Spanish Envoy Calls for Deeper Collaboration Between Spain, Pakistan in Value Added Sectors

Ambassador of Spain to Pakistan Jose A. de Ory called on Minister for Finance Senator Muhammad Aurangzeb at Finance Division today. The minister discussed the cooperation and longstanding relations between the two countries. He gave an update on some of the indicators including building up of foreign exchange reserves to $9.4 billion, robust performance of the stock exchange, declining trend of inflation rates with CPI inflation clocking in at 12.6 percent in June 2024, and increase in foreign remittances by 7.7 percent as compared to last year. He also highlighted the successful conclusion of the 9-month Stand-By Arrangement (SBA) with the IMF and apprised about the government’s intention to continue with the economic reform agenda under a fund supported medium term program. He emphasized the commitment of the government to achieving economic stability by increasing tax to GDP ratio through increasing tax base, as tax collection during FY 2024 increased by 30 percent as compared to FY 2023, and improving the tax administration through digitization, fiscal consolidation, Energy Sector reforms, SOE reforms, privatization and efforts to increase FDI. It was further emphasized that export-led growth is the agenda of the government for which, along with traditional sector, agriculture and IT sectors are also being encouraged through different policies of the government. The Spanish Ambassador appreciated Pakistan’s macroeconomic stability and the government’s efforts towards the economic reform process for sustainable economic growth. He urged the government to enhance value addition in exports, emphasizing the potential for deeper collaboration between Spain and Pakistan in value added sectors.