In a major diplomatic achievement, Pakistan has secured a landmark US-Pakistan trade deal under the leadership of Finance Minister Muhammad Aurangzeb. This development marks a significant step in the growing economic partnership between Islamabad and Washington. The announcement was confirmed by former US President Donald Trump, who emphasized that the two nations had agreed to collaborate on developing Pakistan’s extensive oil reserves.
Trump shared the news on social media, stating, “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 that a US oil company would soon be selected to spearhead the partnership.
The breakthrough comes at a time when India is under pressure due to rising US tariffs and its continued energy engagement with Russia. As New Delhi scrambles to avoid penalties, Islamabad is moving confidently forward, capitalizing on a diplomatic and economic opening.
According to Pakistan’s Ministry of Finance, the US-Pakistan trade deal was finalized during Aurangzeb’s meeting with the US Secretary of Commerce and Trade Representative. Pakistan’s Ambassador to the US Rizwan Saeed Sheikh and Commerce Secretary Jawad Paul also attended the session. The aim of the deal is clear: to enhance trade, attract US investment, and improve market access, particularly for Pakistani goods.
Under the new agreement, Washington will reduce tariffs on key Pakistani exports. The focus areas include energy, minerals, cryptocurrency, IT, and emerging technologies. The pact will not only strengthen bilateral economic ties but also provide a much-needed boost to Pakistan’s development initiatives.
Aurangzeb described the discussions as productive. He noted that both nations had reached a consensus to proceed with trade and investment together. “This US-Pakistan trade deal is part of a broader strategic alignment,” he said. The minister praised the private sector’s involvement in negotiations and highlighted efforts to reduce the trade deficit.
US-Pakistan trade volume reached $7.3 billion in 2024, a jump from $6.9 billion in 2023. The US had a trade deficit of $3 billion with Pakistan in 2024 — a 5.2% increase. This data underlines Pakistan’s growing importance as a trading partner and highlights the urgency of formalized economic collaboration.
Deputy Prime Minister Ishaq Dar later confirmed the breakthrough with a simple post on X: “Pakistan concludes deal with USA, AlhamdoLilah.” He had previously said that the two countries were close to finalizing a trade pact, especially after meetings with US Secretary of State Marco Rubio.
According to both the US State Department and Pakistan’s Foreign Ministry, the agreement also covers cooperation in critical minerals and mining. Dar acknowledged the Prime Minister’s office for forming a committee that helped polish the final draft of the trade deal.
In contrast, the United States has announced a 25% tariff on Indian imports. The penalties could affect India’s exports, especially in sectors like footwear, textiles, and furniture. Trump indicated the tariff was not only about trade but also about India’s ties with Russia and its participation in BRICS — a bloc he described as anti-American.
This US-Pakistan trade deal carries regional significance. While India faces trade setbacks and strategic uncertainty, Pakistan is strengthening its ties with Washington. The agreement serves as a signal that Islamabad is a more cooperative and open partner in the current geopolitical landscape.
The development also adds weight to Trump’s earlier claims about facilitating a ceasefire between India and Pakistan. Though disputed by India, Trump insists his mediation and trade pressure helped reduce tensions following the deadly April 22 attack in IIOJK and India’s retaliatory strikes on May 7.
As the US repositions its strategic priorities in South Asia, this US-Pakistan trade deal could mark the beginning of a new economic chapter — one driven by energy collaboration, digital infrastructure, and investment in critical sectors.
