Pakistan, Afghanistan Slash Tariffs on Key Farm Goods Under New Trade Deal

Pakistan and Afghanistan have made significant progress in boosting bilateral trade. The federal cabinet has approved tariff concessions under the recently signed Early Harvest Program. Official sources told ProPakistani that the summary from the Ministry of Commerce was approved through circulation, and the concessions will be implemented from August 1, 2025, to July 31, 2026. The Early Harvest Program includes preferential tariff reductions on select agricultural products. Under the agreement, Pakistan will grant tax concessions ranging from 5 to 26 percent on four Afghan products. This includes the elimination of a 5 percent duty on Afghan tomatoes, reducing the total tax from 27 to 22 percent. Additionally, Pakistan will cut the 26 percent duty on Afghan grapes, pomegranates, and apples, bringing the tax down from 53 to 27 percent. In return, Afghanistan will offer 20 to 35 percent tax concessions on four Pakistani products. The customs duty on Pakistani potatoes will be reduced from 57 to 22 percent, and on bananas from 47 to 30 percent. Afghanistan will also reduce the customs duty on Pakistani quinoa and mangoes by 20 percent, lowering the tax from 47 to 27 percent. Despite the concessions, both countries will continue to impose taxes ranging from 22 to 27 percent on the listed products. Both countries have also agreed to begin negotiations for a comprehensive preferential trade agreement based on the performance of the Early Harvest Program and mutual satisfaction with its outcomes.