Pakistan’s Foreign Minister Shah Mahmood Qureshi will conclude a three-day visit to Spain today. Qureshi met with the Spanish Minister
Pakistan’s Foreign Minister Shah Mahmood Qureshi will conclude a three-day visit to Spain today.
Qureshi met with the Spanish Minister of Foreign Affairs Jose Manuel Albares and members of parliament. The ministers discussed topics including bilateral and economic relations. As of 2020, Spain is the fourth-largest economy in the EU, with Pakistan providing it with its eighth-largest source of imports: $764 million worth of exports, primarily in textiles and raw cotton. Spain primarily exports gas and pipes to Pakistan.
The IMF lowered their projected expansion of Spain’s economy from 5.7% to 4.6% due to the lingering effects of the pandemic and global supply bottlenecks.
For Spain, Pakistan’s domestic gas shortage has caused a bottleneck, which is impeding the production of textiles in Pakistan and limiting their exports to Spain.
In response to these concerns, the ministers will likely discuss increasing trade and diversifying exports which would benefit them both. Spanish Embassy Economic and Commercial Attache to Pakistan, Aitor Santiago Garin, has suggested trade volumes could be higher and exceed just textiles. If the IMF projections hold true, expect tariffs to be lowered, albeit slightly, to maintain trade flows without straining either the Pakistani or Spanish economy.
Wake up smarter with an assessment of the stories that will make headlines in the next 24 hours. Download The Daily Brief.