Pakistan considers first-time US oil imports to offset tariff burden
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Pakistan is exploring the option of importing crude oil from the United States for the first time, in an effort to offset a trade imbalance that has resulted in steep US tariffs, according to a government source and a refinery executive familiar with the proposal.
The plan is part of a broader strategy ahead of a Pakistani delegation's upcoming visit to Washington to negotiate tariff relief. 'It is under active consideration… but the Prime Minister has to approve it,' the source said.
President Donald Trump's administration has imposed a 10% baseline tariff on all imports and higher duties on countries with significant trade surpluses. Pakistan currently faces a 29% tariff due to its $3 billion surplus with the US, although those duties are paused for 90 days following a recent announcement.
The refinery executive said Pakistan may consider importing up to $1 billion in US crude, matching its current oil and refined product imports. In 2024, Pakistan imported 137,000 barrels per day of crude oil, primarily from Middle Eastern suppliers such as Saudi Arabia and the UAE, totaling $5.1 billion.
The Saudi Fund for Development (SFD) recently extended a $1.2 billion oil financing facility to Pakistan for 2024, and has provided about $6.7 billion in oil support since 2019.
The proposal is still in its early stages, and Pakistan's petroleum ministry has not commented.
Globally, other energy importers are making similar moves to reduce trade tensions. India's GAIL recently tendered for a stake in a US LNG project, while Japan, South Korea, and Taiwan are eyeing investments in Alaska's LNG infrastructure.
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