TLDR:
• Pakistan considers US crude oil imports
• Aims to reduce three billion dollar deficit
• Move to ease tariff pressure
ISLAMABAD (The Thursday Times) — Pakistan is actively exploring the option of importing crude oil from the United States for the first time, in a move aimed at addressing its growing trade imbalance with Washington that has triggered increased tariffs on Pakistani exports. This strategic consideration forms part of a broader policy recalibration as countries worldwide scramble to cushion the blow from President Donald Trump’s sweeping import duties.
Trade imbalance triggers policy rethink
Faced with a trade surplus of over three billion dollars with the United States, Pakistan has been hit with a 29 percent tariff on its exports, in addition to the 10 percent base tariff already in place. In a bid to de-escalate the tariff regime, the government is considering purchasing approximately one billion dollars’ worth of US crude oil — an amount that would match current annual oil import levels.
This shift would be the first time Pakistan sources crude from the US, marking a departure from its traditional reliance on Middle Eastern suppliers.
Diversifying away from the Gulf
Pakistan currently imports most of its oil from Gulf nations such as Saudi Arabia and the United Arab Emirates. In 2024 alone, oil imports reached a total of 5.1 billion dollars. Officials believe diversifying energy sources to include American crude would not only help correct the trade imbalance but also align Islamabad with other economies seeking to ease US trade pressure through increased energy imports.
Countries such as India, Japan, and South Korea have already ramped up energy purchases from the US to balance trade and maintain diplomatic goodwill. Pakistan is now signalling its willingness to do the same.
Strategic costs and domestic pricing
Although importing oil from the US would incur higher shipping costs — roughly three dollars more per barrel than Gulf oil — the government believes the domestic impact would be minimal. Officials estimate the consumer price of fuel would increase by just 0.50 rupees per litre, a cost the government is willing to absorb in the short term.
By taking this calculated hit, Islamabad hopes to ease long-term tariff burdens on key exports such as textiles and surgical instruments, which have suffered from Trump-era trade restrictions.
Expanding US import portfolio
Crude oil is only one part of the wider rebalancing agenda. Pakistani trade officials have confirmed that additional American imports are under consideration, including agricultural products such as soybeans and industrial items like steel, machinery, and processed metals.
These sectors have seen rising global demand and could serve Pakistan’s domestic growth needs while also helping satisfy Washington’s emphasis on reciprocal trade.
High-level negotiations on the horizon
According to government sources, Islamabad is preparing to send a high-level trade delegation to Washington in the coming weeks to formally propose the crude oil deal and lay the groundwork for broader tariff relief negotiations.
