WASHINGTON/ISLAMABAD (Reuters) -The U.S. and Pakistan have struck a deal that will result in lower tariffs for the South Asian nation as well as an agreement in which Washington will help develop Islamabad's oil reserves, the two sides said.

"We have just concluded a Deal with the Country of Pakistan, whereby Pakistan and the United States will work together on developing their massive Oil Reserves," U.S. President Donald Trump wrote on social media on Wednesday. 

"We are in the process of choosing the Oil Company that will lead this Partnership."

Trump's social media post did not provide further details.

Pakistani Foreign Minister Ishaq Dar also confirmed the deal's conclusion on social media, without elaborating further.

Trump did not mention any agreement on tariffs. But Pakistan's finance ministry said on Thursday the trade deal "will result in reduction of reciprocal tariffs especially on Pakistani exports to the United States", but did not give details of what the tariffs would be.

"This deal marks the beginning of a new era of economic collaboration especially in energy, mines and minerals, IT, cryptocurrency and other sectors," it said.

Pakistan faced a potential 29% tariff on exports to the United States under tariffs announced by Washington in April on countries around the world. Tariffs were subsequently suspended for 90 days so negotiations could take place.

Last week, Dar said the U.S. and Pakistan were "very close" to a trade deal that could come within days, after he met with Secretary of State Marco Rubio on Friday. 

Dar and Rubio had discussed expanding trade and ties in critical minerals and mining, both sides said after that meeting. Other Pakistani officials have also visited the U.S. in recent weeks for talks.

Under Trump, Washington has attempted to renegotiate trade agreements with many countries that he threatened with tariffs over what he calls unfair trade relations. Many economists dispute Trump's characterization.

U.S. total goods trade with Pakistan was an estimated $7.3 billion in 2024, according to the website of the office of the U.S. trade representative, up from around $6.9 billion in 2023. The U.S. goods trade deficit with Pakistan was $3 billion in 2024, a 5.2% increase over 2023.

Washington has also aimed to build stronger ties with Asian powers in recent years to counter its rival China's influence in the region. Pakistan is designated by Washington as a "major non-NATO ally."

Trump also said Washington was still negotiating with Pakistan's rival India on trade after announcing earlier in the day that the U.S. will impose a 25% tariff on goods imported from India starting on Friday. 

Pakistan has also recently said it "appreciated the pivotal role" by Trump and Rubio "in de-escalating tensions between Pakistan and India by facilitating a ceasefire."

Trump has repeatedly taken credit for the India-Pakistan ceasefire he announced on social media on May 10 after Washington held talks with both sides. India disputes Trump's claims that the ceasefire resulted from his intervention and trade threats.

India's position is that New Delhi and Islamabad must resolve problems directly with no outside involvement.

The latest escalation in the decades-old India-Pakistan rivalry was triggered by a deadly April 22 militant attack in India-administered Kashmir that India blamed on Pakistan. Islamabad denied responsibility. India struck Pakistan on May 7 and the two nations exchanged deadly hostilities until the ceasefire was declared on May 10.