In a first, Pakistan has agreed to import US crude oil, marking a major shift in its long-standing dependence on Middle Eastern energy suppliers.
Oil is Pakistan’s biggest import item, and its shipments were valued at $11.3 billion in the year ending June 30, 2025,(AFP)
The historic oil deal comes just months after US President Donald Trump threatened Pakistani exports with dramatic tariffs, forcing Islamabad to increase its energy and trade relations with Washington.
Pakistan’s largest refiner, Cnergyico, will import 1 million barrels of oil from American West Texas Intermediate (WTI) crude from global commodity trader Vitol in October, its vice chairman, Usama Qureshi, told Reuters on Friday.
Also Read | India’s state refiners halt Russian oil purchases: Report
“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 said, adding that the shipment was not meant for resale.
The landmark deal was the result of months of negotiations that began in April, shortly after President Trump announced potential 29% tariffs on imports from Pakistan.
Also Read | Donald Trump announces plans to develop Pakistan’s “massive oil reserves”
In response, Pakistan’s finance and petroleum ministries encouraged local refineries to explore US crude imports after the April tariff announcement, Qureshi said.
Why is buying oil from the US significant for Pakistan?
Oil is Pakistan’s biggest import item, and its shipments were valued at $11.3 billion in the year ending June 30, 2025, accounting for nearly a fifth of the country’s total import bill.
The import deal will help Pakistan diversify its crude sourcing and reduce reliance on Middle Eastern suppliers, who account for nearly all of its oil imports.
“Gross refining margin is on par with Gulf grades, and no blending or refinery tweaks are required,” Qureshi said.
The deal coincides with a broader trade agreement between the US and Pakistan announced by Trump, saying that Washington would help Islamabad develop its “massive oil reserves.”
It is not immediately clear what massive oil reserves in Pakistan Trump was referring to. Trump also made no mention of tariffs in his announcement.
Islamabad said the agreement would lead to lower tariffs and increased investment, without specifying the level of duties to be levied on Pakistani shipments.