KARACHI – A senior adviser to Pakistan’s finance ministry has revealed that the United States has expressed strong interest in investing in Pakistan’s oil and gas sector, coinciding with Washington imposing the region’s lowest tariff rate on Pakistani goods under a new trade policy.
The statement follows a major shift in US trade policy last week when President Donald Trump signed a sweeping executive order implementing reciprocal tariffs. Pakistan secured a 19% tariff—lower than initially proposed and significantly less than those imposed on regional competitors such as Vietnam (20%) and India (50%).
“Pakistan stands at 19%—the lowest US tariff in South and Southeast Asia,” said Khurram Schehzad, Adviser to the Finance Minister, in a post on X. “In addition, the US has shown a strong investment appetite in Pakistan’s oil and gas sector to help build massive reserves.”
Schehzad also highlighted the steep penalties placed on other countries, noting that India and Brazil now face the highest US tariff rates globally at 50%, followed by Syria (41%), Laos (40%), and Myanmar (40%).
President Trump, in a separate post, confirmed the formation of a new energy partnership with Pakistan:
“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 announced, adding that an American oil company would soon be selected to lead the initiative.
In line with the deal, Pakistan’s top oil refiner, Cnergyico, is set to import one million barrels of US crude oil in October—marking Pakistan’s first-ever purchase of American oil. The shipment of West Texas Intermediate light crude will be loaded in Houston this month and is expected to arrive in Karachi by mid-October, according to Vice Chairman Usama Qureshi.
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Oil remains Pakistan’s largest import, totaling $11.3 billion in the fiscal year ending June 30, 2025—nearly 20% of the country’s total imports. The US deal is seen as a step toward diversifying Pakistan’s oil sources, reducing its dependence on Middle Eastern supplies.
Qureshi also hinted that Cnergyico could consider making monthly purchases of US oil—up to a million barrels—if the initial shipment proves successful. “It aligns well with domestic market requirements. Demand typically strengthens in the October–November period,” he said.
Meanwhile, Schehzad noted continued economic momentum, revealing that over 4,000 companies were registered with the Securities and Exchange Commission of Pakistan (SECP) in July—marking the highest monthly total in the country’s history, with IT and e-commerce leading the surge.
He further highlighted promising macroeconomic trends as the new fiscal year begins, including reduced inflation, better-than-expected tax collection, rising exports, bullish equity markets, and favorable US trade terms.
These developments come as Pakistan seeks to rebuild its economy and boost foreign investment, following the approval of a $7 billion IMF program in late 2024.