PM Shehbaz Thanks Trump for ‘Historic’ US-Pakistan Trade Agreement
ISLAMABAD, July 31, 2025 — Prime Minister Shehbaz Sharif on Thursday expressed heartfelt gratitude to U.S. President Donald Trump for his leadership in finalizing a “historic” US-Pakistan trade agreement, calling it a landmark moment in bilateral ties.
Taking to X (formerly Twitter), PM Shehbaz wrote, “I wish to convey my profound thanks to President Trump for his leadership role in finalization of the historic US-Pakistan trade agreement, successfully concluded by our two sides in Washington, last night.”
The Prime Minister emphasized that this deal marks a new era of enhanced cooperation between Islamabad and Washington, stating that it would “expand the frontiers of an enduring partnership in the days to come.”
Trump Confirms Deal on Truth Social
Confirming the agreement, President announced on Truth Social: “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.” He added that the U.S. is in the process of selecting the oil company that will lead this strategic energy partnership.
In a lighter tone, Trump hinted at potential regional spillovers, saying, “Who knows, maybe they’ll be selling oil to India someday.”
READ MORE: Trump Criticizes India-Russia Trade Ties
The development is seen as a major diplomatic win for Pakistan, especially as Washington tightens trade ties with some countries and imposes sanctions or tariffs on others — most recently India, which is now facing a 25% tariff and penalty on U.S.-bound exports starting August 1.
Context: Trade Shift in South Asia
Trump’s overture to Pakistan comes just after he lashed out at India’s high tariffs and “obnoxious non-monetary trade barriers.” In a separate post, he remarked, “We have, over the years, done relatively little business with them (India)… India will therefore be paying a tariff of 25%, plus a penalty.”
This dramatic pivot by the U.S. has sent ripples across South Asian geopolitics, with Pakistan emerging as a renewed strategic trade partner in the region.
Strategic Oil Partnership to Drive Growth
The trade agreement is said to focus significantly on the exploration and development of Pakistan’s untapped oil reserves, which could help boost domestic energy production, reduce imports, and attract foreign investment. While details remain undisclosed, experts believe the deal includes technology transfer, U.S. capital inflow, and energy infrastructure development.
Economists are optimistic that this will have a positive impact on Pakistan’s economy, potentially creating thousands of jobs and enhancing energy security.
