Pakistan and Afghanistan have inked a preferential trade agreement to "significantly" reduce tariffs on their respective export items, Kabul's Embassy in Islamabad announced on X.
The agreement was formally signed on Wednesday between the Afghan Industry and Commerce Ministry, represented by interim deputy minister, Mullah Ahmadullah Zahid and the Pakistani Commerce Ministry, represented by deputy minister, Jawad Paul.
Under the deal, the tariff rates on four Afghan export items to Pakistan- grape, pomegranate, apple and tomato.
As well as on four Pakistani export items to Afghanistan- mango, kinnow, banana, and potato, which previously exceeded 60 percent, will be reduced to 27 percent.
The agreement will take effect on August 1 for one year, is renewable, and allows for the inclusion of additional items in the future.
Following frequent ups and downs, bilateral trade volume between Afghanistan and Pakistan rose up by 25 percent in the fiscal year 2024–25, reaching $1.9 billion, up from $1.6 billion recorded in the previous fiscal.
In a related development, Afghanistan's interim Foreign Minister Amir Khan Muttaqi is expected to visit Pakistan in the first week of August, local broadcaster 24 News reported, citing diplomatic sources.
There was no official announcement yet about the visit from either side. This will be Muttaqi’s first official trip to Pakistan since November 2021.
