Pakistan and Afghanistan have taken a major step toward economic cooperation by signing a Preferential Trade Agreement (PTA) that reduces tariffs on eight key agricultural products. The deal, signed by senior commerce officials from both nations, will lower customs duties on four Afghan exports—grapes, pomegranates, apples, and tomatoes—and four Pakistani exports—mangoes, kinnows, bananas, and potatoes. Previously exceeding 60%, tariffs on these items will now be capped at 27%, fostering smoother trade relations.
The PTA will come into effect on August 1, 2025, and is renewable after one year. The Afghan embassy stated that the agreement also allows for the inclusion of additional trade items in the future. Afghanistan’s Deputy Minister of Industry and Commerce, Mullah Ahmadullah Zahid, and Pakistan’s Commerce Secretary, Jawad Paul, formalized the deal. Kabul’s Charge d’Affaires in Islamabad, Sardar A. Shakeeb, hailed the agreement as a “win for farmers, traders, and shared prosperity.”
The trade agreement follows Pakistan’s decision in May to restore full ambassadorial ties with Afghanistan. The two nations share a 2,500-kilometer porous border, a critical route for regional trade and cross-border movement. However, Pakistan continues to urge Afghanistan to prevent its territory from being used by militant groups like the Tehreek-e-Taliban Pakistan (TTP). Last week, Interior Minister Mohsin Naqvi visited Kabul, discussing counterterrorism, border management, and the repatriation of undocumented Afghans.
During his meetings with Afghan officials, including Interior Minister Sirajuddin Haqqani, Naqvi emphasized the need for joint efforts against terrorism and drug trafficking. He reiterated Pakistan’s long-standing support for Afghan refugees while stressing the importance of regulated cross-border movement. The PTA marks progress in economic relations, but security cooperation remains vital for lasting stability between the two neighbors.