Description: US President Donald Trump announced the US concluded an oil exploitation agreement with Pakistan which was confirmed by Pakistan’s Deputy Foreign Minister, Ishaq Dar. Details regarding the agreement remained scarce, as Trump further stated the US was reviewing options for selecting an oil company which would handle the operations in Pakistan. The announcement arrives only a day after Trump stated the US would impose 25% tariffs on India and heavily criticized the country’s tariff policies and its trade and military connections with Russia. The agreement was also expected to ease tariff tensions between the countries, with Pakistan facing up to 29% tariffs from the US.
Impact: Pakistan managed to leverage its primarily oil – based economy to devise closer ties with the US and create more divisions between the US and India. The US would most probably exploit the oil agreement for developing further economic and investment ties with Pakistan, further pressuring India towards agreeing trade concessions. Pakistan would most probably benefit from the agreement in terms of reducing trade pressure and agreeing a favorable trade agreement with the US. Through the economic insertion in Pakistan, the US also directly counters China’s dominant role in the country, as Pakistan is one of the crucial partners in China’s Belt and Road Initiative.