editor
United States President Donald Trump announced late Wednesday a new partnership with Pakistan, aimed at developing the country’s untapped oil reserves.
The deal, revealed via Trump’s Truth Social platform, involves direct U.S. support in exploring and expanding Pakistan’s petroleum sector. Trump described the agreement as a step toward “unlocking Pakistan’s massive oil potential,” adding that the initiative will bring benefits to both economies.
“We have just concluded a deal with Pakistan. The U.S. will help develop their massive oil reserves,” the former president posted online.
According to officials in Islamabad, the agreement includes provisions for energy cooperation, lower trade tariffs, and support for technological exchange. Sources within Pakistan’s Ministry of Energy say the country stands to benefit from both economic stimulus and access to modern drilling infrastructure.
The announcement comes as Pakistan continues to struggle with an ongoing economic crisis, high inflation, and currency depreciation. For Pakistan, the deal presents an opportunity to stimulate domestic oil exploration, particularly in energy-rich regions like Sindh, Balochistan, and the Potwar Plateau.
The Pakistani government praised the deal, stating that it would also prevent a previously discussed 29% hike in U.S. tariffs on textile and agricultural exports. With exports to the U.S. valued at nearly $7 billion annually, avoiding new trade barriers is seen as a major victory for Islamabad’s economic planners.
Prime Minister Shehbaz Sharif called the agreement “a new beginning” in bilateral relations and highlighted the potential for expanded cooperation in areas such as critical minerals, information technology, cryptocurrency, and transport infrastructure.
For the U.S., the move reflects broader strategic goals to counterbalance Chinese investment in Pakistan through the China–Pakistan Economic Corridor (CPEC) and reassert American influence in South Asia.
Also Read; African and Caribbean Leaders Seek Stronger Trade Partnership
Analysts say the agreement may also be part of a recalibrated approach following new tariffs imposed by the Trump administration on Indian imports. While the U.S. maintains close ties with India, the warming of relations with Pakistan signals a potential strategic shift.
There is also speculation that as Pakistan boosts its domestic oil production, it could one day emerge as an energy supplier to regional markets, including India, Afghanistan, and Central Asia.
While the full details of the pact are yet to be released, experts suggest this could mark a transformative moment in Pakistan–U.S. relations, shifting them from a focus on security cooperation to long-term economic partnership.
Whether this oil-focused collaboration will deliver tangible results or remain symbolic will depend on implementation, investment follow-through, and how both nations navigate their broader geopolitical commitments.
