In a major breakthrough for regional commerce, Pakistan and Afghanistan have signed a Preferential Trade Agreement (PTA), marking a new chapter in bilateral trade relations between the two neighbouring countries.
According to a spokesperson from the Embassy of the Islamic Emirate of Afghanistan in Islamabad, the agreement was officially signed during a ceremony in the Pakistani capital. Afghanistan’s Deputy Minister of Industry and Commerce, Mullah Ahmadullah Zahid, and Pakistan’s trade official Jawad Pal were the signatories of the deal.
Under the terms of the agreement, the tariff on Afghan exports to Pakistan will be slashed from over 60 percent to 27 percent — a significant reduction expected to boost cross-border trade volume. Afghan exports such as grapes, pomegranates, apples, and tomatoes are already en route to Pakistani markets.
On the flip side, Pakistan will continue exporting agricultural products including mangoes, quinoa, bananas, and potatoes to Afghanistan.
The agreement, which takes effect on August 1, 2025, will initially remain valid for one year but is renewable. Officials from the Afghan Embassy noted that more products may be added to the trade list in future phases of the agreement.
“This agreement represents a key step in enhancing regional trade cooperation and easing economic tensions between the two nations,” said the Afghan Embassy spokesperson.
The move is seen as a strategic shift toward economic diplomacy amid broader efforts to stabilise the region through mutual economic interests and reduced trade barriers.