US President Donald Trump introduced a recent settlement with Pakistan on Thursday with Washington pledging to assist the event of “huge oil reserves”. Trump additionally stated that Pakistan may promote oil to India sooner or later in a submit on Fact Social, his social media platform.
“We now have simply concluded a Take care of the Nation of Pakistan, whereby Pakistan and the US will work collectively on creating their huge Oil Reserves. We’re within the course of of selecting the Oil Firm that can lead this Partnership. Who is aware of, perhaps they’ll be promoting Oil to India some day!” Trump posted on Wednesday.
In response to the US Central Intelligence Company’s estimates, Pakistan has confirmed oil reserves of over 332 million barrels. This offers Islamabad the 52nd largest oil reserves on this planet, behind Turkey and forward of Trinidad and Tobago. India, with confirmed oil reserves of 4.5 billion barrels of oil, ranks twenty third on that very same record.
To this point, the US has remained a reasonably marginal participant in Pakistan’s financial system. In response to the State Financial institution of Pakistan, FDI flows into Pakistan from America got here as much as simply $29 million within the first quarter of FY2025. China, in contrast, accounted for a lot of the FDI flows into Pakistan with investments valued at $404 million in the identical quarter.
Trump’s announcement got here on the identical day that Pakistan and the US concluded a commerce deal.
Pakistan’s finance minister Muhammad Aurangzeb met with US Commerce Consultant Jamieson Greer and US Commerce Secretary Howard Lutnick in Washington on Wednesday.
Pakistan confronted a 29% tariff on exports to the US beginning on August 1 within the absence of a commerce deal. Nevertheless, Pakistan’s new tariff charge arrived at because of the settlement is as but unknown.
On Wednesday, Trump introduced that India will face a 25% tariff on all exports to America plus an unspecified extra penalty for buying Russian vitality, dealing a setback to negotiations simply days earlier than an August 1 deadline for added levies that New Delhi has been trying to stave off.
The transfer, which some US officers described as a negotiating tactic, may, if the tariffs final, put India at an obstacle when in comparison with Asian nations corresponding to Indonesia and Vietnam.
