WASHINGTON (Diya TV) — The United States and Pakistan have reached a new trade agreement that aims to strengthen economic ties and boost energy cooperation between the two nations. The deal was announced Thursday as officials from both countries concluded a series of meetings in Washington.

Pakistan’s finance ministry said the deal includes a reduction in reciprocal tariffs, especially on Pakistani exports to the United States. While neither side disclosed exact tariff figures, the ministry noted that the agreement will improve trade flow and ease business barriers.

Pakistan exports over $5 billion in goods to the U.S. annually. The country also imports around $2.1 billion worth of American products. Key Pakistani exports include textiles, leather, and sports goods. In return, Pakistan seeks to boost American imports such as cotton and soybeans.

The finance ministry described the deal as a “turning point” in bilateral trade, with officials confident it will create new market opportunities for Pakistani industries.

A major feature of the agreement is a joint effort to develop Pakistan’s untapped oil reserves. U.S. President Donald Trump posted on Truth Social that the two countries will “work together on developing their massive oil reserves.” He added that officials are now selecting a U.S.-based energy company to lead the project.

This collaboration is expected to draw significant American investment into Pakistan’s energy infrastructure. Experts believe oil exploration could help Pakistan reduce its dependency on imported fuel and create local jobs.

The move also aligns with the U.S. interest in securing energy partnerships in South Asia. U.S. companies have long sought access to new energy markets, and Pakistan’s reserves offer a strategic opportunity.

The agreement comes at a time when U.S.-Pakistan relations are improving after years of political and military strain. In June, President Trump welcomed Pakistan’s army chief, Field Marshal Asim Munir, to the White House for high-level talks. The visit marked a rare diplomatic engagement and signaled warming ties.

Analysts say the new trade deal could help solidify a broader partnership between the two countries. It reflects mutual interest in stability, economic cooperation, and energy security.

The United States has also shown interest in emerging sectors within Pakistan, including digital assets and financial technology. Pakistan plans to legalize and regulate cryptocurrencies, a move that aligns with Trump’s recent pro-crypto stance.

Bloomberg News reported that Pakistan is drafting policies to attract foreign investment into its digital economy. The country hopes to tap into the rising interest in crypto markets across Asia.

U.S. tech companies have been monitoring South Asia for expansion, and Pakistan’s large youth population and growing mobile usage offer significant potential. The finance ministry confirmed that discussions around digital collaboration were also part of the Washington meetings.

The trade deal marks a renewed phase of cooperation between the two countries. It focuses on reducing trade barriers, expanding energy ties, and exploring future tech-driven growth. Both sides view the agreement as a stepping stone toward a deeper economic relationship.

Officials expect the oil development project to begin in early 2026, once a lead partner is finalized. Talks on digital finance and infrastructure investment will continue in the coming months.