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”.
Read More: Pakistan removes hurdle in trade deal with US
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.
Last week, Foreign Minister Ishaq Dar said the United States and Pakistan were “very close” to a trade deal that could come within days, after he met with Secretary of State Marco Rubio on Friday.
Under Trump, Washington has attempted to renegotiate trade agreements with many countries that he threatened with tariffs over what he calls unfair trade relations.
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.
Trump has set out to upend the global economy by trying to leverage US economic power to squeeze trading partners with tariffs and force foreign companies to move to the United States.
Also Read: Trump says US to impose 25% tariff on India from Aug 1
He has already announced deal outlines with five countries — Britain, Vietnam, Japan, Indonesia and the Philippines — as well as the one with the 27-nation EU.
US and Chinese officials held talks this week in Stockholm on extending a trade truce that has temporarily lowered tariffs from soaring triple-digits.
While no deal was announced at the meetings, both sides are eyeing an extension ahead of the August 12 deadline.
Meanwhile, Trump announced 50 per cent tariffs on Brazil — in part to pressure the South American ally to shut down the trial of far-right former president Jair Bolsonaro on coup charges.
