In a breakthrough development, the United States and Pakistan have successfully concluded a significant trade agreement, resulting in a reduction of tariffs on Pakistani products in the US market, and joint development of Pakistan's "massive" oil reserves.
According to the 24NewsHD TV channel, the announcement came directly from US President Donald Trump through a post on his social media platform, Truth Social.
In his post uploaded late Wednesday, Trump once again took a swipe at India, stating that the US has reached a deal with Pakistan that will lead to the joint development of Pakistan’s vast oil reserves.
He revealed that the leadership is in the process of selecting a company to head this partnership. “Maybe one day, Pakistan will sell oil to India,” he added.
The newly signed agreement aims to promote bilateral trade, increase market access, attract foreign investment, and encourage cooperation in mutually beneficial sectors.
One of its major provisions includes a reduction in tariffs, especially on Pakistani goods exported to the United States, an outcome expected to enhance Pakistan’s global trade competitiveness.
Pakistan, US finalize trade agreement
Pakistan and the United States finalized a trade agreement aimed at boosting bilateral trade, expanding market access, attracting investment and fostering cooperation in areas of mutual interest.
The breakthrough was reached during a meeting between Finance Minister Senator Muhammad Aurangzeb with US Secretary of Commerce Howard Lutnick and United States Trade Representative Ambassador Jamieson Greer in Washington, DC. Also present were Pakistan’s Secretary of Commerce, Jawad Paul, and Ambassador to the US Rizwan Saeed Sheikh.
The agreement will result in reduction of reciprocal tariff especially on Pakistani exports to the United States.
This deal marks the beginning of a new era of economic collaboration especially in energy, mines and mineral, IT, cryptocurrency and other sectors.
The deal complements Pakistan’s existing efforts of broadening the scope of Pak-US economic ties and to include partnerships at the US states level.
The agreement enhances Pakistan’s access to the US market and vice versa.
Additionally, the deal is expected to spur increased US investment in Pakistan’s infrastructure and development projects.
This trade agreement underscores the commitment of both nations to deepen their bilateral relationship and explore all avenues for strengthening trade and investment ties.
Both countries view this agreement as a reflection of their leadership’s commitment to deepening ties, enhancing economic cooperation, and mobilising efforts to solidify trade and investment relations.
We are very busy in the White House today working on Trade Deals. I have spoken to the Leaders of many Countries, all of whom want to make the United States “extremely happy.” I will be meeting with the South Korean Trade Delegation this afternoon. South Korea is right now at a…
— Commentary Donald J. Trump Truth Social Posts On X (@TrumpTruthOnX) July 30, 2025
Additional details on that Pakistan agreement were not immediately available, but Trump said his administration is "very busy in the White House today working on Trade Deals," including a planned meeting with South Korea's representatives at the White House Wednesday.
"I have spoken to the Leaders of many Countries, all of whom want to make the United States 'extremely happy.' I will be meeting with the South Korean Trade Delegation this afternoon. South Korea is right now at a 25% Tariff, but they have an offer to buy down those Tariffs. I will be interested in hearing what that offer is," he said.
"Other countries are making offers for a Tariff reduction. All of this will help reduce our Trade Deficit in a very major way. A full report will be released at the appropriate time," he said.
Trump has imposed an August 1 deadline for dozens of nations to strike trade deals with the US or face tariffs heightened well above the 10% baseline he has already rolled out. China was separately given until Aug. 12 to deal an agreement, and Trump on Wednesday sounded an optimistic note that a deal will be reached.
"We're doing fine with China. I think it's going to work out very well. I think we're going to have a very fair deal with China," he said.
Pakistani Foreign Minister Ishaq Dar also confirmed the deal's conclusion on social media, without elaborating further.
Pakistan concludes deal with USA, AlhamdoLilah. pic.twitter.com/N3CXyQdIXd
— Ishaq Dar (@MIshaqDar50) July 31, 2025
Trump did not mention any agreement on tariffs. But Pakistan's finance ministry said on Thursday the trade deal "will result in reduction of reciprocal tariffs especially on Pakistani exports to the United States", but did not give details of what the tariffs would be.
"This deal marks the beginning of a new era of economic collaboration especially in energy, mines and minerals, IT, cryptocurrency and other sectors," it said.
It’s a win-win trade deal
Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb on Thursday termed the trade deal finalized by Pakistan and the US a “win-win” achievement for both countries.
In a video message released by the Ministry of Finance, Aurangzeb said “Today marks the culmination of the journey that we started a few months back.”
The minister shared that the authorities on both sides had “a very constructive final round of discussions, which then led to finalising the trade deal.”
“From our perspective, we were always going beyond the trade imperative,” said Aurangzeb, adding that trade and investments “have to go hand in hand”.
The minister lauded his economic team, including the role of the private sector, in reaching the trade deal. He shared that investments in various sectors were discussed. “We will start with energy. Then there is mineral and mining, IT, and the new economy that we are talking about.”
“We are in a good place today in Pakistan, in terms of where we have arrived before August 1. We have come a long way in terms of our overall strategic partnership between Pakistan and the United States,” he said.
Imagine a U.S.-Pakistan partnership redefined. Foreign Minister Muhammad Aurangzeb is paving the way for a new era, emphasizing that our relationship will thrive on investment, trade, and business, not just strategic alignment. Most importantly these discussions also includes… pic.twitter.com/XRpoj2LIYZ
— Kamran Khan (@AajKamranKhan) July 31, 2025
Pakistan faced a potential 29% tariff on exports to the United States under tariffs announced by Washington in April on countries around the world. Tariffs were subsequently suspended for 90 days so negotiations could take place.
Last week, Ishaq Dar said the US and Pakistan were “very close” to a trade deal that could come within days, after he met with Secretary of State Marco Rubio on Friday.
Dar and Rubio had discussed expanding trade and ties in critical minerals and mining, both sides said after that meeting. Other Pakistani officials have also visited the US in recent weeks for talks.
US total goods trade with Pakistan was an estimated $7.3 billion in 2024, according to the website of the office of the US trade representative, up from around $6.9 billion in 2023. The US goods trade deficit with Pakistan was $3 billion in 2024, a 5.2% increase over 2023.
Reporter: Waqas Azim