Islamabad, Jul 31 (PTI) Pakistan's Prime Minister Shehbaz Sharif on Thursday thanked US President Donald Trump for the “historic” trade agreement reached between Islamabad and Washington, and expressed hope that it would expand cooperation between the two nations.

Trump on Wednesday announced that the US has sealed a deal with Pakistan to work together on developing the South Asian nation's "massive oil reserves".

Pakistan has long claimed to have large oil deposits along its coast, but no progress has been made to tap those deposits. The country currently imports oil from the Middle East to meet its energy demands.

In a social media post, Prime Minister Sharif said, “I wish to convey my profound thanks to President Trump @realDonaldTrump for his leadership role in finalization of the historic US-Pakistan trade agreement, successfully concluded by our two sides in Washington, last night.” “This landmark deal will enhance our growing cooperation so as to expand the frontiers of our enduring partnership in days to come,” he said.

According to state-run Radio Pakistan, the breakthrough was reached during a meeting of Finance Minister Muhammad Aurangzeb with US Secretary of Commerce Howard Lutnick and US Trade Representative Ambassador Jamieson Greer in Washington, DC.

In a Truth Social post, Trump said, “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." “We are in the process of choosing the Oil Company that will lead this Partnership. Who knows, maybe they’ll be selling Oil to India some day!” he added.

According to the report, the trade agreement aims at boosting bilateral trade, expanding market access, attracting investment and fostering cooperation in areas of mutual interest.

“The agreement will result in reduction of reciprocal tariffs especially on Pakistani exports to the United States. This deal marks the beginning of a new era of economic collaboration especially in energy, mines and minerals, IT, cryptocurrency and other sectors,” it said.

The deal complements Pakistan’s existing efforts to broaden the scope of bilateral economic ties, and also enhances its access to the US market and vice versa.

Additionally, the deal is expected to spur increased US investment in Pakistan’s infrastructure and development projects.

The trade agreement underscores the commitment of both nations to deepen their bilateral relationship and explore all avenues for strengthening trade and investment ties, according to the report. PTI SH GRS GRS GRS

Trade agreement establishing joint oil development and tariff reductions to expand bilateral market access and investment. A bilateral trade agreement frames joint development of Pakistan's coastal oil reserves via a selected oil company and aims to attract US investment into Pakistani infrastructure. It provides for reduction of reciprocal tariffs to enhance market access and increase Pakistani exports, and prioritizes cooperation in energy, mines and minerals, information technology, and cryptocurrency to deepen trade and investment ties.