Washington: US President Donald Trump said on Wednesday his administration struck a deal with Pakistan in which Washington will work with Islamabad in developing the nation's oil reserves.

"We have just concluded a Deal with the Country of Pakistan, whereby Pakistan and the United States will work together on developing their massive Oil Reserves," Trump wrote on social media.

"We are in the process of choosing the Oil Company that will lead this Partnership."

Trump's social media post did not provide further details on the deal between the US and Pakistan. 

In a social media post, Pakistani Prime Minister Sharif said, “I wish to convey my profound thanks to President Trump @realDonaldTrump for his leadership role in finalisation of the historic US-Pakistan trade agreement, successfully concluded by our two sides in Washington, last night.”

Last week, Pakistani Foreign Minister Ishaq Dar said the US and Pakistan were "very close" to a trade deal that could come within days, after he met with Secretary of State Marco Rubio on Friday.

Dar and Rubio had discussed expanding trade and ties in critical minerals and mining, both sides said. Other Pakistani officials have also visited the US in recent weeks for talks.

Under Trump, Washington has attempted to renegotiate trade agreements with many countries that he threatened with tariffs over what he calls unfair trade relations. Many economists dispute Trump's characterisation.

US total goods trade with Pakistan was an estimated $7.3 billion in 2024, according to the website of the office of the US trade representative, up from round $6.9 billion in 2023. The US goods trade deficit with Pakistan was $3 billion in 2024, a 5.2% increase over 2023.

Washington has also aimed to build stronger ties with Asian powers in recent years to counter its rival China's influence in the region. Pakistan is designated by Washington as a "major non-NATO ally."

Trump also said Washington was still negotiating with Pakistan's rival India on trade after announcing earlier in the day the US will impose a 25% tariff on goods imported from India starting on Friday.

Pakistan has also recently said it "appreciated the pivotal role" by Trump and Rubio "in de-escalating tensions between Pakistan and India by facilitating a ceasefire."

Trump has repeatedly taken credit for the India-Pakistan ceasefire he announced on social media on May 10 after Washington held talks with both sides. India disputes Trump's claims that the ceasefire resulted from his intervention and trade threats. India's position is that New Delhi and Islamabad must resolve problems directly with no outside involvement.

The latest escalation in the decades-old India-Pakistan rivalry was triggered by a deadly April 22 militant attack in India-administered Kashmir that India blamed on Pakistan. Islamabad denied responsibility. India struck Pakistan on May 7 and the two nations exchanged hostilities until the ceasefire was declared on May 10.

(With inputs from Reuters, PTI)