Key points
- Deal comes following Pakistani officials’ recent visits to Washington
- Deal reached on tariffs: Pakistan’s finance ministry
- An oil company will be chosen to build partnership: Trump
ISLAMABAD: The US and Pakistan have struck a deal that will result in lower tariffs for the South Asian nation as well as an agreement in which Washington will help develop Islamabad’s oil reserves, the two sides said.
In a post on his social media platform, Truth Social, President Trump stated: “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 added that the US is in the process of selecting a company to lead the initiative. “Who knows, maybe they’ll be selling oil to India someday!” he remarked.
“We are in the process of choosing the Oil Company that will lead this Partnership.”
Trump’s social media post did not provide further details.
US total goods trade with Pakistan was an estimated $7.3 billion in 2024, according to Reuters.
Pakistani Foreign Minister Ishaq Dar also confirmed the deal’s conclusion on social media.
Pakistan concludes deal with USA, AlhamdoLilah. pic.twitter.com/N3CXyQdIXd
— Ishaq Dar (@MIshaqDar50) July 31, 2025
Pakistan’s finance ministry said on Thursday the trade deal “will result in reduction of reciprocal tariffs, especially on Pakistani exports to the United States”, but did not give details of what the tariffs would be.
“New era of economic collaboration”
“This deal marks the beginning of a new era of economic collaboration especially in energy, mines and minerals, IT, cryptocurrency and other sectors,” it said.
Separately, Trump imposed 25 per cent tariffs on imports from India and announced an unspecified “penalty” over New Delhi’s purchases of Russian weapons and energy.
He also signed an executive order to escalate tariffs on Brazilian exports by 50 per cent, according to TRT Global.
