WASHINGTON D.C. – The United States and Pakistan have reached a landmark trade agreement, announced this week, signalling close cooperation in developing Pakistan’s oil reserves and anticipated reductions in tariffs on Pakistani exports. U.S. officials confirmed that a U.S. oil company will be selected to lead the joint exploration partnership.
While the exact tariff rate was not revealed, Pakistani officials noted that the agreement aims to lower reciprocal duties between the two countries, enhancing trade across key sectors such as energy, mining, IT, and cryptocurrency. U.S. President Donald Trump emphasised that the deal marks a “new era of economic collaboration,” and hinted that Pakistan may one day export oil to India, intensifying regional trade dynamics.
Pakistan’s finance minister echoed that the agreement represents a “win-win” outcome and expressed optimism over deeper bilateral ties. Foreign Ministry representatives confirmed the deal’s conclusion but refrained from detailing the negotiations.
The agreement follows escalating trade tensions with India, where the U.S. has imposed a 25% tariff on Indian goods amid concerns over India’s energy and defense dealings with Russia. Analysts interpret the U.S.–Pakistan trade accord as a strategic step in recalibrating South Asian economic alliances.
This story has been reported by PakTribune. All rights reserved.