The United States and Pakistan say they have reached a trade agreement that is expected to allow Washington to help develop Pakistan's largely untapped oil reserves and lower tariffs for the South Asian country.

Islamabad's trade surplus with Washington was around $3 billion in 2024, mainly due to textile exports. The United States is Pakistan's biggest market for textiles.

The US and Pakistan have struck a deal that will result in lower tariffs for the South Asian nation as well as an agreement in which Washington will help develop Islamabad's oil reserves, the two sides said.