New Delhi: US President Donald Trump has announced the conclusion of a trade agreement with Pakistan, which includes plans for a joint effort to develop what he called the South Asian nation’s “massive oil reserves” — a claim that has raised eyebrows given the lack of proven large-scale oil finds in Pakistan to date.
In a post on his social media platform Truth Social on Wednesday, 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. 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 some day!”
The exact reserves Trump was referring to remain unclear. Pakistan has previously claimed potential oil reserves along its coastline but has made little progress in proving or extracting them. The country remains heavily reliant on oil imports from the Middle East to meet its energy needs.
Prime Minister Shehbaz Sharif responded to Trump’s announcement with enthusiasm, calling the trade agreement “historic” and expressing optimism for expanded bilateral ties.
“I wish to convey my profound thanks to President Trump @realDonaldTrump for his leadership role in finalization of the historic US-Pakistan trade agreement, successfully concluded by our two sides in Washington, last night,” Sharif posted on X (formerly Twitter). “This landmark deal will enhance our growing cooperation so as to expand the frontiers of our enduring partnership in days to come,” he added.
According to a Radio Pakistan report, the deal was finalised during a meeting between Pakistan’s Finance Minister Muhammad Aurangzeb, US Secretary of Commerce Howard Lutnick, and US Trade Representative Ambassador Jamieson Greer. The agreement aims to boost bilateral trade, expand market access, and attract investment in key sectors such as energy, mining, IT, cryptocurrency, and other areas of mutual interest.
“The agreement will result in a reduction of reciprocal tariffs especially on Pakistani exports to the United States. This deal marks the beginning of a new era of economic collaboration especially in energy, mines and minerals, IT, cryptocurrency and other sectors,” the report said.
Trump’s announcement on Pakistan came just hours after he unveiled new trade penalties on India. In another post on Truth Social, he said: “All things not good! India will therefore be paying a tariff of 25 percent, plus a penalty for the above, starting on August first.”
The penalty, he added, was in response to India’s purchase of Russian military equipment and energy, as well as what he described as unfair trade practices.
“India’s trade policies are most strenuous and obnoxious,” Trump wrote, criticising India’s tariffs and its membership in BRICS — the economic bloc that includes Brazil, Russia, India, China and South Africa — which he labelled “anti-US”.
In response, the Indian government issued a statement saying it had “taken note” of Trump’s remarks and was reviewing the implications. “India and the US have been engaged in negotiations on concluding a fair, balanced and mutually beneficial bilateral trade agreement over the last few months. We remain committed to that objective,” the official statement said.
Speaking to reporters, Trump confirmed that discussions with India were ongoing, “...We are going to see, we’re negotiating with India right now,” he said, while reiterating that India imposes “one of the highest tariffs in the world.”
Trump added that the administration was working on trade talks with other countries as well, “Likewise, other Countries are making offers for a Tariff reduction. All of this will help reduce our Trade Deficit in a very major way. A full report will be released at the appropriate time.” He said he would also be meeting with a South Korean trade delegation in the coming days.
