ISLAMABAD – In a bid to breathe new life into regional trade, Pakistan and Afghanistan have officially signed a preferential trade agreement, marking a significant step toward deepening economic ties between the two neighbours.
The development was confirmed by Muhammad Sadiq, Pakistan’s Special Representative for Afghanistan, who said the accord includes the implementation of an “Early Harvest Program” — a fast-track initiative designed to kickstart mutual trade benefits.
Under the terms of the agreement, customs duties on select goods will be slashed from 60% to 27%, offering much-needed relief to traders on both sides of the border. The deal is set to take effect from August 1, 2025, and will initially remain in force for one year. However, both governments have left the door open for renewal, depending on its success.
“This is a win-win arrangement,” said Sadiq, highlighting that the deal isn’t just about numbers but about strengthening long-term economic cooperation.
As part of the pact, Pakistan will export key agricultural products to Afghanistan — including mangoes, oranges, bananas, and potatoes. In return, Afghan exports will feature seasonal fruits and vegetables such as grapes, pomegranates, apples, and tomatoes heading to Pakistani markets.
Officials believe the agreement could help stabilise supply chains, reduce trade costs, and foster goodwill in a region where cross-border commerce has often been hampered by politics and policy delays.
With the agreement now signed, both Islamabad and Kabul are expected to begin technical-level talks to iron out implementation details and set up monitoring mechanisms to ensure smooth trade flow once the agreement comes into effect.
