US President Donald Trump announced a deal with Pakistan on Thursday — vowing to develop “massive oil reserves” in the country. Details about the agreement remain scarce with the ground reality offering a somewhat different perspective on the matter.
“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. We are in the process of choosing the oil company that will lead this partnership. Who knows, maybe they’ll be selling oil to India someday!” Trump wrote on Truth Social.
‘Massive oil reserves’?
Data from 2016 suggested that Pakistan had proven oil reserves between 234 million and 353.5 million barrels — approximately 0.021% of global supply. In contrast, the US has the largest recoverable oil reserves in the world, with an estimated 264 billion barrels of recoverable oil as of 2025. Meanwhile, neighbouring India has crude oil reserves of approximately 4.8 to 5 billion barrels.
Where is the oil in Pakistan?
Officials have not specified when or where this exploration would take place. Most of Pakistan’s reserves are believed to be in the insurgency-hit southwestern province of Balochistan — where separatists say the province’s natural resources are being exploited by the central government in Islamabad.
Separatists in Balochistan have opposed the extraction of resources by Pakistani and foreign firms and have targeted Pakistani security forces and Chinese nationals working on multibillion-dollar projects related to the China-Pakistan Economic Corridor. Oil reserves are also thought to exist in the southern Sindh, eastern Punjab and northwestern Khyber Pakhtunkhwa provinces.
Pakistan imports over 80% of its oil…
Pakistan currently meets only up to 20% of its oil needs through domestic production — with most of the demand being met through imports from Middle Eastern countries. Petrol currently costs Rs 264.61 per litre (1 Pakistani Rupee = 0.31 Indian Rupee) across the country. Central bank data indicates that oil is its biggest import item — $11.3 billion in the year ended June 2025 — and accounts for nearly a fifth of the total import bill.
Data from Worldometer also suggests that the country has limited reserves that would not be able to meet domestic demand for more than a couple of years if imports were halted. Daily oil production in Pakistan currently stands at around 70,000-80,000 barrels and covers about 15% to 20% of its own consumption.
Pakistan makes first US crude purchase after deal
The deal to develop Pakistani oil reserves appears to have begun with Islamabad making its first-ever purchase of US crude. According to a Reuters report, its largest refiner Cnergyico will import one million barrels of oil from Vitol in October. Vice Chairman Usama Qureshi told the publication on Friday that the West Texas Intermediate light crude cargo will be loaded from Houston this month — expected to arrive in Karachi in the second half of October.
The import deal will help Pakistan diversify its crude sourcing and reduce reliance on Middle Eastern suppliers which currently account for nearly all of its oil imports. Cnergyico also indicated that it could consider buying at least 1 million barrels of US oil a month after it evaluates the first shipment.
(With inputs from agencies)