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ISLAMABAD, Jul 24 (APP):Pakistan and Afghanistan have signed a Pre -Preferential Trade Agreement (PTA) Framework on eight agriculture items, which is significant for tariff rationalization and trade liberalization between the two countries.
Pakistan and Afghanistan have signed Early Harvest Programme (EHP) , a one-year agreement on eight agricultural items for tariff rationalization, which will provide a foundation for the finalization of the upcoming bilateral PTA.
The agreement was formally signed between the Afghan Industry and Commerce Ministry, represented by interim deputy minister, Mullah Ahmadullah Zahid, and the Pakistani Commerce Ministry, represented by Federal Secretary Commerce, Jawad Paul.
The EHP will effect from August 1st, 2025 and also be active for one year on renewable basis and the agreement also allows for the future inclusion of additional items, the preliminary pace for starting the dialogue on bilateral PTA between both sides.
Under the agreement, 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 including mango, Citrus (kinnow) , banana, and potato ,which previously surpassed 60 percent, will now be reduced to 27 percent.
Following frequent ups and downs, bilateral trade volume between Afghanistan and Pakistan rose by 25 percent in the fiscal year 2024-25, reaching $1.9 billion, up from $1.6 billion recorded in the previous fiscal.
Meanwhile, talking to APP, President, Federation Pakistan Chamber of Commerce and Industry (FPCCI) greeted the trade liberalization agreement between Pakistan and Afghanistan for reducing tariff on eighth agricultural items on import and export of both sides.
The President FPCCI said that neighboring Afghanistan is significant player for increasing the regional trade and both of the countries can play significant role regional economic connectivity
Afghanistan is a key side for economic integration with Central Asian Republics (CARs) and a trade agreement between Pakistan and Afghanistan will enhance the flow of Pakistan’s trade items in the CARs market.