US Oil Partnership Could Embark Pakistan on ‘Transformative Path’, Say Experts
By Anadolu Agency | Published July 31, 2025
What is the Deal?
The United States and Pakistan have reached a trade agreement that includes a partnership in exploring and developing Pakistan’s oil reserves. President Donald Trump confirmed the deal on social media, describing the country’s oil potential as “massive.” The partnership will soon appoint a lead oil company to initiate work.
What to Expect
Experts predict significant international investment, modern technology, and economic uplift for Pakistan’s untapped energy sector. Key regions expected to benefit include Balochistan, Khyber Pakhtunkhwa, and tribal areas. Offshore energy reserves, relatively free of security concerns, are also seen as major opportunities. The deal could place Pakistan on a path similar to Saudi Arabia’s energy transformation.
Expert Reactions
Oil industry experts such as Muhammad Iqbal Jawaid and Wasi Khan welcomed the deal, emphasizing the enormous potential of Pakistan’s oil and gas sector and the need for infrastructure, investment, and security improvements in critical areas.
Security Challenges
Security in regions like South and North Waziristan, as well as Balochistan, remains a major hurdle. These areas are believed to have significant oil and gas reserves but have seen limited exploration due to ongoing conflicts and instability.
Pakistan’s Energy Outlook
According to the US Energy Information Administration, Pakistan has 353 million barrels of proven oil reserves and produces 60,000 barrels per day. It imports over $12 billion worth of oil annually. A previous EIA assessment estimated 9 billion barrels of technically recoverable shale oil in the country.
