The top US diplomat in Pakistan has stated that American companies are showing “strong and growing interest” in Pakistan’s oil, gas, and minerals sector, following surprising remarks by former US President Donald Trump, who claimed the country holds “massive” energy reserves.
The comments came after Petroleum Minister Ali Pervaiz Malik met with US Chargé d’Affaires Natalie A. Baker in Islamabad to explore greater energy sector cooperation. According to the ministry, discussions are already underway with US firms regarding bidding rounds for exploration blocks.
“There is a strong and growing interest from US companies in Pakistan’s oil, gas, and minerals sector, in line with the vision of President Trump,” said Baker, adding that the embassy would support direct business linkages. No additional details were shared by the US embassy.
Trump’s late-July social media post about Pakistan’s “massive oil reserves” surprised energy analysts, as it contradicted geological data and came at a time of declining foreign investment in Pakistan’s energy sector. The statement was also viewed in the context of Trump’s criticism of India for importing Russian oil, with a jab suggesting Pakistan might eventually sell oil to its neighbor.
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However, energy experts have warned against taking such claims at face value. Moin Raza Khan, former CEO of Pakistan Petroleum Ltd., noted that if Pakistan had significant reserves, global energy majors wouldn’t have exited the country. Major players like Shell, Kuwait Petroleum Corp., and TotalEnergies SE have all withdrawn in recent years, while past exploration efforts by Exxon Mobil and Eni Spa have failed to produce major discoveries.
The last significant finds in the country occurred over a decade ago—Makori East (2011) by Hungary’s MOL Group, and Nashpa (2009) by OGDC.
Although Pakistani officials reference a 2013 US EIA estimate of 9.1 billion barrels of recoverable shale oil, many analysts remain skeptical. Compared to global giants like Saudi Arabia, Russia, and the US, Pakistan’s proven reserves are limited.
Still, the government is pushing to revive interest. A new bidding round for 40 offshore exploration blocks, particularly in the Indus Basin, is now open, with bids due in October 2025. Officials at OGDC confirmed active talks with US firms.
A meaningful energy discovery could provide significant relief for Pakistan, which spends around USD $11 billion annually on oil imports—nearly 20% of its total import bill, according to the central bank.
