Preferential Trade Agreement: Pakistan, Afghanistan reduce tariffs on 8 agricultural products

ISLAMABAD: In a major move toward normalising ties, Pakistan and Afghanistan have signed a Preferential Trade Agreement (PTA) to reduce tariffs on eight agricultural products, the Afghan embassy in Islamabad announced on Wednesday.

The agreement, signed by senior commerce officials from both countries, will reduce the customs duties on four Afghan exports to Pakistan — grapes, pomegranates, apples and tomatoes — and four Pakistani exports to Afghanistan — mangoes, kinnows, bananas and potatoes. Tariff rates on these items, which previously exceeded 60 percent, will now be capped at 27 percent. “This agreement will be effective for a period of one year, commencing on August 1, 2025,” the Afghan embassy said on X. “It is renewable and also allows for the inclusion of additional items in the future.” The deal was signed by Afghanistan’s Industry and Commerce Deputy Minister Mullah Ahmadullah Zahid and Pakistan’s Commerce Secretary Minister Jawad Paul.

In a related development, Afghanistan’s interim Foreign Minister Mullah Amir Khan Muttaqi is expected to visit Pakistan in the first week of August, according to media reports. However, there was no official word on it from either side. If the reports turn out to be true, this will be the first official visit of Muttaqi to Pakistan since November 2021 when he met with the then prime minister Imran Khan and discussed regional peace and bilateral cooperation and support. Last week, Pakistan’s Foreign Minister Ishaq Dar visited Kabul at the invitation of Mullah Muttaqi. Besides meeting Muttaqi, he also met the acting Afghan interior minister and held discussions on security and related matters.

Meanwhile, in a major diplomatic breakthrough, Pakistan and Bangladesh have agreed in principle to grant visa-free entry to the holders of diplomatic and official passports. The agreement came during a high-level meeting between Interior Minister Mohsin Naqvi and Bangladesh’s Home Minister Lieutenant General (retd) Jahangir Alam Chowdhury in Dhaka. Minister Naqvi, who is on an official visit to Bangladesh, was warmly received by his counterpart upon arrival at the Ministry of Home Affairs. He was presented with a guard of honour before the two sides began discussions. During the meeting, the two ministers held wide-ranging talks on bilateral issues and matters of mutual interest, with a particular focus on strengthening cooperation in internal security and law enforcement. Both sides expressed a strong desire to deepen collaboration in key areas, including counter-terrorism, combating drug trafficking, and preventing human smuggling. One of the most significant outcomes of the meeting was the mutual agreement to allow visa-free travel for officials and diplomats — a move seen as a step toward easing bureaucratic barriers and enhancing bilateral engagement. The ministers also discussed plans to exchange training programmes between the police academies, aiming to improve professional capacity and technical expertise. The Bangladeshi minister thanked Naqvi for offering support in police training and termed the visit an important milestone in advancing ties between the two countries. “I wholeheartedly welcome my brother upon his arrival in Dhaka. Your visit is of great importance for the promotion of Pakistan-Bangladesh relations,” said the Bangladeshi minister. To follow up on the decisions taken during the meeting, both sides agreed to form a joint committee. Pakistan’s Interior Secretary Khurram Agha will lead the Pakistani side in this coordination effort. The committee will oversee the implementation of agreed initiatives and explore further avenues for cooperation.

As part of the growing partnership, a high-level delegation from Bangladesh is expected to visit Islamabad soon to study Pakistan’s Safe City Project and tour the National Police Academy. The meeting, attended by senior government officials and diplomats from both countries, marks a new chapter in efforts to build trust and collaboration between Islamabad and Dhaka. It underscores a shared commitment to regional security, institutional development, and diplomatic engagement.

Earlier in April, Pakistan and Bangladesh welcomed the launch of direct shipping between Karachi and Chittagong and underscored the need to resume direct air links. The development came during the 6th round of Foreign Secretary Level Consultations (FSLC) held in Dhaka on April 17. Both sides also expressed satisfaction over the progress made in easing travel and visa facilitation. The talks, commencing after a hiatus of 15 years, were led by the Foreign Secretary of Pakistan Amna Baloch and Bangladesh’s Foreign Secretary Md Jashim Uddin, and were held in a cordial atmosphere, reflecting a shared resolve to revitalise bilateral engagement, the statement mentioned.