logo
Pakistan, Afghanistan all set to sign PTA

Pakistan, Afghanistan all set to sign PTA

ISLAMABAD: Pakistan and Afghanistan are all set to sign the long-awaited Preferential Trade Agreement (PTA) to be operational from August 1, 2025 which will include bilateral duty-free export and import of some fruits and dry fruits, well informed sources in Commerce Ministry told Business Recorder.
Both countries are holding talks in Islamabad to finalise the pact which remained inconclusive due to influence of Indian Consultants during the regimes of former President Hamid Karzai and Ashraf Ghani. The key demand of the previous Afghan government was to allow import of Indian goods via Pakistan to Afghanistan which was never accepted by Islamabad.
Afghan Deputy Minister for Commerce and Industry Ahmadullah Zahid, along with senior technical experts, arrived in Pakistan Monday night for talks with officials of Ministry of Commerce on bilateral Preferential Trade Agreement (PTA).
Afghan Deputy Minister arrives
According to proposed draft PTA, recognising the importance of facilitating bilateral trade between the Islamic Emirate of Afghanistan and the Islamic Republic of Pakistan, the Ministry of Industry and Commerce, Afghanistan (MoIC) and the Ministry of Commerce, Pakistan (MoC) agree to implement an Early Harvest Programme (EHP) to enhance trade flows and economic cooperation between the two countries.
Article 1: Preferential Tariff Treatment: (i) the Contracting Parties — the Islamic Emirate of Afghanistan ('Afghanistan') and the Government of Pakistan ('Pakistan'), hereinafter collectively referred to as the 'Contracting Parties' and individually as a 'Contracting Party' — agree to provide Preferential Tariff Concessions on a selected list of agricultural goods under the Early Harvest Program; and (ii) the concessions shall be implemented by reducing tariffs and duties on the following products originating in the respective territories and destined for the other: Afghanistan exports: tomatoes, grapes, apples, and pomegranates while Pakistan will export potatoes, kinnows, bananas and mangoes
Article 2: Development of Preferential Trade Agreement (PTA): The Contracting Parties agree to initiate negotiations for a comprehensive Preferential Trade Agreement (PTA) based on the performance of the Early Harvest Program and mutual satisfaction of both sides.
Article 3: Rules of Origin: The agricultural products listed above must be: (i) harvested, picked, or gathered in the exporting country; (ii) wholly obtained, and (iii) accompanied by a Certificate of Origin issued by the designated authority of each country to qualify for preferential treatment.
Article 4: Certification; (i) for Pakistan, the Certificate of Origin shall be issued by the Trade Development Authority of Pakistan (TDAP); and (ii) for Afghanistan, the Certificate of Origin shall be issued by the Ministry of Industry and Commerce (MoIC).
Article 5: Implementation Date: The Early Harvest Program shall be implemented starting 1st August 2025.
Article 6: Duration and Reciprocity: (i) the tariff concessions shall be granted for a period of one year, from 1st August 2025 to 31st July 2026 ;(ii) the program may be extended upon mutual agreement; and (iii) all concessions are to be based on reciprocity and parity.
Article 7: PTA Implementation Committee: a PTA Implementation Committee shall be formed to oversee the Early Harvest Program. It shall: (i) be led by MoIC (Afghanistan) and MoC (Pakistan); (ii) include representatives from Customs and Agriculture Ministries of both countries ;(iii) meet on a monthly basis, and ;(iv) be responsible for monitoring, evaluation, and recommending improvements to the programme.
'It is G2G arrangement between Pakistan and Afghanistan, hence private sector has not been involved in these talks,' said Junaid Makda and Zia ul Haq Sarhadi while talking to Business Recorder.
According to sources, the draft agreement has already been cleared at the level of SIFC. In this regard a high-level meeting was held in PMO to finalise the draft of the pact.
Copyright Business Recorder, 2025
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Risk boost from US-EU trade deal of little help to Indian rupee as outflows persist
Risk boost from US-EU trade deal of little help to Indian rupee as outflows persist

Business Recorder

timean hour ago

  • Business Recorder

Risk boost from US-EU trade deal of little help to Indian rupee as outflows persist

MUMBAI: The Indian rupee is expected to open little changed on Monday, with any support from improved risk sentiment after a trade deal between the European Union (EU) and the U.S. likely to be capped by persistent foreign portfolio outflows. The 1-month non-deliverable forward indicated the rupee will open in the 86.48-86.51 range versus the U.S. dollar, compared with Friday's close of 86.5150. Global stocks rose and the euro firmed after the weekend deal between the EU and the U.S., which set the import tariff on most EU goods at 15% - half the rate initially threatened. Asian currencies traded mixed, while the dollar index was at 97.6. The U.S.-EU trade pact is expected to reduce trade-related uncertainty in a week dominated by central bank policy decisions and the U.S.'s August 1 deadline for trading partners to strike deals. Washington has already signed similar framework accords with Britain, Japan, Indonesia and Vietnam. Meanwhile, India's trade minister told Reuters last week that the country is also hopeful of reaching a deal with the U.S. that includes 'special and preferred treatment'. Alongside these, monetary policy meetings in the U.S., Japan and other economies will be in focus this week. While the Federal Reserve is widely expected to keep rates unchanged, ANZ said it will watch for 'tweaks to the language' in the Fed's statement and Chair Jerome Powell's comments for clues on possible rate cuts in September. Over the week, traders expect the rupee to hover between 86.20 and 86.80-86.90, with a slight depreciation bias given the persistent outflows from local stocks. Foreign investors have net sold Indian equities worth about $750 million so far in July, reversing three months of inflows.

Pakistan reaffirms balanced ties with US, China
Pakistan reaffirms balanced ties with US, China

Express Tribune

time2 hours ago

  • Express Tribune

Pakistan reaffirms balanced ties with US, China

Listen to article Deputy Prime Minister and Foreign Minister Ishaq Dar reaffirmed Pakistan's commitment to maintaining strong relations with both China and the United States, stressing that its partnership with Washington should not be seen through the lens of its close ties with Beijing. Addressing the Pakistani community at the Consulate General in New York, Dar highlighted the country's diplomatic resurgence on the global stage, saying Pakistan had emerged from a period of diplomatic isolation and was now witnessing signs of economic revival. He called upon the United Nations and the Organization of Islamic Cooperation (OIC) to move beyond rhetoric and take concrete steps toward resolving long-standing conflicts, particularly Palestine and the Jammu and Kashmir. "These disputes are critical for global peace," he said, stressing that the OIC, as the world's second-largest multilateral body, must transition from a symbolic role to a decisive one. He reiterated Pakistan's stance that a two-state solution remained the only viable resolution to the Palestinian crisis. Dar termed the UN Security Council Resolution 2788 a diplomatic victory for Pakistan. The resolution, adopted unanimously under Pakistan's presidency, focuses on "strengthening mechanisms for the peaceful resolution of disputes". On Pakistan-India relations, Dar expressed Islamabad's willingness to engage in talks if invited, stating that resolving the Kashmir issue could unlock regional development, tourism, and investment. "Pakistan is ready for US mediation, but India's consent is necessary," he said. "If the US plays a proactive role, Kashmir dispute could be resolved," the foreign minister told the gathering. He welcomed the possibility of US President Donald Trump's visit to Pakistan, but said that any formal announcement would be made by both the countries. He reaffirmed Pakistan's resolve to defend its sovereignty and regional stability, recalling the country's firm and resolute response during Operation Bunyanum Marsoos that led to the downing of six Indian aircraft. He praised the unity demonstrated by the nation and the diaspora during that critical moment. Rejecting India's allegations against Pakistan, Dar stated that the Lashkar-e-Taiba (LeT) had already been dismantled, while the US had not provided evidence against the so-called "TRF" – the outfit India had blamed for the Pahalgam attack in April. On regional situation, Dar emphasised Pakistan's outreach to Afghanistan with a view to enhancing regional connectivity through rail and trade corridors to Central Asia. He hoped Afghan soil would not be used for terrorism, noting the recent assurances received from the Afghan authorities in that regard. He also mentioned Pakistan's diplomatic efforts for de-escalating the Iran-Israel hostilities. He said the Iranian president would visit Pakistan soon. He reiterated Pakistan's commitment to the peaceful settlement of disputes, including Jammu and Kashmir and Palestine. Economic recovery Painting an optimistic outlook, Dar noted a sharp decline in inflation from 40% to 2.4% as of January 2025, crediting government policies and international engagement. "The global credit rating agencies have acknowledged Pakistan's improved macroeconomic outlook," he said. He outlined key government initiatives, particularly the Special Investment Facilitation Council (SIFC), designed to streamline investment procedures and unlock opportunities in priority sectors. He said that Pakistan aspired to join the G-20. He told the Pakistani-American diaspora that the country had successfully completed the International Monetary Fund (IMF) programme. He invited the diaspora to actively contribute to Pakistan's development, particularly in investment, trade, education, and digital innovation. The DPM assured the community that the government was actively working toward an early resumption of Pakistan International Airlines (PIA) flights, including steps toward restoring routes to Europe and the United Kingdom, in line with international aviation compliance standards. Concluding his address, Dar reaffirmed Pakistan's belief in diplomacy and dialogue, citing its UN Security Council presidency and efforts to promote peaceful dispute resolution. He also reiterated Pakistan's push for the release of Dr Aafia Siddiqui, imprisoned in the US. "Pakistan is no longer isolated — we have friends across the world," Dar declared, underscoring the nation's renewed global standing and economic resurgence under Prime Minister Shehbaz Sharif's leadership. (WITH INPUT FROM APP)

Govt bans land travel for Arbaeen pilgrims
Govt bans land travel for Arbaeen pilgrims

Express Tribune

time3 hours ago

  • Express Tribune

Govt bans land travel for Arbaeen pilgrims

Listen to article The federal government banned the overland travel for pilgrims heading to Iraq for the Arbaeen, citing security concerns in the restive Balochistan province, Interior Minister Mohsin Naqvi confirmed on Sunday. Naqvi said that the decision had been taken after consultations with the Foreign Ministry, the Balochistan government, and the security agencies, adding that the pilgrims would be allowed to travel to Iraq only by air. Arbaeen, marking the 40th day of mourning after Ashura, sees millions of pilgrims, including thousands from Pakistan, travel to Karbala, Iraq, annually. Traditionally, many Pakistani pilgrims journey by road through Balochistan and Iran. However, due to the deteriorating law and order situation in the province — including increased terrorist attacks by Indian proxy outfits — the government deemed the move necessary for public safety and national security. "After extensive consultations with the Ministry of Foreign Affairs, Balochistan Government, and security agencies, it has been decided that Zaireen will not be allowed to travel to Iraq and Iran by road for Arbaeen this year," Naqvi posted on X. "Zaireen will, however, be able to travel by air. Prime Minister Mian Muhammad Shehbaz Sharif has directed authorities to arrange maximum flights to facilitate their pilgrimage in the coming days," he added. "This difficult decision was taken in the interest of public safety and national security." On the direction of Prime Minister Shehbaz Sharif for arranging flights to facilitate the pilgrims, the Pakistan International Airlines (PIA) announced four special flights from Karachi between August 8 and 11, with return flights from Najaf scheduled from August 18 to 21. According to a PIA spokesperson the fare has been set at Rs212,000 per person, and the ticket sales had started. He added that more flights could be scheduled if necessary. Officials said passengers traveling by air individually will have to be sponsored by local people, otherwise they cannot enter Iraq. Meanwhile, private airlines have sharply increased fares, with tickets now ranging between Rs300,000 to Rs350,000. Tour operators estimate group travel expenses at $1,400 per pilgrim, compared to just $550 for land travel. This has raised fears that tens of thousands of low-income pilgrims might be unable to afford the journey. Salars — pilgrim group leaders — argue that the ban that has been announced just 15 days before Arbaeen has caused significant financial losses. They said that many people had already made advance payments for visas, vehicle certifications, and hotel bookings. They demanded that the government allowed supervised bus convoys under security agencies' protection or provide alternative transport arrangements. "This loss isn't borne by the rich but by the poor," a pilgrimage organiser told The Express Tribune on condition of anonymously. He questioned why the ban wasn't announced earlier during a recent trilateral meeting between Pakistan, Iran, and Iraq, where travel restrictions were discussed. During a meeting with Prime Minister Shehbaz Sharif, Naqvi briefed him on Balochistan's security situation and the new pilgrim policy. The prime minister directed for the initiation of the Gwadar Safe City project to enhance security in the region. Naqvi emphasised the need for better pilgrim management. Starting next year, he said, the pilgrims will only be allowed to travel under officially registered group organisers, with special embassy-issued visas required for independent travel. This system aims to curb illegal travel and overstaying issues. Meanwhile, Naqvi also visited Quetta and Azad Kashmir. In Quetta, he paid tribute to martyred soldiers at the Frontier Corps headquarters, praising their sacrifices in maintaining peace. Later, in Muzaffarabad, he met the family of Major Rab Nawaz, a martyred officer, and offered condolences.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store