By Aamir Latif
KARACHI, Pakistan (AA) - Pakistan and Afghanistan have inked a preferential trade agreement to "significantly" reduce tariffs on their respective export items, Kabul's Embassy in Islamabad announced Wednesday on X.
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 deputy minister, Jawad Paul.
Under the deal, 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 -- mango, kinnow, banana, and potato -- which previously exceeded 60%, will now be reduced to 27%.
The agreement, becoming effective on Aug. 1 for a period of one year, is renewable and also allows for the inclusion of additional items in the future.
Following frequent ups and downs, bilateral trade volume between Afghanistan and Pakistan rose by 25% in the fiscal year 2024–25, reaching $1.9 billion, up from $1.6 billion recorded in the previous fiscal.
In a related development, Afghanistan's interim Foreign Minister Mullah Amir Khan Muttaqi is expected to visit Pakistan in the first week of August, local broadcaster 24News reported, citing diplomatic sources.
There was no official announcement yet about the visit from either side.
This will be Muttaqi’s first official trip to Pakistan since November 2021.