US and Pakistan Announce Energy Deal Targeting 9.1 Billion Barrels Oil Potential $11.3 Billion Import Bill Prompts Urgent Action

On August 6, President Trump revealed a landmark US-Pakistan trade and energy agreement set to reshape energy cooperation and lower tariffs on Pakistani exports to the US. The deal will see American companies involved in developing Pakistan’s vast oil reserves, though precise details are yet to be disclosed.

Pakistan views this partnership as a crucial lifeline for its fragile energy sector, with over 85% of crude oil currently imported—costing the country $11.3 billion in the latest fiscal year and accounting for nearly 20% of total imports. Despite estimates of 9.1 billion barrels in recoverable shale oil, proven conventional reserves remain limited at just 234–353 million barrels. Daily output stands at only 60,000 barrels, far below India’s 1 million+ barrels per day.

Islamabad sees the US role as a pivotal breakthrough to revive the economy and reduce energy vulnerability. Pakistan’s energy ministry estimates $25–30 billion in investment is needed over the next decade to tap just 10% of its 235 trillion cubic feet of gas resources and curb rising LNG imports. However, international interest has been weak, with no bidders in last year’s exploration block tenders.

The agreement signals a possible turning point for Pakistan’s energy independence, but success hinges on foreign investment following through.