• Pakistan and the US have finalized a significant trade deal focusing on oil reserve development and tariff reductions.
• Pakistan's largest refiner, Cnergyico, is set to import one million barrels of US crude oil.
• The agreement is expected to enhance bilateral economic ties and broaden market access.

The United States and Pakistan have recently concluded a landmark trade agreement, signaling a major economic collaboration aimed at developing Pakistan's massive oil reserves and lowering export tariffs. US President Donald Trump announced on social media that this partnership marks a new phase in the countries' relationship, specifically mentioning the selection of an oil company to spearhead these developments. "We are in the process of choosing the Oil Company that will lead this Partnership," Trump stated, hinting at future collaborations, including oil sales to India trtglobal and Reuters.

Finance Minister Muhammad Aurangzeb, currently in Washington, confirmed that the deal includes a significant reduction in tariffs, aiming to enhance Pakistan’s exports to the US. Although specific tariff rates were not reported by Trump, diplomatic channels indicate that rates will be reduced to between 15% and 20% on Pakistani goods, contrasting the 25% tariff imposed on India Dawn and India Times.

In a notable move, Cnergyico, Pakistan’s largest oil refiner, is set to import one million barrels of US crude oil, marking the first-ever purchase of US oil following this trade deal. The shipment, consisting of West Texas Intermediate light crude, is scheduled to depart from Houston and arrive in Karachi in October, according to Vice Chairman Usama Qureshi Dawn and trtglobal.

Experts have expressed optimism regarding this collaboration, viewing it as a potential catalyst to tap into Pakistan’s untapped energy resources. Although Pakistani reserves are currently limited, estimates suggest substantial potential for discovery, especially in offshore regions Dawn and India Times.

While the agreement represents a significant shift in US-Pakistan economic relations, analysts note challenges remain in implementing effective oil exploration, including political stability and infrastructure investment. The history of Pakistan's oil reserves shows mixed results, with previous efforts to exploit these resources often hampered by various systemic issues India Times and Dawn.