Pakistan, Afghanistan reduces 27% tariffs after signing a preferential commercial agreement


Pakistan’s Deputy Minister of Commerce, Jawad Paul, shakes hand with Mullah Ahmadullah Zahid, Deputy Minister of the Ministry of Industry and Commerce of Afghanistan, after a signature of a preferential commercial agreement in Islamabad on July 23, 2025.
  • Agreement to enter into force on August 1 for one year.
  • It will reduce tariffs over a total of eight agricultural products.
  • Development of Afghan shipping terms “gain for farmers, merchants”.

Islamabad: in an important movement towards the normalization of ties, Pakistan and Afghanistan have signed a preferential commercial agreement (PTA) to reduce tariffs of eight agricultural products, The news reported.

The agreement, signed by senior trade officials of both countries, will reduce customs duties in four Afghan exports to Pakistan (grapes, grenades, apples and tomatoes) and four Pakistani exports to Afghanistan: mangoes, kinnows, bananas and potatoes.

Tariff rates in these elements, which previously exceeded 60%, will now have a 27%limit.

“This agreement will be effective for a period of one year, starting on August 1, 2025,” said the Afghan embassy in X.

“It is renewable and also allows the inclusion of additional articles in the future.” The agreement was signed by the Deputy Minister of Industry and Commerce of Afghanistan, Mullah Ahmadullah Zahid, and the Minister of the Secretary of Commerce of Pakistan, Jawad Paul.

“A significant step ahead in the economic ties of Afg-Pak. Enchanted to witness the signing of the preferential commercial agreement between Afghanistan and Pakistan, reducing tariffs on key exports and opening doors for a greater bilateral trade. A victory for our farmers, merchants and shared prosperity”, Kabul’s affairs accuse the affairs in Islamabad Sardo to Shakeeb, he said in Shakeeb, he said in Shakeeb A post of a position.

Development occurs months after Islamabad improved its diplomatic ties with Kabul to ambassador status in May, a movement replicated by the neighboring country.

The two nations share a porous edge that covers around 2,500 kilometers with several crossing points, which is important as a key element of regional trade and relations between people on both sides of the fence.

The issue of terrorism remains a key issue for Pakistan, which has urged Afghanistan to prevent its soil from being used by groups such as TTP to carry out attacks within the territory of the first.

Last week, Interior Minister Mohsin Naqvi visited Afghanistan and held several high -level meetings with Kabul’s leadership, where both parties agreed to reinforce bilateral cooperation to curb terrorism and administer its more effectively shared border.

He also met with his Afghan counterpart Sirajuddin Haqqani, where the two leaders underlined the importance of peaceful coexistence, regional stability and improved collaboration between both nations.

The discussions focused on bilateral relations, with a particular approach to the counterterrorism, cross-border infiltration and the Tehreek-E-Taliban Pakistan (TTP) outlaw (TTP).

They also explored strategies for efficient management of the border of Pakistan-Fanganistan, braking drug trafficking and regulation of cross-border movement.

In addition, the repatriation process of Afghan citizens who reside illegally in Pakistan was another key discussion issue.

Speaking on the occasion, NAQVI emphasized that terrorist organizations are feeding restlessness and instability, and that both countries must work together to eliminate such threats. He reaffirmed Pakistan’s commitment to promote fraternal and durable relationships with Afghanistan.

He also highlighted the hospitality of Pakistan decades towards millions of Afghan refugees, noting that the doors of the country remain open for Afghan citizens who arrive through legal channels.



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