ISLAMABAD: Pakistan and Afghanistan are set to sign a long-awaited Preferential Trade Agreement (PTA), which will take effect from August 1, 2025, enabling duty-free bilateral exports and imports of selected fruits and dry fruits, BR reported, citing sources from the Ministry of Commerce.
According to the news report, the final talks are taking place in Islamabad, and the agreement is expected to address past setbacks caused by Indian influence during the presidencies of Hamid Karzai and Ashraf Ghani. The previous Afghan government’s demand to allow the import of Indian goods via Pakistan was never accepted by Islamabad.
Afghan Deputy Minister for Commerce and Industry Ahmadullah Zahid, along with technical experts, arrived in Pakistan on Monday for discussions with the Ministry of Commerce.
The draft PTA proposes an Early Harvest Program (EHP) to facilitate trade between the two countries. The program will reduce tariffs and duties on select agricultural goods, including tomatoes, grapes, apples, and pomegranates from Afghanistan, and potatoes, kinnows, bananas, and mangoes from Pakistan.
The agreement also outlines a process for establishing a comprehensive PTA based on the performance of the EHP. The agreement stipulates that the agricultural products must meet the criteria of being harvested or gathered in the respective exporting countries and be accompanied by a Certificate of Origin issued by the designated authorities.
The Early Harvest Program will begin on August 1, 2025, and is expected to last for one year, until July 31, 2026. The program may be extended upon mutual agreement, with all concessions based on reciprocity and parity.
A PTA Implementation Committee will be formed to oversee the program, comprising representatives from the Ministry of Industry and Commerce (Afghanistan), Ministry of Commerce (Pakistan), Customs, and Agriculture Ministries of both countries. This committee will meet monthly to monitor and evaluate the program’s progress.
The agreement had already been cleared at the level of the Special Investment Facilitation Council (SIFC). A high-level meeting at the Prime Minister’s Office was held to finalise the draft of the PTA, signalling the commitment of both countries to enhancing economic cooperation.
