President Trump has announced a new trade deal with Pakistan focused on jointly developing the South Asian nation's oil reserves. The announcement, made via a Truth Social post on Wednesday, July 30, 2025, detailed that the U.S. and Pakistan will collaborate to tap into Pakistan's "massive Oil Reserves". The U.S. is currently in the process of selecting an oil company to spearhead this partnership.

Trump also speculated about the future potential of this partnership, suggesting that Pakistan might one day sell oil to India. This statement has spurred discussions regarding regional trade dynamics.

This announcement comes amid broader efforts by the U.S. administration to forge new trade partnerships. Trump stated that he has been in contact with leaders from numerous countries, all expressing a desire to make the United States "extremely happy". He also noted that several countries are proposing tariff reductions. Trump believes these trade deals will significantly reduce the U.S. trade deficit and promised a comprehensive report at a later date.

The agreement follows a recent meeting between U.S. Secretary of State Marco Rubio and Pakistani Foreign Minister Ishaq Dar. Dar had previously indicated that a trade deal with the U.S. was imminent.

In a move seen as a gesture of goodwill, Pakistan recently exempted foreign technology companies from a 5% tax on digitally supplied goods and services. The Federal Board of Revenue officially announced this exemption on Wednesday, coinciding with Finance Minister Muhammad Aurangzeb's visit to Washington for trade talks.

While the details of the trade deal remain limited, the agreement with Pakistan includes the joint development of the country's oil reserves. The partnership is still in its early phases, and the selection of the lead oil company is underway.

This announcement also comes as Trump has set an August 1st deadline for countries to strike trade deals with the U.S. or face significantly increased tariffs. Simultaneously, Trump stated that South Korea has offered to lower its planned 25% tariff on goods imported into the U.S.. Trump has also imposed a 25% tariff on imports from India, citing high tariffs and trade barriers.