US President Donald Trump has announced a new agreement between the United States and Pakistan for the collaborative development of Pakistan's oil reserves. This announcement, made on Wednesday, could have implications for ongoing trade discussions between the two nations.

Trump shared the news on his social media platform, Truth Social, stating, "We have just concluded a Deal with the Country of Pakistan, whereby Pakistan and the United States will work together on developing their massive Oil Reserves". He also mentioned that the U.S. is in the process of selecting a company to spearhead the initiative.

In a notable aside, Trump speculated on the potential future impact of this deal, saying, "Who knows, maybe they'll be selling Oil to India some day!". This comment suggests a possible shift in regional trade dynamics, particularly concerning energy resources.

This announcement follows Pakistan's recent decision to exempt foreign technology companies from a 5% tax on digitally supplied goods and services, which is seen as a goodwill gesture towards Washington. This exemption was formally announced by the Federal Board of Revenue, coinciding with Finance Minister Muhammad Aurangzeb's visit to Washington for talks aimed at resolving issues that are currently hindering a broader trade agreement.

Last week, Foreign Minister Ishaq Dar indicated that the United States and Pakistan were "very close" to a trade deal that could materialize within days. Dar's statement came after a meeting with Secretary of State Marco Rubio. Both Dar and Rubio emphasized the importance of expanding trade and strengthening ties in critical minerals and mining.

Trump's announcement is part of a broader effort by his administration to forge new trade partnerships. He stated, "We are very busy in the White House today working on Trade Deals. I have spoken to the Leaders of many Countries, all of whom want to make the United States 'extremely happy'". He also noted that several countries are proposing tariff reductions, which he believes will significantly reduce the U.S. trade deficit. A full report is expected to be released "at the appropriate time".

However, this development arrives shortly after Trump announced a 25% tariff on imports from India, along with a possible "penalty" for India's continued purchases of Russian arms and energy.

Under Trump, Washington has been actively seeking to renegotiate trade agreements, often using the threat of tariffs to address what he views as unfair trade relations. He aims to leverage U.S. economic power to pressure trading partners and encourage foreign companies to relocate to the United States.