US President Donald Trump speaks during a meeting with Filipino President Ferdinand Marcos Jr. in the Oval Office of the White House in Washington, DC on July 22, 2025. Photo: AFP
US President Donald Trump on Wednesday announced a new deal between the United States and Pakistan for the joint development of Pakistan’s oil reserves — a development likely to factor into ongoing trade discussions between the two countries.
In a post on his social media platform, Truth Social, President Trump stated: “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 US is in the process of selecting a company to lead the initiative. “Who knows, maybe they’ll be selling oil to India someday!” he remarked.
The announcement comes as part of a broader push by the US administration to secure new trade partnerships. “We are very busy in the White House today working on trade deals,” Trump wrote. “I have spoken to the leaders of many countries, all of whom want to make the United States ‘extremely happy’.”
He said several countries were now proposing tariff reductions. “All of this will help reduce our trade deficit in a very major way,” he claimed, promising that a full report would be released “at the appropriate time”.
The development follows Pakistan’s recent move to exempt foreign technology companies from a five per cent tax on digitally supplied goods and services — a measure widely viewed as a goodwill gesture toward Washington.
The Federal Board of Revenue formally notified the exemption on Wednesday, coinciding with Finance Minister Muhammad Aurangzeb’s visit to Washington, where he is engaged in talks to resolve outstanding issues hindering a broader trade agreement.
Earlier, Trump had announced that imports from India would now face a 25 per cent tariff. He also hinted at an unspecified “penalty” in response to India’s ongoing purchases of Russian arms and energy.
The new rate is slightly lower than the one proposed in April but is still higher than tariffs imposed on other Asian nations that have signed preliminary agreements with Washington.