Shehbaz Sharif reacts after Trump seals oil deal with Pakistan
What's the story
Pakistan's Prime Minister Shehbaz Sharif has thanked United States President Donald Trump for his "leadership role" in finalizing a historic trade agreement between the two countries. The deal, which was announced in Washington on July 31, is aimed at boosting bilateral trade and cooperation. "This landmark deal will enhance our growing cooperation so as to expand the frontiers of our enduring partnership in days to come," Sharif said on social media platform X (formerly Twitter).
Oil development
Deal to develop Pakistan's untapped oil reserves
The trade deal will include a focus on developing Pakistan's "massive oil reserves," which have remained untapped due to a lack of technical expertise and funds. Currently, Pakistan imports oil from the Middle East to meet its energy needs. Trump announced this partnership on Truth Social, saying they are in the process of selecting an oil company to lead the project. "Who knows, maybe they'll be selling oil to India someday!" he added.
Economic collaboration
Trade agreement to reduce reciprocal tariffs
The trade agreement is expected to reduce reciprocal tariffs, especially on Pakistani exports to the US. It also seeks to increase market access, attract investment, and promote cooperation in areas of mutual interest. The deal is likely to lead to more US investments in Pakistan's infrastructure and development projects. "This deal marks the beginning of a new era of economic collaboration especially in energy, mines and minerals, IT, cryptocurrency and other sectors," an official statement said.
Regional dynamics
Trade deal comes after Trump penalizes India
The trade deal with Pakistan was announced around the same time Trump imposed a 25% tariff on all goods from India. He had also announced an additional penalty for purchases of Russian military equipment and energy. Trump had slammed India's trade policies as "most strenuous and obnoxious," calling India's tariffs "one of the highest tariffs in the world."