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Express Tribune
6 days ago
- Business
- Express Tribune
Pakistan, Afghanistan strike trade deal
Listen to article Pakistan and Afghanistan on Wednesday inked a preferential trade agreement (PTA), aimed at reducing tariffs on different products. At present, tariffs on agreed products stand at 60%, but both sides will slash levies up to 22% under the new agreement. It is termed a historic achievement by Afghanistan and Pakistan. The two governments have been locked in a row over the role of Tehreek-e-Taliban Pakistan (TTP) as Islamabad alleges that Kabul refrains from taking action against the TTP, which has roots in Afghanistan. Despite tensions, Islamabad and Kabul reached a trade deal after two days of talks in the Pakistani capital. Afghanistan's Deputy Minister of Industry and Commerce Mullah Ahmadullah Zahid and Pakistan's Commerce Secretary Javed Paul signed the agreement. They have reached an understanding to cut tariffs in a bid to enhance bilateral trade. According to the agreement, Pakistan will reduce tariffs on four food items – grapes, pomegranates, apples and tomatoes. Similarly, Afghanistan has agreed to slash tariffs on four commodities including mangoes, oranges, bananas and potatoes. Previously, the tariffs on these food items had been more than 60%. This one-year agreement will come into force on August 1, 2025, under which they will reduce tariffs on additional commodities as well. According to the signed pact, Afghanistan's Ministry of Industry and Commerce and Pakistan's Ministry of Commerce have agreed to implement an Early Harvest Programme to boost trade flows and economic cooperation between the two countries. They have reached an understanding to provide preferential tariff concessions on a selected list of agricultural goods under the Early Harvest Programme. Concessions will be provided by reducing tariffs and duties on products originating in respective territories and destined for the other. Afghanistan will export tomatoes, grapes, apples and pomegranates while Pakistan will ship potatoes, kinnows, bananas and mangoes. The PTA rate, which includes customs duty and other levies, on Afghan tomatoes will be 22% with volume at 400,000 tons. Meanwhile, the levies on grapes, with a volume of 230,000 tons, apples (100,000 tons) and pomegranates (100,000 tons) will be 27%. For Pakistani goods, the PTA duties on potatoes have been reduced up to 22% for 400,000 tons. Moreover, the duties have been slashed to 27% on kinnows (100,000 tons), bananas (230,000 tons) and mangoes (100,000 tons). The Trade Development Authority of Pakistan will issue the Certificate of Origin whereas from the Afghan side, the Certificate of Origin will be released by the Ministry of Industry and Commerce. Islamabad and Kabul will implement the Early Harvest Programme beginning August 1, 2025. Tariff concessions will be granted for one year from August 1, 2025 to July 31, 2026. The period may be extended upon mutual agreement. All concessions are based on reciprocity and parity. The two countries will also constitute a PTA implementation committee to oversee the Early Harvest Programme. It will include representatives from the Customs and agricultural ministries of both countries. The committee will meet every month and will monitor, evaluate and recommend improvements in the programme.
Business Recorder
6 days ago
- Business
- Business Recorder
Pakistan, Afghanistan sign long-awaited PTA
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
Arab News
6 days ago
- Business
- Arab News
Afghanistan and Pakistan sign preferential trade deal to slash tariffs on key fruits, vegetables
ISLAMABAD: Afghanistan and Pakistan have signed a Preferential Trade Agreement (PTA) to reduce tariffs on eight agricultural products, the Afghan embassy in Islamabad announced on Wednesday, in a rare move of economic cooperation between the two neighbors with often-tense ties. The agreement, signed by senior commerce officials from both countries, will reduce customs duties on four Afghan exports to Pakistan — grapes, pomegranates, apples, and tomatoes — and four Pakistani exports to Afghanistan — mangoes, kinnows, bananas, and potatoes. Tariff rates on these items, which previously exceeded 60%, will now be capped at 27%. 'This agreement will be effective for a period of one year, commencing on August 1, 2025,' the Afghan embassy said on X. 'It is renewable and also allows for the inclusion of additional items in the future.' The deal was signed by Mullah Ahmadullah Zahid, Deputy Minister at Afghanistan's Ministry of Industry and Commerce, and Jawad Paul, Pakistan's Deputy Commerce Minister. The agreement comes at a time of strained political and security relations between Kabul and Islamabad, marked by border closures, mutual accusations over cross-border militant activity, and reduced formal trade volumes since the Taliban returned to power in 2021. Still, both countries remain heavily reliant on overland trade routes, and fruit exports have long played a vital role in seasonal cross-border commerce. In the first half of 2025, Pakistan and Afghanistan's bilateral trade reached nearly $1 billion, with Afghan exports to Pakistan totaling $277 million and Pakistan's exports to Afghanistan reaching $712 million. This growth is partly attributed to increased Pakistani exports, including medical supplies, parboiled rice, and sugar. However, trade volume is still below potential, with estimates suggesting it could reach $8 to $10 billion annually if obstacles are overcome. Obstacles to trade between Pakistan and Afghanistan include border closures, security concerns, and issues with trade facilitation. Specifically, frequent closures of border crossing points like Torkham and Spin Boldak, triggered by political tensions or security incidents, disrupt trade flows and cause financial losses for businesses. Additionally, challenges related to trade facilitation, customs procedures, and transit infrastructure further hinder the smooth movement of goods.
