Afghanistan and Pakistan have signed a preferential trade agreement aimed at reducing tariffs on selected export items, in a move to boost bilateral trade and economic cooperation, according to TRT Global, citing the Afghan Embassy in Islamabad.
The agreement was signed between Mullah Ahmadullah Zahid, interim deputy minister of Industry and Commerce of Afghanistan, and Jawad Paul, Pakistan’s deputy commerce minister.
Under the deal, both countries will reduce tariff rates on eight key agricultural products. Afghanistan’s exports of grapes, pomegranates, apples, and tomatoes to Pakistan will benefit from lower tariffs, while Pakistan will receive reduced duties on its exports of mangoes, kinnows, bananas, and potatoes to Afghanistan. Tariffs, which previously exceeded 60 percent, will now be brought down to 27%.
The agreement will take effect on August 1, 2025, for an initial period of one year and may be extended or expanded to include more goods in the future.
The development comes as bilateral trade between the two neighbors saw a 25% increase in the fiscal year 2024–25, reaching $1.9bn, up from $1.6bn in the previous fiscal year.
Afghanistan’s interim Foreign Minister Amir Khan Muttaqi is expected to visit Pakistan in early August, according to local media reports citing diplomatic sources. If confirmed, it would mark his first official trip to Pakistan since November 2021.
Officials from both sides have yet to issue formal statements regarding the visit.
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