KARACHI: Pakistan is considering importing crude oil from the United States for the first time to offset a trade imbalance that triggered higher US tariffs, according to a government source directly involved with the proposal and a refinery executive.
Countries are scrambling to find ways to lower their US tariff burdens, including buying more US oil and gas, as President Donald Trump’s sweeping import duties rattle economies and markets.
“It is one of the products being reviewed ahead of a delegation leaving for the US to talk about tariffs,” said a government source directly involved with the proposal to the prime minister to buy more US crude.
“It is under active consideration. We are exploring opportunities and the structure to do it, but the PM has to approve it,” he said.
Trump has imposed a 10 percent baseline tariff on all imports to the US and higher duties on dozens of other countries. Pakistan faces a 29 percent tariff due to a trade surplus with the US of about $3 billion, although that is subject to the 90-day pause Trump announced last week.
The refinery executive told Reuters that the idea is to buy US crude equivalent to Pakistan’s current imports of oil and refined products, or about $1 billion of oil.
The sources declined to be named as the proposal is in its preliminary stage.
Pakistan’s petroleum ministry did not immediately respond to a request for comment.
Pakistan imported 137,000 barrels per day of crude in 2024, mostly light grades from the Middle East, with Saudi Arabia and the United Arab Emirates among its top suppliers, data from analytics firm Kpler showed. Oil imports amounted to $5.1 billion in 2024, data from Pakistan’s central bank showed.
In February, Saudi Arabia, through the Saudi Fund for Development (SFD), extended a $1.2 billion financing facility to Pakistan for the import of oil products for a year. The SFD has provided approximately $6.7 billion to Islamabad for oil products since 2019.
Before Trump’s partial tariff pause last week, Pakistan said that it would send a delegation to the US in the coming weeks to negotiate new tariffs.
Several big energy importers are looking to buy more from the US to ease trade surpluses.
Last Friday, Indian state gas firm GAIL India Ltd. issued a tender to buy a 26 percent stake in a US liquefied natural gas (LNG) project and import LNG, while Japan, South Korea and Taiwan have discussed participating in an LNG project in the US state of Alaska.
Pakistan mulls US oil imports to ease trade imbalance
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Pakistan mulls US oil imports to ease trade imbalance
- Pakistan said that it would send a delegation to the US in the coming weeks to negotiate new tariffs
- Countries are scrambling to find ways to lower their US tariff burdens, including buying more US oil and gas
Pakistan, Indonesia agree to establish joint trade committee to deepen economic partnership
- Both countries last month signed seven agreements to deepen cooperation in trade, higher education, halal certification and health
- Pakistan intends to organize a Single-Country Exhibition and Business Forum in Jakarta, with invitations extended to ASEAN members
KARACHI: Pakistan and Indonesia further strengthened their economic partnership with the signing of a Memorandum of Understanding (MoU) on the establishment of the Indonesia–Pakistan Joint Trade Committee (JTC) to enhance dialogue, facilitate cooperation and jointly address opportunities and challenges in bilateral trade, the Pakistani commerce ministry said on Saturday.
The development comes a month after both countries signed seven memoranda of understanding to deepen cooperation in trade, higher education, halal certification and health during Indonesian President Prabowo Subianto’s two-day visit to Islamabad.
The MoU was signed following successful high-level talks led by Commerce Minister Jam Kamal Khan and visiting Indonesian Vice Minister of Trade Ms. Dyah Roro Esty Widya Putri, reflecting a shared commitment to deepening economic ties.
Khan underscored Indonesia’s strategic importance within the Association of Southeast Asian Nations (ASEAN) and highlighting its potential role as a regional hub for fostering trilateral and regional economic cooperation.
“Pakistan could serve as a reliable source for minerals, cosmetics, pharmaceuticals, and agri-food commodities for the Indonesian market,” he was quoted as saying.
Last month, Prime Minister Shehbaz Sharif said Pakistan’s bilateral trade with Indonesia stood at $4.5 billion, with more than 90 percent of it comprising palm oil imports from Indonesia. He said both sides discussed “corrective measures” to balance this trade during President Subianto’s visit to Islamabad.
Commerce Minister Khan conveyed Pakistan’s intention to organize a Single-Country Exhibition and Business Forum in Jakarta, with invitations to be extended to ASEAN member states aimed at showcasing Pakistani products and strengthening regional business linkages, according to the commerce ministry.
The Trade Development Authority of Pakistan (TDAP) sought Indonesian facilitation for the early announcement of fruit import quotas, rationalization of certification requirements for Pakistani exports, notification of rice import quotas, and improved market access for industrial-grade potatoes from Pakistan.
“Both sides agreed to work jointly toward expanding the existing Preferential Trade Agreement (PTA), with the shared objective of progressing toward a Comprehensive Economic Partnership Agreement (CEPA) to unlock greater trade and investment opportunities,” the commerce ministry added.
