In a strategic shift in South Asia, U.S. President Donald Trump has announced a major energy agreement with Pakistan focused on developing the country’s vast oil reserves. The move aims to strengthen bilateral economic ties and reduce America’s trade deficit.
“We’ve just signed a deal with Pakistan to jointly develop their massive oil reserves,” Trump said in a statement, adding, “We are currently selecting the American oil company to lead this partnership. Who knows — one day they might even sell oil to India.”
Trade Pressure on India
The announcement comes shortly after Trump hinted at imposing a 25% tariff and additional penalties on India, citing stalled trade negotiations. He mentioned South Korea is already in talks to reduce tariffs and offered that a comprehensive report on global trade rebalancing will be released soon.
“This is not just about Pakistan,” Trump said. “Other countries are offering tariff concessions to help reduce our trade deficit. We are in talks and making deals that put American interests first.”
Trump’s latest move signals growing economic engagement with Pakistan — potentially reshaping the power dynamics in South Asia.
A Geopolitical Shift
Analysts view the U.S.-Pakistan deal as both an economic opportunity and a diplomatic message to India. With U.S.-India trade talks at an impasse, Washington’s closer alignment with Islamabad may serve as leverage in broader regional strategy.
According to international media, the agreement is expected to open new investment avenues for American companies in Pakistan’s energy sector, particularly in oil-rich regions like Balochistan.
The development could accelerate U.S. interest in Pakistan’s underutilized energy infrastructure while signaling to India that trade cooperation can’t be taken for granted.
In a pointed remark, Trump said, “Maybe one day, India will end up buying oil from Pakistan. That’s how things can change.”
By announcing this energy agreement, the U.S. not only seeks to revive domestic industries but also repositions itself in South Asia’s evolving economic landscape.
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