KARACHI: Pakistan said Wednesday it had reached a trade deal with the United States after weeks of extensive negotiations, paving the way for reduced tariffs and deeper economic ties, as US President Donald Trump highlighted a new partnership to develop Pakistan’s oil reserves.

The announcements came after the US imposed a 29 percent “reciprocal tariff” on Pakistani exports under Trump’s trade measures announced in April, a move that raised alarm in Islamabad amid concerns over its fragile economic recovery. Washington later suspended the tariffs for 90 days to allow for negotiations with affected countries, including Pakistan.

Federal Minister for Finance Muhammad Aurangzeb led the negotiations from Pakistan’s side with US Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer. The breakthrough came just ahead of the August 1 deadline.

“In a landmark development, Pakistan and the United States finalized a trade agreement today aimed at boosting bilateral trade, expanding market access, attracting investment and fostering cooperation in areas of mutual interest,” Pakistan’s finance ministry said in a statement issued from Washington.

“The agreement will result in reduction of reciprocal tariff especially on Pakistani exports to the United States,” it added. “This deal marks the beginning of a new era of economic collaboration especially in energy, mines and mineral, IT, cryptocurrency and other sectors.”

The statement followed a final round of talks in Washington on Wednesday morning.

Trump also referenced to the agreement in a social media post, saying the two countries had concluded a deal to work together on oil reserves.

“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,” he said. “We are in the process of choosing the Oil Company that will lead this Partnership.”

Last week, Pakistan’s Deputy Prime Minister Ishaq Dar said the two countries were “very close” to a trade deal following a meeting with US Secretary of State Marco Rubio in Washington.

Pakistan’s finance ministry said the deal complements ongoing efforts to broaden the scope of the strategic partnership between Islamabad and Washington.

“The agreement enhances Pakistan’s access to the US market and vice versa,” it informed. “Additionally, the deal is expected to spur increased US investment in Pakistan’s infrastructure and development projects.”

In a video message, Finance Minister Aurangzeb said Pakistan’s objective was always to move “beyond the immediate trade imperative,” calling the agreement “a real win-win situation” for both nations.

“There are several sectors we will begin working on — starting with energy, then moving to minerals and mining, and also digital infrastructure and the broader new economy we are envisioning,” he said.

“We have come a long way from where we started and where we now stand in terms of our overall strategic partnership with the United States,” he added.

Reacting to the development, Prime Minister Shehbaz Sharif thanked the US president and expressed hope that the deal would pave the way for deeper collaboration between the two countries.

“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,” he said in a social media post.

“This landmark deal will enhance our growing cooperation so as to expand the frontiers of our enduring partnership in days to come.”