Along with Pakistan, former US President Donald Trump has once again surprised the world politics and business world. The US and Pakistan are going to make “huge oil stores” there, Trump said on a social media site called Truth Social. He also said that Pakistan can sell oil to India in future.
Trump’s statement and agreement details
“We have finalized a deal with Pakistan, in which the two countries together will develop its huge oil reserves,” Trump said in his tweet. We are currently choosing the oil company leading this partnership. Perhaps they may also sell oil to India in future! ,
How much oil does Pakistan have?
According to the American Central Intelligence Agency (CIA), Pakistan has about 332 million barrels of proven oil reserves, which make it the 52nd largest oil reserves in the world. It is ahead of Türkiye in the list and ahead Trinidad and Tobago. At the same time, India has about 4.5 billion barrel oil reserves, from which it comes in 23rd position.
So far America’s investment in Pakistan limited
So far, the economic role of US-PAK Trade Deal has been limited in Pakistan. According to the State Bank of Pakistan, in the first quarter of FY 2025, FDI (FDI) came from the US to Pakistan from just $ 29 million (FDI). In contrast, China invested $ 404 million, which became the largest investor for Pakistan.
Effect of trade agreement and tariff exemption
Even before this announcement of Donald Trump, there was a trade agreement between Pakistan and the US. Pakistan Finance Minister Muhammad Aurangzeb met US trade representative Jemisson Greer and Commerce Secretary Howard Lutynik in Washington. If this agreement was not done, Pakistan would have to face 29% tariffs on exports to the US from August 1.
Although Pakistan can get relief from this new deal, the official disclosure of the new tariff rates has not been revealed yet.
25% tariff on India and penalty on oil purchase from Russia
On the same day, Trump also announced additional punishment on India for purchasing 25% tariffs on all US exports and oil from Russia from 1 August. This step can give a big blow to Indo-US trade talks, especially when the deadline remains just a few days left.
Trump’s strategy is said to be made to protect the interests of America, but it can cause damage to countries like India and Asian competitors like Indonesia and Vietnam.
