PESHAWAR – The Pakistan US trade agreement has opened a new chapter in economic cooperation. Both countries agreed to extract Pakistan’s vast oil reserves and reduce tariffs on Pakistani exports to the United States.
US President Donald Trump confirmed the Pakistan US trade agreement on his social media platform Truth Social. He announced that Washington and Islamabad will work together to convert Pakistan’s oil deposits into recoverable reserves. “We are currently selecting the oil company that will lead this partnership,” Trump said. He added, “Who knows, maybe they’ll end up selling oil to India one day!”
Pakistan’s Deputy Prime Minister Ishaq Dar reshared the announcement on X, confirming the agreement. He said Pakistan and the United States have finalised a historic trade deal.
The Ministry of Finance also confirmed the Pakistan US trade agreement in an official statement. It stated that the deal will enhance bilateral trade, expand market access, attract American investment, and support joint work in key economic sectors. The ministry highlighted that US tariffs on Pakistani products will decrease under this agreement.
Economic cooperation in key sectors
Finance Minister Senator Muhammad Aurangzeb led the negotiations. He met with US Secretary of Commerce Howard Lutnick and US Trade Representative Jamieson Greer. The Finance Ministry said both sides agreed to collaborate in areas such as energy, minerals, information technology, and cryptocurrency.
In a video message, Aurangzeb said the agreement will benefit both nations. He explained that talks focused on non-tariff barriers and reducing trade imbalances. “Trade and investment must go hand in hand,” he said. He called the deal a major step toward broader economic and strategic cooperation.
Aurangzeb also praised Pakistan’s private sector. “When we discussed the trade imbalance, the private sector came forward with real support,” he added.
Trump’s announcement came just as the US prepared to impose additional tariffs on several countries starting Friday. In this context, Pakistani leaders have made several visits to the United States. Deputy Prime Minister Ishaq Dar visited from 21 to 28 July. Finance Minister Aurangzeb is currently on an official visit.
The Finance Ministry expects the Pakistan US trade agreement to bring more American investment into Pakistan’s infrastructure and development projects. Officials believe this will strengthen Pakistan’s role in global trade and support long-term economic growth.
