Pakistan, Afghanistan Cut Trade Tariffs to 27%

Islamabad: Pakistan and Afghanistan on Wednesday agreed to slash tariffs on key export items from over 60% to 27%.

Afghan Deputy Minister of Industry and Commerce Mullah Ahmadullah Zahid and Pakistan's Commerce Secretary Javed Paul signed the Early Harvest Program under the Preferential Trade Agreement (PTA). Under this agreement, Pakistan will export mangoes, kinnows, bananas, and potatoes to Afghanistan, while Afghanistan will export grapes, pomegranates, apples, and tomatoes to Pakistan on preferential tariff. The tariff rates on these items, previously exceeding 60%, will be reduced to 27%. 
The program is effective for one year starting from 1 August 2025 and is renewable, allowing for the inclusion of additional items in the future.  Islamabad and Kabul have had strained relations over Tehreek-e-Taliban Pakistan (TTP), as Islamabad alleges Kabul for not taking action against the TTP, which has been based in Afghanistan.

Officials say the move is aimed at reducing trade costs, encouraging formal cross-border commerce, and supporting agricultural producers in both countries.
Pakistan is Afghanistan’s largest overall trade partner, top export destination, and third-largest import source. In 2017–18, bilateral trade stood at $1.75 billion, with Pakistan’s exports at $1.3 billion and imports from Afghanistan at $450 million. Major trade routes include Torkham, Chaman, Ghulam Khan, Kharlachi, Badini, and Angoor Adda.