Pakistan, U.S. Sign Historic Trade Deal to Develop Oil Reserves and Boost Economic Ties

Last Updated Jul - 31 - 2025, 03:42 PM | Source : Fela News

Prime Minister Shehbaz Sharif thanks President Trump for a landmark U.S.-Pakistan trade agreement focused on oil development, investment, and expanded market ac

On July 31, 2025, Pakistan’s Prime Minister Shehbaz Sharif expressed gratitude to U.S. President Donald Trump for a “historic” trade agreement between Islamabad and Washington, calling it a major step forward in bilateral relations. The deal, announced by Trump a day earlier, includes plans for the U.S. and Pakistan to jointly develop Pakistan’s untapped oil reserves.

Though Pakistan has long claimed substantial oil deposits along its coastline, these reserves remain undeveloped, and the country currently relies on oil imports from the Middle East. In a social media post, Sharif thanked President Trump for his leadership in finalizing the agreement and said it would strengthen the long-term partnership between the two countries.

According to state broadcaster Radio Pakistan, the agreement was finalized during a meeting in Washington, D.C., between Pakistan’s Finance Minister Muhammad Aurangzeb, U.S. Secretary of Commerce Howard Lutnick, and U.S. Trade Representative Ambassador Jamieson Greer.

In a post on Truth Social, President Trump said, *“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, *“We are in the process of choosing the Oil Company that will lead this Partnership. Who knows, maybe they’ll be selling Oil to India someday!”*

The trade agreement aims to enhance bilateral trade, expand market access, and encourage investment, especially in energy, minerals, IT, and cryptocurrency. It includes tariff reductions, particularly benefiting Pakistani exports to the U.S.

The agreement also supports increased American investment in Pakistan’s infrastructure and development projects. Officials describe the deal as the beginning of a new era of economic collaboration, deepening mutual ties and fostering cooperation across multiple sectors.