A day after US President Donald Trump announced a ‘massive oil deal with Pakistan, Islamabad has agreed to import crude oil from the United States for the first time. The deal is seen as a significant shift from its traditional reliance on Middle Eastern energy suppliers.
Pakistan’s Largest Oil Refiner Cnergyico to Import 1 Million Barrels of WTI Crude
Pakistan’s largest oil refiner, Cnergyico, will import one million barrels of American West Texas Intermediate (WTI) crude in October. The shipment will be supplied by global commodity trader Vitol.
Also Read: Does Pakistan Really Have ‘Massive’ Oil Reserves? Here’s What The Data And Experts Reveal
“This is a test spot cargo under our umbrella term agreement with Vitol,” said Usama Qureshi, Vice Chairman of Cnergyico, speaking to Reuters on Friday. “If it is commercially viable and available, we could import at least one cargo per month,” he added, clarifying that the shipment is not intended for resale.
Why Is Pakistan Buying US Oil Now?
The agreement comes months after former US President Donald Trump announced plans for sweeping tariffs on Pakistani exports, with a proposed 29% duty. The announcement in April led Pakistan’s finance and petroleum ministries to push local refineries to explore US crude import options.
According to Qureshi, negotiations for the deal began shortly after the tariff threat, eventually culminating in the October cargo arrangement.
How Much Oil Does Pakistan Import?
Oil remains Pakistan’s largest import commodity. In the fiscal year ending June 30, 2025, the country’s oil shipments were valued at $11.3 billion, roughly one-fifth of its total import bill. The deal with the US is seen as a crucial step toward diversifying crude sources and easing dependence on Gulf suppliers, who currently fulfill nearly all of Pakistan’s oil needs.
“Gross refining margin is on par with Gulf grades, and no blending or refinery tweaks are required,” Qureshi noted, emphasizing the compatibility of WTI crude with existing refining infrastructure.
US-Pakistan Trade Agreement
The oil deal aligns with a broader trade agreement announced by Trump, in which he claimed that the US would assist Pakistan in developing its “massive oil reserves.” However, no specific details were provided, and it remains unclear which reserves Trump was referencing. Notably, his announcement omitted any mention of the proposed tariffs.
Islamabad, meanwhile, stated that the agreement would result in reduced tariffs and increased US investment, although no exact figures or duty levels were disclosed.
Zubair Amin is a Senior Journalist at NewsX with over seven years of experience in reporting and editorial work. He has written for leading national and international publications, including Foreign Policy Magazine, Al Jazeera, The Economic Times, The Indian Express, The Wire, Article 14, Mongabay, News9, among others. His primary focus is on international affairs, with a strong interest in US politics and policy. He also writes on West Asia, Indian polity, and constitutional issues. Zubair tweets at zubaiyr.amin
