Pakistan is exploring a plan to import 10% of its crude oil and petrol from the United States. This move aims to reduce tariff impacts, balance trade deficits, and support growing exports that recently reached $6 billion. Official sources from the Ministry of Energy reported on these developments.
The proposal comes after the US imposed a 29% tariff on Pakistan, alongside a 10% baseline tariff. Fortunately, the Trump administration has temporarily suspended these tariffs for 90 days, which opens doors for negotiations. The Pakistani government has consulted with refineries and oil marketing companies before finalizing this proposal.
Next, the Economic Coordination Committee (ECC) will review the proposal. Officials believe this initiative will help address the $3 billion trade deficit with the US. Though importing US oil will cost an additional $3 per barrel due to transportation, the impact on consumers is expected to be minimal, increasing costs by only 0.50 per liter.
In addition to oil, Pakistan is looking at importing other products like advanced machinery, soybean, steel, and iron from the US. To strengthen trade ties, the government plans to assure compliance with intellectual property rights and reduce non-tariff barriers. This effort aims to foster smoother trade relations and enhance Pakistan’s economic collaboration with the US.