‘Deal’ in principle for EU to drop Pakistan trade tariffs

European leaders struck a “deal” in principle on Thursday to ditch or reduce tariffs on Pakistani export products, a senior diplomatic source told AFP.

“There is a deal on Pakistan aid,” the source said as European Union leaders, identifying a readiness among the 27 EU heads of government and state to offer trade favours to flood-ravaged Islamabad as it battles extremism.

The details, the source said, would be worked out in October when the European Commission would come up with proposals.

A separate source earlier indicated that leaders were considering a political statement of intent ahead of foreign ministers taking up the issue next month.