US and Pakistan Seal New Trade Deal with Promises and Oil

United States and Pakistan confirmed that they have finalized a trade deal. Pakistan said this agreement will reduce tariffs on its exports to the U.S., while U.S. President Donald Trump spoke about a separate partnership to develop Pakistan’s oil reserves. The deal signals renewed cooperation, especially on energy and trade between the two countries

US Announces Plan to Help Pakistan Develop Oil Reserves

Separately, U.S. President Trump revealed on his Truth Social platform that Washington plans to collaborate with Pakistan on its oil reserves. He wrote: “We 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.” He mentioned the U.S. is still choosing an oil company to lead the project.

Trump also added that Pakistan may eventually sell its oil to India. However, Pakistan did not confirm details of this proposal.

Pakistan’s Foreign Minister Ishaq Dar simply said “Deal concluded,” without offering further clarity.

Why Pakistan Needed This Trade and Oil Boost

Pakistan has long struggled with trade restrictions and slow economic growth. In April, the U.S. flagged a 29% tariff on Pakistani goods. That was later postponed for 90 days to allow negotiations. Facing this economic threat, Islamabad sought a broader deal rather than a narrow tariff fix.

Washington considers Pakistan a major non-NATO ally amid global competition with China. Improving economic ties through trade and investment aligns with U.S. strategic interests in Asia.

Future Outlook and Anticipated Announcements

Though initial announcements are clear, both governments have yet to release full details. Pakistan’s finance minister visited Washington to finalize technical terms. Pakistani officials expect discussions to cover reciprocal tariff rates, infrastructure investment, and energy sector cooperation.

Trump also mentioned talks with South Korea and other nations about tariff reductions under broader trade negotiations. A full report on these deals is expected soon.

For Pakistan, the combined tariff relief and oil development deal could mean more export income, foreign investment, and broader economic growth. Lower trade barriers help local industries, while exploring oil reserves can ease energy shortages.

For the U.S., the deal opens doors to strategic presence in a key South Asian partner. It strengthens ties in energy and trade at a time of shifting regional alliances in Asia.

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