Pakistan and Afghanistan are poised to sign a long-awaited Preferential Trade Agreement (PTA), set to become operational on August 1, 2025.

According to Business Recorder, agreement will facilitate duty-free import and export of specific fruits and dry fruits between the two countries.Negotiations to finalize the pact are currently underway in Islamabad.

Previous attempts were stalled due to the influence of Indian consultants during the administrations of former Presidents Hamid Karzai and Ashraf Ghani. A key demand from the previous Afghan government was the transit of Indian goods through Pakistan to Afghanistan, a request consistently rejected by Islamabad.

Afghan Deputy Minister for Commerce and Industry, Ahmadullah Zahid, along with a team of technical experts, arrived in Pakistan to engage with Pakistani Commerce Ministry officials on the PTA.The proposed PTA draft outlines an Early Harvest Programme (EHP) to boost trade and economic cooperation. Key provisions include preferential tariff concessions on selected agricultural goods.

Afghanistan will export tomatoes, grapes, apples, and pomegranates, while Pakistan will export potatoes, kinnows, bananas, and mangoes.The agreement also stipulates negotiations for a comprehensive PTA following the EHP, contingent on its success and mutual satisfaction.

Rules of origin, certification procedures, implementation dates, duration, reciprocity, and the establishment of a PTA Implementation Committee are also detailed within the draft.

Sources indicate the draft agreement has received approval at the State Bank of Pakistan (SIFC) level and has been reviewed in a high-level meeting at the Prime Minister’s Office. The agreement is a government-to-government (G2G) arrangement, with no private sector involvement in the negotiations.