ISLAMABAD: Pakistan and Afghanistan on Wednesday signed the much-awaited Preferential Trade Agreement (PTA), after two days of hectic deliberations.
The pact was signed by the visiting Deputy Minister of Industry and Commerce of Afghanistan, Mullah Ahmadullah Zahid, and Pakistan’s Commerce Secretary of Pakistan Javed Paul.
According to this agreement, Pakistan will reduce tariffs on four items — grapes, pomegranates, apples, and tomatoes — while Afghanistan will reduce tariffs on four items — mangoes, oranges, bananas, and potatoes. Previously, the tariffs on these items were over 60%, but will now be reduced to 27%.
This one-year agreement will come into effect on August 1, 2025. It can be extended in the future and additional items may also be included.
According to signed pact the Ministry of Industry and Commerce, Afghanistan (MoIC) and the Ministry of Commerce, Pakistan (MoC) agree to implement an Early Harvest Program (EHP) to enhance trade flows and economic cooperation between the two countries.
Both sides have agreed to provide Preferential Tariff Concessions on a selected list of agricultural goods under the Early Harvest Program; and (ii) the concessions shall be implemented by reducing tariffs and duties on the following products originating in the respective territories and destined for the other: Afghanistan exports: tomatoes, grapes, apples, and pomegranates while Pakistan will export potatoes, kinnows, bananas and mangoes.
PTA rate (custom duties and others) on Afghan tomatoes will be 22 % (400,000 tons) whereas rate on grapes (230,000 tons), apples (100,000 tons) and pomegranates (100,000 tons) will be 27 per cent.
For Pakistani goods, PTA duties on potatoes will be 22 %( 400,000 tons) while duties on others(Kinnows)(100,000 tons), banana( 230,000) and mango ( 100,000 tons) will be 27 %.
For Pakistan, the Certificate of Origin shall be issued by the Trade Development Authority of Pakistan (TDAP); and (ii) for Afghanistan, the Certificate of Origin shall be issued by the Ministry of Industry and Commerce (MoIC).
The Early Harvest Program shall be implemented starting 1st August 2025. The tariff concessions shall be granted for a period of one year, from 1st August 2025 to 31st July 2026 which may be extended upon mutual agreement. All concessions are to be based on reciprocity and parity.
PTA Implementation Committee shall be formed to oversee the Early Harvest Program to be led by MoIC (Afghanistan) and MoC (Pakistan). It will include representatives from Customs and Agriculture Ministries of both countries. The Committee will meet on a monthly basis, and will be responsible for monitoring, evaluation, and recommending improvements to the program.
