US President Donald Trump announced that the United States has finalized a deal with Pakistan to jointly develop the country’s substantial oil reserves, marking a significant step in bilateral energy cooperation. Trump announced good news for Pakistan and bad news for India.
The announcement, made on Trump’s Truth Social account, did not clarify whether a parallel agreement on tariffs had been reached.
“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 wrote.
“We are in the process of choosing the Oil Company that will lead this Partnership. Who knows, maybe they’ll be selling Oil to India some day!”
This move represents the first major initiative to tap Pakistan’s long-claimed oil deposits along its coast.
Trump’s reference to India carried added weight, as Washington recently imposed a 25 per cent tariff on Indian imports, citing New Delhi’s purchase of Russian oil and military equipment. The US president added that other nations were now seeking tariff reductions to avoid similar penalties.
“Likewise, other Countries are making offers for a Tariff reduction. All of this will help reduce our Trade Deficit in a very major way,” Trump wrote, adding that a full report would be released later.
Trump also drew parallels with South Korea’s ongoing negotiations, suggesting that countries like Pakistan could similarly seek tariff relief.
Pakistan pushes for tariff deal
Finance Minister Mohammad Aurangzeb, currently in Washington for what officials describe as final-stage talks, began high-level meetings with US counterparts on Wednesday.
“We hope to sign a deal before the (Aug 1) deadline expires,” a senior Pakistani official said.
Foreign Minister Ishaq Dar echoed this sentiment at a recent Atlantic Council event in Washington, stating:
“We hope to conclude a mutually beneficial trade agreement… hopefully in days, not in weeks.”
Dar confirmed that a special committee had been formed to finalize terms, emphasizing that Pakistan is seeking tariff concessions in line with those granted to Japan, Indonesia, the Philippines, and Vietnam, where rates range from 15 to 20 per cent.
Punishment for India: Trump Announces good news for pakistan and bad news for india
The new deal with Pakistan comes as Trump intensifies tariff measures against India. In addition to the 25 per cent tariff, he announced an unspecified penalty for India’s continued reliance on Russian energy and military hardware, effective August 1.
“India will therefore be paying a tariff of 25pc, plus a penalty for the above,” Trump wrote, criticizing India’s high tariffs and what he called “obnoxious non-monetary trade barriers.”
Trump noted that negotiations with India were ongoing but warned no further extensions would be granted to countries missing the deadline.
The move marks the first potential use of “secondary tariffs,” penalties designed to replace traditional financial sanctions against nations engaging with embargoed countries, according to The New York Times.
The announcements triggered a 0.4 per cent drop in the Indian rupee in non-deliverable forward markets, while Gift Nifty futures slid 0.6 per cent.
US sanctions six Indian firms
Separately, the US State Department sanctioned six Indian companies for engaging in Iranian petroleum and petrochemical trade. These include:
- Kanchan Polymers (over $1.3m in Iranian imports)
- Alchemical Solutions ($84m)
- Ramniklal ($22m)
- Jupiter Dye Chem ($49m)
- Global Industrial ($51m, including methanol)
- Persistent Petrochem Private Limited ($14m)
Additional sanctions targeted Chinese and UAE-based companies as well as several oil tankers.
The Indian government, responding to Trump’s announcement, said it remained committed to finalizing a “fair, balanced and mutually beneficial” trade agreement with the US.
