By Uzma Sahar 
In a significant move to strengthen bilateral trade ties, Pakistan and Afghanistan have signed a Preferential Trade Agreement (PTA) aimed at slashing tariffs and opening up key sectors of cross-border commerce. The agreement was signed in Islamabad on Wednesday, marking a pivotal shift in regional trade policy.
Pakistan’s Commerce Secretary Jawad Paul and Afghan Deputy Minister for Commerce and Industry Mulla Ahmadullah Zahid led their respective delegations during the signing ceremony. Officials from both sides hailed the development as a milestone in deepening economic cooperation between the neighboring nations.
Under the agreement, both governments have agreed to reduce existing tariff rates from 60% to 27%, allowing for a smoother flow of goods and encouraging competitive pricing in markets on both sides of the border.
Starting August 1, 2025, and valid for one year, the PTA covers a selective list of agricultural products. Pakistan will cut tariffs on imports of Afghan grapes, pomegranates, apples, and tomatoes, while Afghanistan will lower duties on Pakistani mangoes, kinnows, bananas, and potatoes.
The Ministry of Commerce stated that the agreement remains subject to approval by Pakistan’s federal cabinet, but once implemented, it could dramatically improve trade volumes and market access for both countries.
To further build on this momentum, both countries have also agreed to form a technical committee to work toward establishing a full Transit Trade Agreement, which could pave the way for longer-term cooperation in regional supply chain development.