Pakistan US Trade Deal 2025 set to boost exports, energy cooperation, and growth. US investment returns after decades, opening new opportunities for Pakistan’s economy.
Stable Economic Start to FY2026
According to the Monthly Economic Update and Outlook, Pakistan’s economy began FY2026 with stable macroeconomic indicators, stronger fiscal position, and better external accounts. Large-Scale Manufacturing (LSM) has shown steady recovery since April 2025, with major improvements in automotive and fertilizer production.
Government Reforms
The report highlighted that investment-friendly measures, private sector reforms, lower inflation, and a supportive monetary policy are boosting business confidence. A favorable global environment and rising demand from trading partners will further reinforce Pakistan’s economic prospects.
Trade Deal with the US to Strengthen Exports
The trade agreement with the United States is expected to play a vital role in boosting Pakistan’s exports, while workers’ remittances will help offset the import bill caused by tariff adjustments. Officials noted that this partnership signals stronger ties and new market opportunities for Pakistan.
Also Read:Pakistan seeks Asian Development Bank’s support for reforms!
Trump’s Oil Partnership Announcement
On July 30, 2025, former US President Donald Trump announced via Truth Social a potential oil and energy partnership with Pakistan. He claimed that Pakistan has “massive oil reserves” and that the US will collaborate in exploration and development. While experts are cautious about the scale of reserves, the announcement has sparked interest in long-term US-Pakistan energy cooperation.
First Oil Imports from the US
As part of the deal, Pakistan’s largest refiner, Cnergyico, has finalized an agreement to import one million barrels of West Texas Intermediate (WTI) crude oil from Vitol. The shipment is expected in October 2025, marking a shift away from traditional Middle Eastern suppliers.
Tariff Talks and Strategic Shifts
The deal also comes after months of negotiations on US tariffs. Trump had earlier threatened a 29% tariff on Pakistani goods, but this was later reduced to 19%, making the trade environment more favorable for Pakistan. Experts say this, combined with new oil trade, will give Pakistan a stronger export edge.
Regional and Global Reactions
India’s media has shown skepticism regarding Pakistan’s oil potential, but analysts note that US investment in Pakistan’s energy and minerals sector for the first time since the 1970s is a major breakthrough. The deal also signals a deeper US economic interest in Pakistan, strengthening its global standing.
Future Outlook
With the Pakistan US Trade Deal 2025, Pakistan is looking at new opportunities in exports, energy, and investment flows. Experts believe this partnership will not only boost trade but also create jobs, improve energy security, and bring long-term economic benefits.
