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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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‘Made in Afghanistan’ expo opens in Tashkent

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The Afghanistan Chamber of Commerce and Investment has announced that a major exhibition of Afghan products titled “Made in Afghanistan” is opening today (Wednesday) in Uzbekistan’s capital Tashkent.

According to the chamber, the expo—supported financially by the United Nations Development Programme—will run until Friday and aims to showcase Afghanistan’s production and export potential.

More than 60 booths have been set up by Afghan traders, featuring a wide range of products including carpets, dried and fresh fruits, saffron, pine nuts, cotton, precious and semi-precious stones, as well as beverages.

Officials from the chamber expressed hope that the expo will help expand trade relations between Afghanistan and countries in the region, particularly Uzbekistan.

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Afghani strengthens nearly 10% against US dollar amid banking sector reforms

The bank said it has expanded oversight of financial institutions and private lenders, improving transparency and promoting more consistent standards across the sector.

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Afghanistan’s central bank, Da Afghanistan Bank, says the national currency has appreciated by 9.93% against the US dollar during the year 1404, citing steady progress in the country’s financial and banking systems.

Officials attributed the gains to cautious monetary policies that have helped stabilise the Afghani against major global currencies while also boosting its value against the dollar.

The bank said it has expanded oversight of financial institutions and private lenders, improving transparency and promoting more consistent standards across the sector.

As part of efforts to better manage liquidity, authorities also collected and destroyed worn-out banknotes in circulation. At the same time, officials reported growth in electronic banking, with digital payment usage rising in recent months.

Central bank spokesperson Haseebullah Noori said initiatives are underway to broaden access to banking services nationwide, including the wider rollout of Islamic banking options.

Analysts welcomed the stabilisation efforts but stressed the need to address ongoing challenges facing domestic banks, including the impact of international financial sanctions on Afghanistan.

They added that expanding Islamic banking could help draw more savings into the formal financial system, noting that a significant share of personal wealth remains outside banks. Bringing those funds into the sector, they said, could inject billions of Afghanis into the economy and further support financial stability.

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Uzbekistan delivers over 290 tons of aid to Afghanistan

The assistance, provided ahead of Eid al-Fitr, is intended to support vulnerable communities while reinforcing ties between the neighboring countries.

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Uzbekistan has delivered more than 290 tons of humanitarian aid to Afghanistan, according to the country’s Ministry of Foreign Affairs.

The assistance, provided ahead of Eid al-Fitr, is intended to support vulnerable communities while reinforcing ties between the neighboring countries.

The shipment includes essential food supplies such as flour, rice, wheat, vegetable oil, instant meals, pasta, and confectionery. An official handover ceremony was held in the border town of Hairatan.

Local officials, including Balkh province representatives and authorities from Hairatan, expressed appreciation for the continued support, acknowledging Uzbekistan’s efforts to assist the Afghan people.

Among those present at the ceremony were Uzbekistan’s Ambassador to Afghanistan, Oybek Usmanov, and Surkhandarya regional governor Ulugbek Kosimov.

The aid delivery underscores Uzbekistan’s ongoing humanitarian engagement and its broader efforts to promote regional cooperation and stability.

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