Pakistan and Afghanistan on Wednesday reached a preferential trade agreement under which the two countries will significantly reduce tariffs on each other’s imports.

The agreement was signed at a ceremony in Islamabad by Afghan Deputy Minister for Commerce Mullah Ahmadullah Zahid and Pakistan’s Commerce Secretary Jawad Paul.

Under the agreement, both countries have agreed to reduce tariff rates from 60 per cent to 27 per cent.

The move is aimed at boosting bilateral trade and enhancing economic cooperation in the region.

The agreement will come into effect on August 1, 2025, and will be effective for an initial period of one year.

Under the agreement, Pakistan will reduce duties on grapes, pomegranates, apples and tomatoes imported from Afghanistan, while Afghanistan will reduce tariffs on mangoes, kinnow, bananas and potatoes coming from Pakistan.