ISLAMABAD, Nov 30: Pakistan should further open up its services sector for foreign services providers but it should be linked with the condition of getting greater market access for domestic services This was stated by Pakistan’s chief economist Fasih Uddin at a talk on “WTO: Trade in Services — Pakistan’s Perspective” here on Wednesday. The talk was organized by the Institute of Policy Studies.

Mr Fasih, however, asked the government that before liberalizing more sectors, it should first discuss the issue with all the stakeholders concerned.

Pakistan in the past, he said, had liberalized the services sector unilaterally under the pressure of the International Monetary Fund without getting anything in return from other countries.

“We have not developed any services sector from export point of view. The government and the private sector only focus on the services sector to meet local demands,” he remarked.

The special session of the Council for Trade in Services recently issued a draft ministerial text on services for the upcoming Hong Kong ministerial conference.

He advised Pakistani negotiators to not only adopt a reactive approach, particularly in trade in services, but also there is a need to be proactive in offers in the services sector to other countries.

He was of the opinion that openness of services improved the quality of services to domestic consumers coupled with attracting huge investment in the country. However, he said the liberalization process should be followed by a strong regulatory mechanism to watch the interest of consumers as well.

The former economist said Pakistan had the potential to export communication, transportation, business, tourism, commercial, health, construction and architecture services to the markets of both developed and developing countries in case barriers were lifted in those markets.

Having a 52 per cent share in the GDP, he said, the development of the services sector could provide further opportunities of employment as against the current 40 per cent of employment.

Quoting example of the United State and Hong Kong, he said the services sector had provided employment to 75 per cent and 95 per cent, respectively, in these countries.

He said Pakistan should focus on getting more in mode 4 (movement of natural person) from rich countries for its skilled and unskilled workers. However, he said for an effective policymaking there was a need for accurate and factual data which was not available on export and import of services.

“And there should be greater inter-ministerial linkages on all sectors to discuss all pros and cons of any sector before making any commitment at international fora,” he added.