WASHINGTON: On Wednesday, former US President Donald Trump announced a landmark energy trade deal with Pakistan. The agreement marks the start of a major Pakistan Oil Deal. It is aimed at unlocking Pakistan’s untapped oil reserves.
Under the deal, the United States will work closely with Pakistan. Both countries will collaborate to explore and develop oil resources across the region. This strategic partnership highlights Pakistan’s growing role in South Asia’s energy sector.
“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,” Trump stated in a social media post. “We are in the process of choosing the Oil Company that will lead this Partnership.”
This high-stakes US-Pakistan energy partnership is expected to attract significant foreign investment, bolster Pakistan’s energy infrastructure, and reshape regional oil trade dynamics. As part of the Pakistan Oil Deal, American energy firms are being considered to lead exploration and drilling efforts, particularly in Balochistan, Sindh, and Khyber Pakhtunkhwa.
Donald Trump Confirms Pakistan Oil Deal
In a game-changing announcement on July 30, 2025, former US President Donald Trump revealed a new energy deal with Pakistan. The United States has finalized a high-stakes Pakistan Oil Deal. This agreement creates a strategic energy partnership between Washington and Islamabad.
The goal is to unlock and develop Pakistan’s vast untapped oil reserves. This deal marks a major shift in US trade and energy policy across South Asia.
“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,” Trump stated on social media.
This Pakistan Oil Deal positions Pakistan as a rising energy hub and a key US ally in the region’s energy landscape. The partnership is expected to drive foreign investment, boost oil exploration, and reshape regional energy diplomacy. Click for more info
Key Highlights of the US-Pakistan Oil Partnership
Strategic Oil Development Deal
- The deal focuses on developing conventional and shale oil reserves in Pakistan.
- US oil firms are likely to lead the exploration, drilling, and production phases.
Tariff Reductions & Trade Leverage
- As part of the agreement, US may reduce tariffs on Pakistani exports.
- At the same time, the US imposed 25% tariffs on Indian imports, a move that appears to shift economic favor toward Pakistan..
Potential Sites for Oil Exploration
- Experts believe that Balochistan, Sindh, and Khyber Pakhtunkhwa hold large untapped oil reserves.
- According to estimates, Pakistan holds 234–353 million barrels of recoverable conventional oil and up to 9.1 billion barrels of technically recoverable shale oil
Geopolitical Implications of the Deal
This agreement sends a strong message in the region.The US is now aligning economically with Pakistan. As a result, India may face stronger energy competition. This will be especially true if Pakistan starts exporting oil in the coming years
Trump even hinted at this in his statement:
“Maybe they’ll be selling Oil to India someday!”
This move could realign South Asia’s energy dynamics, reduce Pakistan’s reliance on Gulf states, and open the door to massive foreign direct investment (FDI)
Economic Impact on Pakistan
Boost in Investment & Revenue
- Pakistan can attract multi-billion-dollar investments from US oil giants.
- The deal can enhance job creation, infrastructure, and technological exchange.
Transparency & Regulation Required
- Experts emphasize the need for regulatory frameworks and transparent revenue management to avoid resource mismanagement.
The Pakistan Oil Deal represents more than just a trade agreement — it marks the beginning of a transformative energy alliance between Pakistan and the United States. As both nations collaborate to unlock Pakistan’s hidden oil potential, this deal could become a turning point for Pakistan’s economic growth, energy independence, and regional influence.
With strategic investments, advanced technology, and geopolitical cooperation, the Pakistan Oil Deal may soon emerge as a model for future global energy partnerships. All eyes are now on which oil company will lead the project and how this powerful alliance will reshape the energy map of South Asia. For more latest news click here
