US President Donald Trump announced on Wednesday that his government has signed a deal with Pakistan to develop the nation’s oil reserves in collaboration. In a social media post, Trump 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 further said the screening process for the head oil company for the partnership has already begun.
Trump didn’t give any additional details, and there has been no reaction from the Pakistani embassy in Washington. The announcement comes amid increasing economic activity between the two countries. Last week, Pakistani Foreign Minister Ishaq Dar announced that a US-Pakistan trade deal was close to being finished after he met with US Secretary of State Marco Rubio. The two are said to have discussed how to increase cooperation in areas like critical minerals and mining.
Other Pakistani officials have also recently traveled to Washington to engage in talks with the purpose of increasing bilateral trade. The US has been vociferously renegotiating trade agreements with several nations under Trump, frequently using tariffs as leverage a strategy that has aroused argument among economists.
In 2024, trade between the US and Pakistan reached an estimated $7.3 billion, up from $6.9 billion in 2023. However, the US goods trade deficit with Pakistan grew to $3 billion, marking a 5.2% increase from the previous year.
Washington’s increasing involvement in Pakistan also corresponds with its general approach to fostering stronger relations with Asian nations as a counter to China’s increasing footprint. Pakistan is still a vital partner, as declared by the US to be a “major non-NATO ally.”
Meanwhile, Trump asserted that talks with India continue despite announcing a 25% tariff on Indian imports from Friday. The step comes during increased tensions between India and Pakistan after a terror attack in Indian-held Kashmir in April, which New Delhi attributed to Islamabad. In response, India carried out air strikes on May 7, followed by a sudden exchange of hostilities before a ceasefire was established on May 10.
Trump has asserted that American diplomacy was instrumental in negotiating the ceasefire, although India has protested this, insisting that issues of this nature need to be handled bilaterally without interference from other parties.
