The United States and Pakistan have finalised a deal that will lower tariffs for Pakistan and include US assistance in developing the country鈥檚 oil reserves, officials from both sides confirmed as reported by The Economic Times.
鈥榃e have just concluded a Deal with the Country of Pakistan, whereby Pakistan and the United States will work together on developing their massive Oil Reserves,鈥� US president Donald Trump said in a social media post on Wednesday.
鈥榃e are in the process of choosing the Oil Company that will lead this Partnership,鈥� he added, without providing further details.
The announcement came hours after Trump announced a 25 per cent tariff on all goods coming from India, plus an additional penalty for purchases of Russian military equipment and energy.
Pakistan currently imports oil from the Middle East to meet its energy demands, but there are reports about vast offshore deposits that are largely unexplored due to a lack of technical expertise and funds. The country has been trying to lure in investments to tap into these reserves.
Pakistani foreign minister Ishaq Dar also confirmed the agreement on social media but did not elaborate, The Economic Times reports.
While Trump did not mention tariffs, Pakistan鈥檚 finance ministry said that Thursday the trade deal 鈥榳ill result in reduction of reciprocal tariffs especially on Pakistani exports to the United States,鈥� though it did not specify the tariff levels.
鈥楾his deal marks the beginning of a new era of economic collaboration especially in energy, mines and minerals, IT, cryptocurrency and other sectors,鈥� the ministry said.
Pakistan had faced the prospect of a 29 per cent tariff on exports to the US under tariffs announced by Washington in April, which were later suspended for 90 days to allow for negotiations.
Last week, Dar said, a trade deal was 鈥榲ery close鈥� after his meeting with US secretary of state Marco Rubio, where they discussed expanding trade and cooperation in critical minerals and mining.
US trade data showed that total goods trade with Pakistan was $7.3 billion in 2024, up from $6.9 billion in 2023, with a goods trade deficit of $3 billion last year.
