(MENAFN) The United States and Pakistan have reached an agreement in which the US will assist Pakistan in developing its vast oil reserves, US President Donald Trump announced on Wednesday. Trump shared the news on his social media platform, Truth Social, shortly after announcing 25% tariffs on India due to its trade and defense ties with Russia.

“We have just concluded a deal with Pakistan, where both countries will collaborate on developing their massive oil reserves,” Trump stated. He added that the US is in the process of selecting the oil company to lead the partnership, hinting that Pakistan might one day sell oil to India.

Pakistani Prime Minister Shehbaz Sharif confirmed that a trade deal was also finalized, expressing gratitude to Trump for his leadership in finalizing the historic agreement during talks in Washington. However, Sharif did not disclose further details of the trade deal.

Earlier in the year, Trump had proposed ‘Liberation Day’ tariffs on several countries, including a 29% tariff on Pakistani exports to the US, though these tariffs were postponed until the end of July.

Recent discussions between Pakistani officials and US representatives, including a meeting between Pakistan’s Foreign Minister Ishaq Dar and US Secretary of State Marco Rubio, indicated that the two countries were close to a trade agreement. Talks also covered expanding cooperation in critical minerals and mining sectors. In 2024, total trade between the US and Pakistan was estimated at $7.3 billion.

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