Pakistan and Afghanistan Finalize Tariff Concessions to Boost Bilateral Trade
In a positive development for regional trade, Pakistan and Afghanistan have approved key tariff concessions under the newly signed Early Harvest Program (EHP). The federal cabinet gave its approval to the proposal from the Ministry of Commerce through circulation, with implementation set for August 1, 2025, to July 31, 2026.
🔻 Key Tariff Reductions Under the Agreement
The Early Harvest Program focuses on preferential tariff reductions for selected agricultural products traded between the two neighboring countries.
📦 Concessions by Pakistan (on Afghan exports):
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Tomatoes: 5% duty eliminated, reducing the total tax from 27% to 22%
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Grapes, Pomegranates, and Apples: Duty reduced from 26% to 0%, cutting the total tax from 53% to 27%
📦 Concessions by Afghanistan (on Pakistani exports):
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Potatoes: Customs duty cut from 57% to 22%
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Bananas: Duty reduced from 47% to 30%
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Quinoa and Mangoes: 20% reduction in customs duty, lowering the rate from 47% to 27%
Despite these reductions, both countries will continue to apply final duties ranging from 22% to 27% on the selected items.
🤝 Next Steps in Trade Cooperation
The agreement marks an important step toward enhancing trade ties. Both nations have expressed interest in initiating discussions for a comprehensive preferential trade agreement—a broader framework that may follow based on the successful implementation of the Early Harvest Program.
The initiative reflects a mutual commitment to regional economic cooperation, agricultural trade facilitation, and long-term partnership between Pakistan and Afghanistan.
