The United States’ top diplomat in Pakistan has said American companies are showing “strong and growing interest” in Pakistan’s oil, gas, and minerals sector, following US President Donald Trump’s surprise remarks last month about the country’s “massive” energy reserves, Bloomberg reported.
The comments came after Petroleum Minister Ali Pervaiz Malik met with US Chargé d’Affaires Natalie A. Baker in Islamabad to discuss boosting energy sector cooperation. Malik confirmed that discussions with US firms regarding upcoming exploration block bidding rounds are already underway.
“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,” Baker said, adding that the embassy would “actively facilitate direct linkages” between businesses in both countries.
Trump’s late-July social media post — claiming Pakistan holds “massive oil reserves” — caught industry experts by surprise, contradicting existing geological surveys. His remarks also coincided with rising US-India trade tensions, as Washington criticized New Delhi for continuing to import Russian crude. In a jab at India, Trump even suggested Pakistan could one day supply oil to its neighbor.
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Experts Skeptical
Energy analysts warn that Trump’s claims appear more political than technical. “If Pakistan had massive oil reserves, international majors wouldn’t have exited in such large numbers,” said Moin Raza Khan, former CEO of Pakistan Petroleum Ltd.
Foreign energy giants have steadily withdrawn from Pakistan:
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Shell Plc exited in 2023 after 75 years.
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Kuwait Petroleum Corp. ended its four-decade presence in 2024.
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TotalEnergies SE pulled out of a fuel venture.
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Exxon Mobil and Eni Spa exploration efforts in the Arabian Sea yielded no significant finds.
The most recent major discoveries were Makori East (2011) by Hungary’s MOL Group and Nashpa (2009) by OGDC. Officials often cite a 2013 US Energy Information Administration estimate of 9.1 billion barrels of recoverable shale oil, but skepticism persists.
Pakistan’s Energy Push
Despite challenges, Islamabad continues to court foreign investors. A new bidding round for 40 offshore exploration blocks, including in the Indus Basin, has been announced. Bids are due in October 2025, with OGDC confirming discussions with US companies.
Any significant discovery would be a much-needed boost. Pakistan’s oil production has declined since peaking in 2018, and the country currently spends around $11 billion annually on oil imports — nearly one-fifth of its total import bill, according to central bank data.
