Pakistan and Afghanistan, in a major development in trade relations, have signed a Preferential Trade Agreement (PTA) to reduce tariffs on each other’s imports, Ministry of Commerce officials here said.
Afghan Deputy Minister for Commerce and Industry Mulla Ahmadullah Zahid and Pakistan’s Commerce Secretary Jawad Paul signed the agreement at a ceremony in Islamabad on Wednesday.
PTA used to be a trade deal between two or more countries where they agree to reduce or eliminate tariffs and other trade barriers on certain goods and services traded between them.
Both countries have agreed to reduce tariff rates to 27% from 60 percent.
