ISLAMABAD, July 24 (Alliance News): Pakistan and Afghanistan have formally signed a Pre-Preferential Trade Agreement (PTA) Framework under an Early Harvest Programme (EHP), marking a milestone step towards trade liberalization and tariff rationalization between the two neighboring countries.
The agreement, focused on eight agricultural items, was inked between Pakistan’s Federal Secretary for Commerce, Jawad Paul, and Afghanistan’s Interim Deputy Minister of Industry and Commerce, Mullah Ahmadullah Zahid.
It will take effect from August 1, 2025, and will remain valid for one year, with the possibility of renewal. The framework also sets the stage for expanding the agreement to additional trade items and advancing toward a full bilateral PTA.
Under the EHP, tariffs on four key Afghan exports to Pakistan—grapes, pomegranates, apples, and tomatoes—will be slashed from over 60 percent to just 27 percent. In return, Pakistan’s exports of mangoes, kinnow (citrus), bananas, and potatoes to Afghanistan will enjoy similar tariff reductions.
The agreement is being hailed as a crucial move to stabilize and expand bilateral trade, which experienced a 25 percent increase in fiscal year 2024-25, rising to $1.9 billion from $1.6 billion the previous year.
President of the Federation of Pakistan Chamber of Commerce and Industry (FPCCI), in a statement to APP, welcomed the agreement and emphasized Afghanistan’s pivotal role in regional economic connectivity.
He noted that a sustained trade agreement between Pakistan and Afghanistan could significantly boost Pakistan’s access to Central Asian Republic (CAR) markets, positioning Afghanistan as a vital conduit for regional integration.
