Does Pakistan have ‘massive oil reserves’? Truth behind Trump’s new deal with Pakistan
&imwidth=600&imheight=450&format=webp&quality=medium "Does Pakistan have ‘massive oil reserves’? Truth behind Trump’s new deal with Pakistan")
Shipping containers are seen at the Karachi port in Karachi, Pakistan, June 10, 2025. Photograph: (Reuters)
Pakistan has 353,500,000 barrels of oil reserves as of 2016, ranking 52nd in the world and accounting for just 0.021 per cent of the world’s total reserves.
Hours after imposing 25 per cent tariffs on India, US President Donald Trump on Wednesday (Jul 30) announced a new deal with Pakistan, adding that the United States will work with Pakistan on “developing their massive oil reserves”. Trump said that his administration is in the process of choosing the oil company that will lead the “partnership”. Trump also suggested that maybe Pakistan will sell oil to India one day. His recent remarks have raised a question: Does Pakistan really have “massive” oil reserves as the US president is claiming?
In a post on his Truth Social platform, Trump wrote, “We have just concluded a Deal with the Country of Pakistan,” announcing the latest deal with India’s neighbour. “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.” He further added, “Who knows, maybe they'll be selling Oil to India some day!”
Does Pakistan have ‘massive’ oil reserves?
According to the data on Worldometer, Pakistan has 353,500,000 barrels of oil reserves as of 2016, ranking 52nd in the world and accounting for just 0.021 per cent of the world’s total reserves. The country has a consumption of 556,000 barrels per day and a daily oil production of 88,262 barrels per day. Without imports, Pakistan would have about 2 years of oil left. According to a 2021 report by the International Trade Administration of the US (ITA), Pakistan produces only about 20 per cent of its crude oil requirements and imports the remaining 80 per cent as of 2019.
A month ago, Pakistan’s state-owned Oil & Gas Development Company (OGDCL) exploration firm found new oil and gas reserves in the Sindh province. Apart from this, ODCL has made at least two significant discoveries of reserves in Khyber Pakhtunkhwa and Punjab since last year.
In September 2024, Pakistan reportedly found large deposits of natural gas and oil reserves in its territorial waters following a three-year survey. Some estimates have suggested Pakistan’s newly discovered reserves can make it rank among the world’s top four reserves, after Venezuela, Saudi Arabia, and Iran.
Trending Stories
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
&im=FitAndFill=(700,400))
)
)
)
)
)
)
)
)
&im=FitAndFill=(700,400))
)
However, none of the claims has been substantiated yet, and no commercial drilling has confirmed the existence, size, or quality of the reserves. Experts have cautioned that Pakistan’s oil reserves lack development plans, proven recoverability, or commercial viability. In addition, developing these reserves could cost $5 billion and half a decade to just confirm and begin development of the sites. Following this, building an infrastructure would cost even more capital. Moreover, given Pakistan’s ongoing economic crisis, which includes a $126 billion external debt and an energy import cost of $17.5 billion, it further complicates development projects.
