One of the distinct features of the global economy today is the rising importance of services, with their growth in output and trade outpacing that of goods, and new and innovative services entering the world trade arena.
Abstract
[One of the distinct features of the global economy today is the rising importance of services, with their growth in output and trade outpacing that of goods, and new and innovative services entering the world trade arena. This phenomenon is greatly facilitated by the conclusion of the WTO General Agreement on Trade in Services (GATS) in 1994 which, by setting out rules and disciplines for services transactions trade liberalisation commitments by members, has enlarged the avenues for mutually beneficial trade. Services also occupy a key position in domestic economies as in many developed and developing countries more than half of the national output is being generated by the services sector. The contribution of services in Pakistan’s economy is also large and expanding rapidly. (It grew from 47 percent of gross domestic product [GDP] in 1981 to 52 percent in 2006). Though the present level of Pakistan’s trade in services is modest, it has substantial growth potential if appropriate promotional measures are taken and a congenial atmosphere is developed. After giving a brief background of the services sector and ongoing negotiations, this paper discusses Pakistan’s trade potential in the services sector in the backdrop of global developments and proposes a strategy to exploit the potential. – Author]
