“Spain Offers an Amount of 10 Million Euros to Pakistan for Micro Finance.”

ISLAMABAD, March 20, 2006 - During the recent visit of Mr. Miguel Angel Moratinos, Minister of Foreign Affairs of Spain, the Government reached an agreement with Spain for an amount of 10 million Euros to facilitate micro finance programme to assist small projects to increase income in rural areas and boost the creation of the more jobs.

Spanish Ambassador, Mr. Jose Mari Robles and Spanish Commercial Attache, Mr. Francisco Alfonso visited Mr. Omar Ayub Khan, Minister of State for Finance to discuss the modalities and the implementation of this programme. Spanish Ambassador has expressed the firm position of his government to develop close economic relations with the Government of Pakistan. He emphasized his gratitude to continue to work with the Minister Omar Ayub Khan and the Ministry of Finance for the future economic cooperation.

Mr. Omar Ayub Khan briefed the Ambassadors about the funds the current stage of the micro finance activities in Pakistan and his gratitude to work with Spain to develop close economic ties. Mr. Omar refereed to the successful institutions that are currently implementing micro-finance in Pakistan.

Omar Ayub has also briefed the Ambassador about the Competitiveness Support Fund (CSF) which is supported by the USAID and Government of Pakistan to support innovation-driven economic growth, to improve competitiveness index of the economy.

Mr. Omar also referred to his upcoming trip to Europe, and Asia to meet with relevant government agencies, private sector representatives and the heads of the key universities to discuss their participation in and contribution to the Regional Conference on Competitiveness and Economic Growth in Asia and Pacific to be held 14–16 May in Islamabad.

As is done for all TCI Conferences, the co-hosting country must organize a tour to those countries from which it wishes to generate participation at the TCI sponsored conference. Mr. Omar will also visit Spain to meet the Ministry of Finance, the Ministry of Trade, Chamber of Commerce and Industry, the SME development agency, the Asian House which is the new Government Agency responsible for economic co-operation with Asia and Pacific.The visit to the European countries is planed to take place on the first week of April, 2006

Both, the Minister and Spanish Ambassador have also discussed other bilateral financial matters such as bilateral tax treaty between Spain and Pakistan. In this regard, a Pakistani delegation is schedule to pay a visit to Madrid on 24–28 April to try to conclude the treaty. Mr. Omar Ayub Khan has asked the Ambassador to consider increasing the technical assistance aid programme towards Pakistan through the UN institutions that Spanish Government is contributing to. Ambassador Robles agreed to look at it further and indicated that an amount of US$100.000 is scheduled to be available through the UNDP programmes. The Spanish Ambassador expressed his strong support towards the proposal of the PIA having direct flights between Madrid and Islamabad which will help to increase more economic and commercial ties between two countries as well as Pakistani emigrants living in Spain who will promote the tourism sector in Pakistan as well.