Challenges faced by the sector The increasing importance of services sector in the global value chain has created challenges for policymakers to understand its role and enable policy to support competitiveness of national firms. Countries usually measure trade in services through the balance of payment maintained by the central banks.
This would require Pakistan to facilitate foreign direct investment and take measures for ease of doing business. An analysis shows that the share of agriculture has been declining gradually over time from In the first stage of transformation, the decline in the share of the agriculture sector has been seen to be compensated by an almost equal increase in industry, whereas share of services sector has remained stagnant.
This trend where services sector, domestic and imported, being a significant enabler in the manufacturing and production of goods, has led to the servicification of manufacturing and reclassification of industrial activities such as purchase, production, marketing, sales and customers relationship.
This ranking is an important barometer used by public and private sectors globally to make economic and investment decisions. Cross country data reveals that structural transformation of most countries has been Services sector in pakistan.
It complements the production process and is considered the glue that binds the various segment and components of the finished goods.
This study also quantified the impact on barriers Services sector in pakistan import of services and concluded that there was a direct relationship between restrictions on the import of services and trade in manufacturing goods. This should really come as no surprise considering the fact that the services sector is the largest and fastest growing sector in the world economy, accounting for the largest share in total output and employment in most developed countries.
The value of services in world exports has increased Inthe ranking of Pakistan slipped from to in the list of countries. Pakistan would also be required to liberalise visa regime and work permits so that professional from abroad can visit Pakistan and render professional services for national firms.
We can thus conclude that manufacturing and export of goods is dependent on the availability of competitive services both domestic and foreign. The scholarship on the subject has sufficient empirical evidence that just by reducing import tariff are not sufficient for export competitiveness.
The sector also has strong backward and forward linkages with other sectors of the economy and contributes significantly to the cross border trade. The most unique factor about the billion-dollar club is that the bulk of the companies are not from the agri sector. The oil marketing companies here are big because we have a power demand or they are so big and still we have a power shortfall?
This implies that the services sector has in most cases gained momentum at the expense of agriculture. In fact, the growth rate of services sector is higher than the growth rate of agriculture and the industrial sector and it now accounts for one third of total employment.
It means that countries that have placed restrictions on the import of services have undermined the capacity of their national manufacturing firms in exporting goods. Manufacturing giants and agriculture are largely missing from the list. But they are from the services sector.
It is important for the policymakers to realise that global competiveness is achieved not by defensive or protective approaches but through aggressive and bold steps by liberalising trade both goods and servicesparticularly in Mode 3 and 4 of the supply of services.
In case of Pakistan, the share of services is increasing in all sectors of the economy. As the production process shows increasing fragmentation, the services sector is also scattered globally where advancement in information technology and communications have made it mobile and cost effective.
I am not sure what to infer from this. It is because of its strong linkages with other sectors of the economy that the growth of the services sector can be taken as an indicator of the strong potential for overall economic growth.
However, the content of the domestic services in the goods manufacturing for export is difficult to quantify. Since then the trend has been even more acute. Mode 3 is the service by firms through physical presence in a foreign country and Mode 4 involves movement of professionals from one country to another for rendering services.KARACHI: The services sector, which according to the World Trade Organisation (WTO) is the fastest growing sector of the global economy, contributes 70% to the global output.
It also accounts for a quarter of the total global. The services sector has provided steady support to Pakistan’s economic growth. It share in GDP now stands a more than 50 percent.
The paper analyses its continuation in the growth of the economy in general and the development of trade and genera tion of employment in particular.
The study. The major divisions of the service sector in Pakistan include: Public Administration and Defence, Ownership of Dwellings, Wholesale & Retail Trade, Finance and Insurance, Transport Storage & Communication and Community, Social & Personal Services.
From the year tothe service sector of Pakistan has grown by per cent.5/5(1). Services sector pakistan 1. Service Sector of PakistanPresentation by:Open Academy 2.
The Service Sector in Perspective• The Service sector accounts for 60% of global GDP and 30% of global employment (World Development Indicators).• Service sector accounted for % of GDP in FY (Economic Survey of Pakistan).
The share of service sector has increased from 39% of GDP in to % of GDP intherefore the service sector is the largest contributor to the GDP of Pakistan. Pakistan Bureau of Statistics Statistics House, Mauve Area, G-9/1, Islamabad, Pakistan E-mail: [email protected]@killarney10mile.comDownload