Islamabad 1 August: Pakistan and Afghanistan have taken a major step toward strengthening bilateral trade ties through the implementation of tariff concessions under the newly signed Early Harvest Program (EHP).
According to news reports the federal cabinet approved the Ministry of Commerce’s summary via circulation, with the concessions effective from August 1, 2025, to July 31, 2026.
The EHP outlines preferential tariff reductions on key agricultural products. Pakistan will grant tax relief ranging from 5 to 26 percent on four Afghan exports. These include the elimination of a 5 percent duty on Afghan tomatoes—bringing the total tax from 27 to 22 percent—and slashing duties on Afghan grapes, pomegranates, and apples from 53 to 27 percent.
In return, Afghanistan will offer 20 to 35 percent duty concessions on four Pakistani products. The customs duty on Pakistani potatoes will drop from 57 to 22 percent, while taxes on bananas will fall from 47 to 30 percent. Afghan authorities will also reduce duties on Pakistani quinoa and mangoes by 20 percent, cutting them from 47 to 27 percent.
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Despite these cuts, both countries will continue to impose moderate duties—ranging from 22 to 27 percent—on the listed goods.
Encouraged by this development, Pakistan and Afghanistan have agreed to initiate talks for a broader preferential trade agreement, contingent on the success and mutual satisfaction with the Early Harvest Program’s results.
