Pakistan and the United States have finalized a significant trade agreement aimed at boosting bilateral commerce and investment. The deal was announced on Wednesday night, following high-level meetings in Washington. While tariff details remain undisclosed, both sides confirmed plans to reduce trade barriers. Finance Minister Muhammad Aurangzeb led the Pakistani delegation, which included top officials. Talks focused on market access, investment, and energy cooperation.
US President Donald Trump announced the agreement on his social media platform, Truth Social, on Thursday morning. He highlighted a joint plan to develop Pakistan’s oil reserves. Trump said they were selecting an oil company to lead the project. He also hinted that Pakistan may someday supply oil to India. The announcement came just days after Trump imposed new tariffs on Indian goods.
In a landmark development, Pakistan and the United States finalized 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 of… pic.twitter.com/1R3hC95Ry5
— Pakistan Embassy US (@PakinUSA) July 31, 2025
According to Pakistan’s embassy in Washington, the agreement opens new opportunities across multiple sectors. These include energy, minerals, information technology, and cryptocurrency. The embassy added that the deal would improve market access for Pakistani exports. It also supports partnerships with US states, expanding regional economic cooperation.
During the signing, Aurangzeb met with US Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer. Pakistan’s Commerce Secretary Jawad Paul and Ambassador Rizwan Saeed Sheikh also attended. The embassy said the deal would likely attract more US investment into Pakistan’s infrastructure and development projects. Officials described it as the start of a new era in bilateral ties.
Prime Minister Shehbaz Sharif thanked Trump for his “leadership role” in finalizing the deal. He called it a historic step that would strengthen long-term cooperation.
I wish to convey my profound thanks to President Trump @realDonaldTrump for his leadership role in finalization of the historic US-Pakistan trade agreement, successfully concluded by our two sides in Washington, last night.
This landmark deal will enhance our growing cooperation…— Shehbaz Sharif (@CMShehbaz) July 31, 2025
Foreign Minister Ishaq Dar also confirmed the agreement early Thursday but gave no further details. Both sides hope the pact will deepen economic engagement and benefit their citizens.
Pakistan concludes deal with USA, AlhamdoLilah. pic.twitter.com/N3CXyQdIXd
— Ishaq Dar (@MIshaqDar50) July 31, 2025