Trump says US completes trade deal with Pakistan

The United States and Pakistan have finalized a new trade agreement focusing on oil exploration. President Donald Trump announced the deal on social media, saying both countries will work together to develop their oil reserves. The two governments will now choose a company to lead the oil exploration process. Trump also hinted that Pakistan could eventually sell oil to India, expanding regional trade.

President Trump shared the update on platform X, formerly known as Twitter. He wrote, “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 added that the partnership is still selecting which company will lead the project. Trump suggested the deal might pave the way for Pakistan to export oil to India in the future.

In a related move, Pakistan has removed a 5 percent tax on foreign digital companies. This tax was introduced a month ago and applied to the supply of digitally ordered goods and services. The tax exemption was granted following pressure from the U.S. government as part of trade deal discussions. Although the U.S. prompted the change, the exemption benefits all foreign firms, not just American tech companies.

A senior official from Pakistan’s Federal Board of Revenue confirmed the decision. He said the move supports the broader trade agreement with the United States. The exemption aims to encourage more international companies to operate in Pakistan without facing new digital service taxes. Officials believe this will boost foreign investment and support economic growth.

The oil deal marks a significant shift in U.S.-Pakistan trade relations. It highlights growing cooperation in energy and digital services between the two countries. If successful, this partnership could reshape regional trade dynamics and open new energy markets. Both sides have expressed optimism about the long-term impact of the agreement.