The Joint Chamber of Afghanistan and Pakistan said on Wednesday that Kabul and Islamabad have agreed on an agreement to reduce tariffs on commodities in bilateral trade and transit affairs between the two countries.

Pakistani media reported that based on the “Preferential Trade Agreement,” Afghanistan will reduce taxes by 60 percent on coals being exported to Pakistan.

“By signing the agreement, the problems in tariffs will be solved. A specific sector will go forward towards commercial improvement and trade between the countries will increase,” said Najibullah Safi, head of the Afghanistan and Pakistan Joint Chamber.

The Ministry of Industry and Commerce (MoIC) said the reduction of taxes on five items of fruits and vegetables being imported from Pakistan, has been agreed upon.

Akhundzada Abdul Salam Jawad, a spokesman for the MoIC, said coal will be sold based on international prices.

“We share the lists of fruits and vegetables which are being spoiled soon so that there is no problem in the future. There were discussions about coal. Afghanistan is working on a procedure to make our prices based on the market,” he said.

Investors said that Pakistan plays an important role in Afghanistan's trade.

“The problems that exist due to political issues push traders to avoid trade via Pakistan as much as other ports,” said Mahbobullah Mohammadi, an investor.

Figures by the Ministry of Industry and Commerce (MoIC) show that over $1 billion worth of commodities has been exported abroad over one last year.

According to the MoIC, $744 million has only been exported to Pakistan during this period.