KARACHI – April 15, 2025:
Pakistan is actively exploring the import of crude oil from the United States for the first time in a strategic move aimed at offsetting a growing trade imbalance with Washington that has resulted in higher U.S. tariffs.
According to a senior government official involved in the proposal and a refinery executive, the import plan is under serious review and could soon be presented for approval to Prime Minister Shehbaz Sharif. The proposal is part of broader preparations ahead of a delegation visit to the U.S., where Pakistani officials hope to negotiate tariff relief.
“It is one of the products being reviewed ahead of a delegation leaving for the U.S. to talk about tariffs,” the government source stated. “We are exploring opportunities and the structure to do it, but the PM has to approve it.”
The initiative comes in response to President Donald Trump’s tariff regime, which includes a 10% baseline tariff on all imports and significantly higher duties for countries with trade surpluses. Pakistan currently faces a 29% tariff, attributed to a $3 billion trade surplus with the U.S., though a 90-day pause on new tariffs was announced by Trump last week.
To mitigate these duties, several U.S. trade partners are taking measures to increase their imports from the U.S., especially in the energy sector. Countries like India, Japan, South Korea, and Taiwan have either made LNG investment offers or expanded crude purchases.
Pakistan is reportedly considering buying U.S. crude oil worth around $1 billion—approximately equal to its current annual spending on oil and refined product imports.
In 2024, Pakistan imported 137,000 barrels per day of crude oil, largely consisting of light grades from Saudi Arabia and the UAE, according to data from Kpler, a global energy analytics firm. The total oil import bill stood at $5.1 billion last year, as per data from the State Bank of Pakistan.
Pakistan has also benefitted from Saudi oil financing, with the Saudi Fund for Development (SFD) extending a $1.2 billion facility in February 2025 to support fuel imports. Since 2019, the SFD has provided roughly $6.7 billion in oil-related assistance.
In a related development, a refueling depot at Gwadar Port has been proposed to support maritime fuel logistics, which could further strengthen Pakistan’s strategic energy infrastructure in the region.
The plan to import U.S. crude is still in its early stages, and both the government and the Ministry of Petroleum have not made formal comments yet. However, the move could serve as a key diplomatic gesture in Islamabad’s effort to rebalance trade relations with Washington and gain relief from Trump’s escalating tariffs.
