U.S. tariff benefits noted by Pakistan's financial advisor, underscoring their eagerness for investment in the energy sector.
The United States has made a significant commitment to co-develop Pakistan's vast newly confirmed oil and gas reserves, marking a significant step towards reducing Pakistan's heavy reliance on expensive crude imports. This development comes as part of a broader 2025 bilateral trade deal that also includes substantial tariff cuts on Pakistan's textile exports [1][2][4].
The first shipment of U.S. crude oil to Pakistan is scheduled for October 2025, with the oil cargo, West Texas Intermediate light crude, to be loaded from Houston this month and expected to arrive in Karachi in the second half of October [1][2]. This move is expected to help Pakistan diversify its crude sourcing and reduce its reliance on Middle Eastern suppliers, which account for nearly all of its oil imports.
Pakistan stands as a potential country for significant oil and gas sector investment from the United States, with the U.S. providing strategic geopolitical backing, technological expertise, and direct corporate involvement in exploration and development of domestic oil reserves, bringing advanced technology and investment that Pakistan’s energy sector has historically lacked [1][2][3].
The U.S. tariff rates for Pakistan are more competitive compared to regional trade rivals such as Vietnam and India, offering Pakistan an advantage over its competitors [1]. The current US tariff rate for Pakistan in the oil and gas sector is 19%, the lowest in South & Southeast Asia [4].
This U.S.-Pakistan energy partnership is viewed as transformative geopolitically, aligning Pakistan more closely with U.S. strategic interests and potentially bringing stability to the fraught Balochistan region where much drilling is planned [1].
In a positive economic development, the new fiscal year in Pakistan is off to a solid start, with low inflation, better-than-target tax collection, double-digit exports growth, and the equity market making new highs [6]. Furthermore, the IT & e-Commerce sector led the way in company registrations in July 2025, as per the Securities and Exchange Commission of Pakistan (SECP) [7].
Pakistan registered a record number of companies in July 2025, with over 4,000 companies registered, as announced by Finance Adviser Schehzad [8]. The US administration imposed a 19% reciprocal tariff on a wide range of Pakistani goods, lower than the initially proposed 29%, indicating a positive shift in US-Pakistan trade relations [9].
Looking ahead, Cnergyico may consider buying at least 1 million barrels of US oil a month after evaluating the first shipment, given its current monthly demand of 4.6 million barrels [5]. The demand for oil typically strengthens in the October-November period, according to Cnergyico's vice chairman, Usama Qureshi [10].
The US is in the process of choosing the Oil Company that will lead the partnership for developing Pakistan's oil reserves, with major U.S. energy firms like Chevron and ExxonMobil leading exploration and upstream activities [1][2][5]. This partnership is expected to set a new standard for regional engagements, with a focus on joint development, strategic technology transfer, and integration into a broader trade agreement with tariff concessions and geopolitical alignment [1][2][3][4][5].
The US energy firms, such as Chevron and ExxonMobil, are leading the partnership for developing Pakistan's oil reserves, marking a potential significant investment in the country's energy sector. This partnership is likely to boost Pakistan's personal-finance sector, given the anticipated boost in the economy and potential job creation.
The demand for oil in Pakistan, particularly during the October-November period, is expected to increase with Cnergyico potentially purchasing at least 1 million barrels of US oil monthly after evaluating the first shipment. This oil sector growth could lead to positive news articles for the business and finance industry.
The US tariff rates for Pakistan are competitive, offering an advantage over regional trade rivals like Vietnam and India in the energy and trade sectors. This financial advantage could attract more investment and economic growth in Pakistan's oil and gas industry.
With improved tariff rates, US-Pakistan trade relations have shown a positive shift, as demonstrated by the lower-than-expected reciprocal tariffs imposed on Pakistani goods. This improved relationship could pave the way for further joint ventures and investments, especially in the art sector, such as designing sustainable energy systems for the country.
The U.S. providing strategic geopolitical backing, technological expertise, and direct corporate involvement in Pakistan's oil reserves could foster energy security, potentially bringing stability to the East, particularly the Balochistan region. This political stability could encourage more investing from global industries like finance and energy.
