Pakistan Prime Minister Hails ‘Historic’ US Trade Deal As Trump Adds Oil Projects To Tariff Agreement

Pakistan’s Prime Minister Shehbaz Sharif thanked U.S. President Donald Trump on Thursday for a ‘historic’ trade deal, after the two sides negotiated an agreement which also includes the development of oil projects in the South Asian country.

“I wish to convey my profound thanks to President Trump for his leadership role in finalization of the historic U.S.-Pakistan trade agreement,” Sharif wrote on X. “This landmark deal will enhance our growing cooperation so as to expand the frontiers of our enduring partnership in days to come.”

According to Pakistan’s financial ministry, the agreements involve a reduction of reciprocal tariffs, especially on Pakistan’s exports. The two sides did not provide details on the agreed tariff rates.

“This deal marks the beginning of a new era of economic collaboration, especially in energy, mines and minerals, IT, cryptocurrency, and other sectors,” the ministry said in a statement.

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The agreement with Pakistan comes amid a worldwide rush to sign trade agreements with the U.S. ahead of an Aug. 1 deadline. The U.S. also agreed to a trade deal with South Korea, under which Seoul agreed to 15% levies on its exports to the U.S. and pledged billions of dollars worth of investments to Washington, D.C.

Trump had said earlier on Wednesday that, under the trade deal, Pakistan and the U.S. will jointly develop oil projects, and the two sides are in the process of selecting an oil company to lead the partnership.

In 2024, the South Asian nation's exports to the U.S. exceeded $5 billion, while its imports from the U.S. were about $2.1 billion. However, Washington has yet to agree to a trade deal with Islamabad’s regional rival, India, and has pledged to impose 25% tariffs on the country’s goods, as well as penalties for buying Russian oil.

Also See: ‘Oh, Canada’ — Trump Says Palestinian Recognition Makes Trade Deal ‘Very Hard’

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