Pakistan, United States successfully conclude landmark trade deal

July 31, 2025 (MLN): In a landmark development, Pakistan and the United States finalised a trade agreement today aimed at boosting bilateral trade, expanding market access, attracting investment, and fostering cooperation in areas of mutual interest.

The breakthrough was reached during a meeting in Washington, D.C., today, between Pakistan’s Finance Minister, Senator Muhammad Aurangzeb, and U.S. Secretary of Commerce Howard Lutnick, as well as United States Trade Representative Ambassador Jamieson Greer, said a press release issued by Finance Division today. 

Secretary Commerce Jawad Paul and Pak Ambassador to the United States Ambassador Rizwan Saeed Sheikh were also present during the meeting.

The agreement will result in reduction of reciprocal tariff especially on Pakistani exports to the United States.

This deal marks the beginning of a new era of economic collaboration especially in energy, mines and mineral, IT, cryptocurrency and other sectors, the statement further added. 

The deal complements Pakistan’s existing efforts of broadening the scope of Pak-U.S. economic ties and to include partnerships at the U.S. states level. The agreement enhances Pakistan’s access to the U.S. market and vice versa.

Additionally, the deal is expected to spur increased U.S. investment in Pakistan’s infrastructure and development projects.

This trade agreement underscores the commitment of both nations to deepen their bilateral relationship and explore all avenues for strengthening trade and investment ties.

President Trump also announced the trade deal via a post 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 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!," he added. 

Impact of this announcement: 

The announcement of U.S.-Pakistan collaboration on oil reserves development is likely to spark optimism among investors, especially in exploration and production (E&P) stocks like OGDC, PPL, and MARI.

U.S. involvement may attract additional foreign direct investment (FDI) into Pakistan’s energy sector, improving valuations and liquidity for listed oil firms.

 If a U.S. oil company leads the partnership, local firms could benefit from advanced drilling technologies and operational efficiencies.

The mention of potential oil exports to India could open regional trade routes, enhancing revenue streams for Pakistani producers.

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