Pakistani cabinet approves tariff concessions in trade with Afghanistan

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%.