Afghanistan Times
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KABUL – Pakistan and Afghanistan have signed a landmark preferential trade agreement aimed at slashing high tariffs and boosting cross-border commerce, both governments confirmed Wednesday. The deal, signed in Islamabad by Afghan Deputy Industry Minister Mullah Ahmadullah Zahid and Pakistan’s Deputy Commerce Minister Jawad Paul, reduces tariffs on eight key agricultural exports from both countries—from over 60% to just 27%.
The agreement covers Afghan exports of grapes, pomegranates, apples, and tomatoes, while Pakistan will benefit from lower tariffs on its exports of mangoes, kinnows, bananas, and potatoes. Scheduled to take effect on August 1 and valid for one year, the deal is renewable and includes a clause allowing for expansion to additional goods.
Bilateral trade between the two neighbors has already seen a 25% increase over the past fiscal year, reaching $1.9 billion, signaling renewed momentum despite years of volatility. Kabul’s embassy in Islamabad hailed the agreement on social media as a “significant step toward regional economic cooperation.”
In a related diplomatic development, Afghanistan’s interim Foreign Minister Mullah Amir Khan Muttaqi is expected to visit Pakistan in early August, according to Pakistani media. If confirmed, it will mark his first official visit since 2021 and could pave the way for deeper economic and political engagement between the two countries.
