Balancing Cost, Security, and Diplomacy: The Pakistan-US Oil Deal in Context

Pakistan has secured its crude oil import deal with the United States, marking a significant shift in its energy procurement strategy. This policy brief assesses the strategic, economic, and geopolitical implications of the U.S. deal compared to oil imports from traditional suppliers. It provides an analysis of trade terms, monetary costs, and strategic insights to guide Pakistan’s energy diversification efforts. The brief discusses the U.S. oil deal by evaluating the involved strategic, economic, and geopolitical options, offering a clear comparison with Pakistan’s existing oil import sources and supplier countries. It examines the economics of the trade terms, the financial costs, and the potential risks, delivering a comprehensive analysis of how this diversification could affect Pakistan’s energy security. The brief also examines energy sourcing, taking into account the stability of supply, price volatility, and long-term geopolitical stability. Finally, it presents policy considerations to shape Pakistan’s energy diversification plan, aiming for a secure, resilient energy future less vulnerable to external political and economic influences.