higher authorities. We want to address the complaints and concerns we have heard. We have come to end the sense of deprivation and backwardness in Balochistan. If we cannot solve these problems collectively, it would be a failure of the federation. He said that they have discussed border issues here and will visit Chaman and Taftan next time to assess the situation. He mentioned that the Iranian Consul General gave them a list of issues, and Balochistan's business community also shared their problems. These will be presented to the Iranian president and the high-level delegation accompanying him. He clarified that borders are not closed — only smuggling has been curbed. If full freedom is given, then sugar and other goods will become more expensive. He added that Iranian petrol is entering under a token system, but not through tankers. In response to a question, he stated that global economic sanctions on Iran are the main obstacle to the pipeline project. Whenever steps are taken in this regard, Pakistan also receives threats of sanctions. However, this project should be completed as it has no military or war-related objectives—it is purely for the welfare of the general public. Talks on this matter are still ongoing. Our job is not to restrict trade but to facilitate it. Chairperson of the Senate Standing Committee on Commerce, Anusha Rahman, has said that barter and border trade with the neighbouring brotherly Islamic country Iran should be conducted on a free and equal basis. After consultation with stakeholders regarding the obstacles and difficulties in bilateral trade, the recommendations have been finalised. She stated that they want a separate SRO for barter trade with Iran so that hurdles in trade with Iran can be eliminated. She directed the chairman of TDAP to ensure support for the Chamber of Commerce and Industry members and officials regarding online trade. She reiterated that border and barter trade with Iran and Pakistan should be on an equal basis. She directed TDAP officials to allocate funds for cold storage, LPG terminals, and other facilities at the borders. She also stated that the opening of the Chaman border is scheduled for September, and they will definitely participate in it. The Consul General of Iran in Quetta, Ali Reza Razaei, said that Iran is always ready to hold discussions to resolve the difficulties faced in bilateral trade relations with Pakistan. He stated that Iran wants to trade with Pakistan through land, sea, and air routes, and the lack of cooperation in this regard is disappointing. 'We are not here to compete with each other, but to highlight bilateral trade issues,' he said. 'The doors of the Iranian Consulate are always open for traders.' The session was also attended by Senator Manzoor Khan Kakar, Senator Bilal Khan Mandokhail, Senator Jan Muhammad Buledi, Iran's Consul General Ali Reza Rezaei, Additional Secretary Commerce, Chairman TDAP, Chief Collector Customs, and other officials. Copyright Business Recorder, 2025
Business Recorder
5 hours ago
- Business Recorder
Pakistan issues fresh call for Afghans to leave
QUETTA: Pakistan issued a new call on Friday for Afghans living in the southwest to leave the country, triggering thousands to rush to the border, officials said. Millions of Afghans have poured into Pakistan over the past several decades, fleeing successive wars, as well as hundreds of thousands who arrived after the return of the Taliban government in 2021 . A deportation drive first launched in 2023 was renewed in April when Pakistan's government rescinded hundreds of thousands of residence permits for Afghans, threatening to arrest anyone who did not leave. 'We have received directives from the home department to launch a fresh drive to repatriate all Afghans... in a respectful and orderly manner,' Mehar Ullah, a senior government official in Quetta, the capital of Balochistan province, told AFP. The province borders Afghanistan and there are significant ties between the regions. On Friday, there were 'around 4,000 to 5,000 people at the Chaman border' waiting to return, said Habib Bingalzai, a senior government official in Chaman. Abdul Latif Hakimi, the head of Refugee Registration in Afghanistan's Kandahar province across the border, said they were aware of an increase in returning Afghans on Friday. Islamabad has labelled Afghans 'terrorists and criminals', but analysts say the expulsions are designed to pressure neighbouring Afghanistan's Taliban authorities to control militancy in the border regions. In total, more than one million Afghans have left Pakistan since 2023, including more than 200,000 since April. The campaign launched in April targeted the more than 800,000 Afghans with temporary residence permits, some of whom were born in the country or have lived there for decades. Some Pakistanis have grown weary of hosting a large Afghan population as security and economic woes deepen, and the deportation drive has widespread support.
