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Pakistani cabinet approves tariff concessions in trade with Afghanistan

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Pakistan trade

In a significant step aimed at enhancing Pak-Afghan trade relations, Pakistan’s cabinet on Thursday approved a series of tariff concessions on bilateral trade with Afghanistan, according to a report by 24NewsHD TV.

According to the report, the cabinet endorsed a summary presented by the Ministry of Commerce under the framework of the Early Harvest Programme. The agreement on this initiative was reportedly finalized between the two countries just last week.

The new arrangement is expected to boost trade volumes between Pakistan and Afghanistan by offering reduced tariffs on select agricultural products.

Pakistan will offer concessions ranging from 5% to 26% on four key Afghan exports. For instance:

  • The existing 5% duty on Afghan tomatoes will be removed, lowering the overall tax from 27% to 22%.

  • Similarly, a 26% duty on grapes, pomegranates, and apples imported from Afghanistan will be scrapped, bringing their total tax down from 53% to 27%.

In return, Afghanistan will extend reciprocal tariff reductions on four Pakistani products, offering concessions between 20% and 35%:

  • Customs duties on Pakistani potatoes and bananas will be cut by 35% and 30%, respectively. This will reduce the tax on potatoes exported to Afghanistan from 57% to 22%.

  • Additionally, Afghanistan will eliminate the 20% duty on Pakistani kinnow (mandarins) and mangoes, reducing their tax rate from 47% to 27%.

 

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Afghanistan, Kuwait explore new investment and trade opportunities

The Afghan Embassy in Kuwait said the talks focused on Afghanistan’s security and stability, economic potential and available investment opportunities.

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Afghanistan and Kuwait have discussed expanding trade and investment cooperation during a meeting between Afghanistan’s Chargé d’Affaires in Kuwait, Mohammad Shafiq Khatib, and prominent Kuwaiti investor Ajeej Khalaf, along with a number of businessmen and investors.

The Afghan Embassy in Kuwait said the talks focused on Afghanistan’s security and stability, economic potential and available investment opportunities.

The sides stressed the importance of strengthening trade and economic ties and expanding investment cooperation between the two countries.

Khatib invited Kuwaiti businessmen and investors to visit Afghanistan, explore investment opportunities and consider investing in various sectors of the Afghan economy.

The meeting comes as Afghanistan seeks to attract more foreign investment and strengthen economic and commercial ties with regional and international partners.

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Azizi: Afghanistan ready to attract Chinese and Uzbek investment

On the sidelines of the conference, Azizi and his delegation visited an exhibition showcasing Uzbek products and manufactured goods.

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Afghanistan is ready to attract investment from Chinese and Uzbek companies across key sectors of the economy, Minister of Industry and Commerce Nooruddin Azizi said at a trade conference in Uzbekistan’s Termez.

Speaking at the Surkhandarya–China Trade Conference, Azizi said recent exchanges between Afghan, Uzbek and Chinese officials and business delegations had opened new opportunities for trade, transit and investment.

He described China as a key economic partner and an important player in strengthening regional connectivity, while emphasizing the need to increase Afghan exports to regional markets, particularly China.

Azizi said Afghanistan was prepared to facilitate investment by Chinese and Uzbek companies in mining, agriculture, food processing, energy, manufacturing, machinery and economic infrastructure.

He also called for the development of new transit corridors linking Central Asia with China, saying Afghan exports could be transported through Uzbekistan’s trade networks to China and other regional markets.

The minister said joint investment and the processing of Afghanistan’s raw materials inside the country could create sustainable and mutually beneficial economic opportunities across the region.

Officials from Afghanistan, Uzbekistan and China, as well as private-sector representatives, attended the conference.

Balkh Governor Mohammad Yousuf Wafa highlighted the longstanding friendly relations between Afghanistan and Uzbekistan and the investment opportunities available in Balkh province.

On the sidelines of the conference, Azizi and his delegation visited an exhibition showcasing Uzbek products and manufactured goods.

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Uzbekistan, Kazakhstan target Afghanistan in push to expand regional trade

According to Uzbek media, the initiative was discussed during the Uzbek-Kazakh Business Forum in Tashkent.

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Uzbekistan and Kazakhstan are seeking to deepen economic cooperation and jointly expand into new regional markets, including Afghanistan, as part of broader efforts to strengthen trade and investment across Central Asia and the Middle East.

According to Uzbek media, the initiative was discussed during the Uzbek-Kazakh Business Forum in Tashkent, where business leaders and trade associations from both countries explored opportunities to promote their products in third-country markets, particularly Afghanistan, Syria and Iraq.

Afghanistan featured prominently in the discussions, with participants noting that Kazakhstan’s exports to Afghanistan reached nearly $500 million during the first seven months of 2025—almost matching the country’s total exports to Afghanistan for all of 2024. Officials said the long-term goal is to increase exports to $3 billion.

The forum also highlighted growing imports of mineral raw materials from Afghanistan. Participants discussed a proposed agreement to supply Afghan zinc ore to the Almalyk Mining and Metallurgical Complex in Uzbekistan.

Beyond Afghanistan, delegates examined emerging business opportunities in Syria and Iraq, where reconstruction efforts are expected to drive demand for food products, construction materials and industrial goods.

The forum also focused on improving regional logistics. Officials discussed using available capacity on Turkish freight trucks transiting Uzbekistan, a move expected to reduce transport costs and improve access to regional markets.

At the conclusion of the forum, both sides agreed to organise joint business missions to third-country markets, including Aleppo, Syria, in late September and Erbil, Iraq, in early October, with the aim of strengthening commercial partnerships and identifying new investment opportunities.

The discussions reflect growing economic cooperation between Uzbekistan and Kazakhstan as both countries seek to expand regional connectivity, diversify exports and strengthen trade links with neighbouring markets, including Afghanistan.

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