Pakistan’s federal cabinet has approved lower tariffs on trade with Afghanistan in a move officials said was aimed at boosting cross-border commerce and easing consumer prices, according to local media reports.
The decision, reported Thursday by the 24 News television network, followed an agreement reached between the two countries last week on what they called an “early harvest” program to promote trade. Pakistan’s Commerce Ministry submitted the proposal, which the cabinet endorsed after review.
Under the new arrangement, Pakistan will remove or reduce import duties on several Afghan agricultural products. A 5% tariff on tomatoes has been eliminated, while duties on grapes, pomegranates and apples were cut from 53% to 27%.
In return, Afghanistan will reduce tariffs on Pakistani exports. The duty on Pakistani potatoes will drop from 57% to 22%, while tariffs on bananas will fall by 30%. Customs duties on mangoes and coconuts will be lifted, and other taxes reduced from 47% to 27%.
The measures are intended to expand bilateral trade, lower the cost of key goods and strengthen economic ties between the neighbors, whose relations have often been strained by political and security tensions, according to 24 News.
