Prime Minister Shehbaz Sharif on Thursday expressed his “profound thanks” to former US President Donald Trump for his role in finalising a landmark trade agreement between Pakistan and the United States, calling it a “historic” moment in the bilateral relationship.

Taking to X (formerly Twitter), the prime minister wrote:

“I wish to convey my profound thanks to President Trump [@realDonaldTrump] for his leadership role in finalization of the historic US-Pakistan trade agreement, successfully concluded by our two sides in Washington, last night. This landmark deal will enhance our growing cooperation so as to expand the frontiers of our enduring partnership in days to come.”

I wish to convey my profound thanks to President Trump @realDonaldTrump for his leadership role in finalization of the historic US-Pakistan trade agreement, successfully concluded by our two sides in Washington, last night.
This landmark deal will enhance our growing cooperation…
— Shehbaz Sharif (@CMShehbaz) July 31, 2025

The agreement, announced by Donald Trump on his platform Truth Social late Tuesday, includes tariff reductions, improved market access for Pakistani goods, and a framework for joint exploration of oil reserves in Pakistan.

“We have finalized a big trade deal with Pakistan. We will explore oil reserves together with Pakistan. So much oil will be extracted that we may even be able to sell it to India,” Trump had said, calling the deal a strategic partnership with long-term potential.

The agreement was signed following a high-level meeting in Washington between Pakistan’s Finance Minister Senator Muhammad Aurangzeb and US Secretary of Commerce Howard Lutnick, with US Trade Representative Jamieson Greer also in attendance.

According to Pakistan’s Ministry of Finance, the deal seeks to promote economic cooperation across multiple sectors including energy, information technology, minerals, and cryptocurrency. Officials say the agreement will open up new export channels for Pakistan while creating investment opportunities backed by greater tariff parity.

One of the central elements of the pact is the joint development of Pakistan’s oil reserves. Trump stated that the US is currently in the process of selecting an international oil company to lead the exploration project, with a promise of full transparency and mutual trust.

The development comes at a time when the former US president has also signaled aggressive trade policy shifts with other countries. He announced a 25% tariff on imports from India starting August 1, and set a separate deadline of August 12 for a potential deal with China.