ISLAMABAD: Pakistan and the United States have signed a landmark trade agreement aimed at developing massive untapped oil reserves in Pakistan, mainly in Balochistan.
Prime Minister Shehbaz Sharif praised U.S. President Donald Trump for his “leadership role” in finalizing the deal, calling it the beginning of a “new era” in Pakistan-US relations.
The agreement allows American energy firms to explore and invest in Pakistan’s oil sector, which has long suffered from underinvestment. The deal is expected to bring billions in foreign direct investment and improve energy self-sufficiency.
“This historic agreement will boost economic cooperation and strengthen long-term ties between Pakistan and the United States,” PM Shehbaz posted on social media platform X (formerly Twitter).
President Trump announced the deal in Washington and hinted that Pakistan’s oil could eventually be exported to India.
Key Details of Agreement
Focus Area: Development of oil reserves in Balochistan and southern Pakistan
Key Players: US energy companies, Government of Pakistan
Expected Benefits: Foreign investment, job creation, reduced oil imports
Concerns Over Transparency and Local Impact
Experts and civil society groups have raised concerns about the lack of transparency. So far, the government has not shared revenue-sharing details or environmental safeguards.
Local communities in Balochistan say they were not consulted.
“These deals often ignore the people most affected by them,” said Imran Baloch, a local rights activist.
Environmentalists have also warned of potential damage to ecosystems if oil extraction is not strictly regulated.
Geopolitical Significance
Analysts view this as a strategic shift. The deal gives the U.S. a new economic foothold in Pakistan and may balance China’s growing influence through the China-Pakistan Economic Corridor (CPEC).
“This agreement positions the U.S. as a key energy partner in the region,” said regional analyst Kamran Shahid.
Some critics argue that Trump timed the announcement for political advantage, soon after returning to the White House.
The US-Pakistan oil deal brings big opportunities for energy development and foreign investment. But its long-term success depends on transparency, fair profit-sharing, and local inclusion — especially in sensitive areas like Balochistan.
If ignored, these issues could turn a historic agreement into another missed opportunity.