A New Dawn for US–Pakistan Energy Cooperation;

A New Dawn for US–Pakistan Energy Cooperation; Turning Potential into Prosperity for South Asia.

When Pakistan’s Prime Minister Shehbaz Sharif sat down with U.S. President Donald Trump in the Oval Office, the headlines focused on the symbolism. But beneath the photographs lies something more substantive: a chance to reshape regional energy dynamics through practical cooperation rather than political posturing. If both sides seize it, this could be the beginning of an economic transformation reaching far beyond Pakistan’s borders.

Moving Beyond Old Narratives

For decades, US–Pakistan relations have been dominated by security and counterterrorism. This new chapter focuses on trade, investment and, crucially, energy. Pakistan’s import bill for oil and refined products drains its foreign exchange reserves, while U.S. energy producers are eager for reliable markets and strategic footholds in South Asia. A pragmatic alignment of needs and resources is finally emerging.

The Core Interests

For Pakistan, the goals are clear: reduce dependence on imported fuels by boosting domestic exploration; modernize refineries and pipelines; attract foreign investment; and stabilize the energy sector, which underpins industrial growth and job creation.

For the U.S., this is a chance to export more crude oil, technology and know-how; support American companies in drilling and refining; and strengthen influence in a region where energy demand is booming and competition is fierce.

What’s Already on the Table

The Sharif–Trump meeting was followed by announcements of new trade and investment deals. Pakistani refiners, such as Cnergyico, are preparing to import U.S. light crude for the first time. Washington has signaled support for American firms to participate in Pakistani oil and gas exploration, and Islamabad has invited U.S. capital into its agriculture, minerals and energy sectors.

There is even talk of Pakistan acting as a conduit for oil flows into India and other markets — an idea once unthinkable but increasingly discussed in policy circles. For a region hungry for affordable energy, the notion of Pakistani and U.S. companies co-marketing crude to South Asian buyers could be transformative.

Pakistan’s Reserves: Promise and Reality

Recent government figures show Pakistan’s proven oil reserves rising to roughly 243 million barrels, with gas reserves near 18 trillion cubic feet. These are significant but not yet game-changing. The real opportunity lies in unexplored offshore fields and under-exploited onshore basins. With U.S. technology, investment and risk-sharing, these prospects could move from speculation to production — but that will take years of steady work and regulatory stability.

Regional Impact: Energy as a Bridge

If done right, this cooperation could soften the sharp edges of regional rivalries. Energy trade creates mutual dependence, jobs and cross-border infrastructure that make conflict costlier and peace more profitable. An oil partnership between U.S. firms and Pakistan could provide India with an additional, politically neutral supply option. Such arrangements won’t erase political disputes overnight, but they could lay the groundwork for a more interconnected South Asia.

The Conditions for Success

To convert these promises into reality:

• Pakistan must offer transparent, predictable rules for foreign investors and ensure security in exploration areas.

• U.S. companies must commit to long-term partnerships, technology transfer and training, not just quick sales.

• Both governments should treat this as an economic and developmental project — not a bargaining chip in security policy.

• Pricing, quality standards and logistics for any future exports to India or elsewhere must be commercially competitive.

A Practical, Not Political, Opportunity

Energy is the lifeblood of development. By shifting the focus from defence to development, Washington and Islamabad can send a powerful message: cooperation can be built on shared prosperity, not just shared fears. In a time of global uncertainty, such a pivot would not only benefit both nations but also provide South Asia with a model of constructive engagement.

If Pakistan and the United States follow through on what was set in motion in the Oval Office, they won’t just sign another memorandum of understanding. They could launch a new era where oil and energy become engines of growth, stability and peace in a region that desperately needs all three.