ISLAMABAD, Dec 21: Pakistan should seek greater market access for its services sector to rich countries to enhance export of services to these countries under the General Agreement on Trade in Services (GATS).
The 148-member WTO countries are supposed to submit their initial offers and request list to the WTO Secretariat by May 2005. Some of the countries have already made initial offers and requests for different services sector.
Talking to Dawn, Roshan Malik, a researcher on trade in services, said during the current round of negotiations more areas of Pakistan's interest should be identified for giving access to foreign service suppliers as well as getting market access for such exports.
Interestingly, the commerce ministry has yet to start a full-fledged consultation with the stakeholders concerned to discuss different sectors for making offers to service providers of other member countries.
Mr Malik fears that in case Pakistan is not ready to make appropriate offers to the foreign service providers, then in future due to the pressure from developed countries it will offer access in those services, which will harm the interest of domestic consumers.
Pakistan should also provide due protection to local consumers by enacting consumer protection laws through which they could easily monitor services of foreign countries.
In the absence of any protection, it is not advisable for Pakistan to open its services sector, particularly those related to food and public health for the foreign investment, which will have negative implications for the poor, the dispossessed section of society.
Pakistan, along with other countries, faces a series of barriers to export its services to developed countries - prohibition of access to services markets - nationality, residency or visa requirements, use of economic needs tests, lack of recognition of education standards, price-based measures, entry and exit taxes, visa fees, tariffs on goods used in service, subsidies granted in developed countries, technical standards and licensing requirements, and the lack of transparency in government measures.
Until these and other barriers remove, it will be difficult for Pakistan to get maximum benefits from exporting its services to developed countries, especially in the areas of allowing movement of natural persons.
Pakistan has made only six liberalization commitments out of 12 sectors under the GATS. These six sectors include business services, communications, construction/engineering services, financial services, health and tourism.