Pakistan-Afghanistan trade is set to improve as both countries move forward with the implementation of tariff concessions under the newly signed Early Harvest Program. The federal cabinet has approved these concessions via a summary circulated by the Ministry of Commerce.
The preferential trade terms will take effect from August 1, 2025, and remain valid until July 31, 2026. This marks a significant step toward enhancing bilateral trade ties between the two neighboring countries.
Under the Early Harvest Program, Pakistan will reduce or eliminate tariffs on four Afghan agricultural goods. These include a 5 percent duty waiver on Afghan tomatoes, lowering the total tax from 27 percent to 22 percent. Additionally, a 26 percent duty cut will be applied to Afghan grapes, pomegranates, and apples, bringing the total tax on these products down from 53 percent to 27 percent.
In return, Afghanistan will grant tax concessions ranging from 20 to 35 percent on four major Pakistani exports. The customs duty on Pakistani potatoes will drop from 57 percent to 22 percent, while bananas will see a reduction from 47 percent to 30 percent. Afghan authorities will also cut duties on Pakistani quinoa and mangoes by 20 percent, reducing the overall tax from 47 percent to 27 percent.
Despite the new concessions, Pakistan-Afghanistan trade in these goods will still involve duties between 22 and 27 percent, ensuring revenue for both nations while promoting mutual trade benefits.
Looking ahead, the two countries have agreed to initiate talks on a broader preferential trade agreement. This future deal will be based on the performance and outcomes of the Early Harvest Program over the next year.
These developments signal a promising shift in Pakistan-Afghanistan trade relations, potentially paving the way for deeper economic cooperation in the region.