KARACHI/SINGAPORE: Pakistan’s largest refiner, Cnergyico, will import one million barrels of oil from Vitol in October, its vice chairman Usama Qureshi told Reuters on Friday, marking the country’s first-ever purchase of US crude following a landmark trade deal.
The West Texas Intermediate (WTI) light crude cargo will be loaded from Houston this month and is expected to arrive in Karachi in the second half of October, Qureshi said.
“This is a test spot cargo under our umbrella term agreement with Vitol. If it is commercially viable and available, we could import at least one cargo per month,” he told Reuters.
The development comes hours after Finance Minister Muhammad Aurangzeb reached a breakthrough with the Trump administration in a meeting with the US Secretary of Commerce, Howard Lutnick, and US Trade Representative, Ambassador Jamieson Greer.
The deal follows months of negotiations which first began in April, the Cnergyico executive said, after US President Donald Trump threatened to impose tariffs on imports from Pakistan.
Although specific details have not surfaced either from Islamabad or Washington on the trade deal, the Ministry for Finance has said that the agreement “will result in a reduction of reciprocal tariff, especially on Pakistani exports to the US” — leading to a fresh beginning in bilateral economic cooperation.
The deal, the ministry added, aims to boost bilateral trade, improve market access, attract investment, and strengthen cooperation in areas of mutual interest.
Announcing the deal on social media a day earlier, Trump said, “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.”
Expanding on a key aspect of the trade deal, President Trump indicated that the two countries were currently “in the process of choosing the oil company” that would lead this partnership.
Under the said understanding, Pakistan and the US will also focus on energy, minerals, information technology, cryptocurrency, and other key areas.
It added that the agreement would help grow Pakistan’s trade ties with the US and improve access to each other’s markets. “It is also expected to draw more US investment into Pakistan’s infrastructure and development projects.”
With the trade deal likely to attract US investment as well, Finance Minister Aurangzeb said the development reflected a broader economic and strategic partnership now taking shape.
It is pertinent to mention that the US total goods trade with Pakistan was an estimated $7.3 billion in 2024, according to the website of the Office of the US Trade Representative, up from around $6.9 billion in 2023.
The US goods trade deficit with Pakistan was $3 billion in 2024, a 5.2% increase over 2023.
Aurangzeb says broader partnership taking shape
Finance Minister Senator Muhammad Aurangzeb told Geo News that Pakistan and the United States had agreed to move trade and investment hand in hand, following a key meeting in Washington.
Speaking after talks with US Commerce Secretary Howard Lutting and Trade Representative Jameson Greer, Aurangzeb described the meeting as constructive and said the two sides finalised the trade agreement during the discussion.
“This deal reflects a broader economic and strategic partnership that’s now taking shape,” he said.
The minister thanked all those involved in the negotiations, saying the private sector had played a vital role and would continue to be supported, especially in helping to reduce the trade imbalance.
US total goods trade with Pakistan was an estimated $7.3 billion in 2024, according to the website of the Office of the US Trade Representative, up from around $6.9 billion in 2023. The US goods trade deficit with Pakistan was $3 billion in 2024, a 5.2% increase over 2023.
