WASHINGTON, Jul 31 (APP) : Pakistan and the United States on Wednesday finalized a trade agreement that will result in lower tariffs for the South Asian country as well as an agreement in which Washington will help develop Pakistan’s oil reserves, according to the two sides.
The breakthrough came during a meeting of Pakistan’s Finance Minister, Senator Muhammad Aurangzeb, with U.S. Secretary of Commerce Howard Lutnick and U.S. Trade Representative Ambassador Jamieson Greer in Washington. Secretary of Commerce Jawad Paul and Pakistan’s Ambassador to the United States, Ambassador Rizwan Saeed Sheikh, were also present.
The landmark deal was announced by President Donald Trump in a post on Truth Social.
“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,” the U.S. leader wrote.
“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.
Pakistani Deputy Prime Minister and Foreign Minister Ishaq Dar also confirmed the deal’s conclusion on social media, without elaborating further.
Trump did not mention any agreement on tariffs. But a Pakistan embassy press release said that 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,” it said.
The deal complements Pakistan’s existing efforts of broadening the scope of Pak-U.S. economic ties and to include partnerships at the U.S. states level. The agreement enhances Pakistan’s access to the U.S. market and vice versa.
Additionally, the deal is expected to spur increased U.S. investment in Pakistan’s infrastructure and development projects.
This trade agreement underscores the commitment of both nations to deepen their bilateral relationship and explore all avenues for strengthening trade and investment ties, the embassy press release added.
Pakistan faced a potential 29% tariff on exports to the United States under tariffs announced by Washington in April on countries around the world. Tariffs were subsequently suspended for 90 days so negotiations could take place.
Last week, Dar said the U.S. and Pakistan were “very close” to a trade deal that could come within days, after he met with Secretary of State Marco Rubio on Friday.
Dar and Rubio had discussed expanding trade and ties in critical minerals and mining, both sides said after that meeting. Other Pakistani officials have also visited the U.S. in recent weeks for talks.
Under Trump, Washington has attempted to renegotiate trade agreements with many countries that he threatened with tariffs over what he calls unfair trade relations.
U.S. total goods trade with Pakistan was an estimated $7.3 billion in 2024, according to the website of the office of the U.S. trade representative, up from around $6.9 billion in 2023. The U.S. goods trade deficit with Pakistan was $3 billion in 2024, a 5.2% increase over 2023.
Trump also said Washington was still negotiating with India on trade after announcing earlier in the day that the U.S. will impose a 25% tariff on goods imported from India starting on Friday.
Pakistan has also recently said it “appreciated the pivotal role” by Trump and Rubio “in de-escalating tensions between Pakistan and India by facilitating a ceasefire.”
Trump has repeatedly taken credit for the India-Pakistan ceasefire he announced on social media on May 10 after Washington held talks with both sides. India disputes Trump’s claims that the ceasefire resulted from his intervention and trade threats.
India insists that New Delhi and Islamabad must resolve problems directly with no outside involvement.
The latest escalation in India-Pakistan ties was triggered by an April 22 attack in India-occupied Kashmir that India blamed on Pakistan. Islamabad denied responsibility. India attacked Pakistan on May 7 and the two nations exchanged deadly hostilities until the ceasefire was declared on May 10. India lost six war aircraft, including Rafales, during the four-day conflict.