A significant trade agreement was finalized between Pakistan and the United States on Thursday, with U.S. President Donald Trump announcing that a large-scale oil extraction project is also part of the deal.
According to a statement issued by Pakistan’s Ministry of Finance, the historic agreement between the two countries has been successfully concluded. President Trump shared on his social media platform, Truth Social, that both nations will work together on discovering and extracting large oil reserves.
Negotiations for the trade agreement had been ongoing for the past several months. Pakistan’s Finance Minister Muhammad Aurangzeb arrived in Washington this week to conduct the final round of talks.
To finalize the deal, officials from both sides engaged in direct negotiations as well as multiple rounds of virtual meetings.
Confirming the agreement, Pakistan’s Ministry of Finance stated that it marks the beginning of a new chapter in economic cooperation. The statement read, “In a major development, Pakistan and the United States have finalized a trade agreement aimed at enhancing bilateral trade, expanding market access, attracting investment, and promoting cooperation in areas of mutual interest.”
However, neither side disclosed the specific tariff rates that would apply to imported goods under the deal.
In his message, President Trump referred to trade deals with other countries and noted that the agreement with Pakistan had just been completed. He wrote, “We have just finalized a deal with Pakistan.”
President Trump added, “Pakistan and the U.S. will work together to expand large oil reserves. We are now looking for a company to lead this partnership.”
In a humorous tone, he mentioned India, saying, “Who knows, maybe one day they (Pakistan) will end up selling oil to India.”
Earlier, on Wednesday, July 30, President Trump announced a 25% import tariff on goods from India starting August 1 and also declared penalties for India’s continued oil imports from Russia.
In his Truth Social post, Trump stated, “India is our friend, but they impose the highest tariffs on U.S. products in the world.”
Pakistan’s Finance Minister Muhammad Aurangzeb described the trade deal with the U.S. as a “win-win” for both nations and termed it a major strategic success in a video message.
Although the Ministry of Finance did not elaborate much on the oil project in its official statement, it reiterated that the agreement aims to boost bilateral trade, enhance market access, attract investment, and promote cooperation in various sectors.
According to the Ministry, the agreement was finalized in Washington, D.C. during a meeting between Finance Minister Senator Muhammad Aurangzeb, U.S. Secretary of Commerce Howard Litnick, and U.S. Trade Representative Jamie Son Greer.
The statement added that the agreement opens a new chapter in economic collaboration, particularly in sectors such as mines and minerals, IT, cryptocurrency, and especially energy.
Prime Minister Shehbaz Sharif thanked President Donald Trump for his leadership in a statement on X (formerly Twitter). He said, “I thank President Trump for his leadership regarding the U.S.-Pakistan trade agreement finalized last night in Washington.”
He added, “This important agreement will strengthen our growing ties and help us expand the boundaries of our partnership in the coming days.”
