ISLAMABAD, March 22: The WTO Council Pakistan on Tuesday approved the offers list aimed at opening up almost all major sectors, sub-sectors to foreign services providers (FSPs) with a hope to increase the share of services in the domestic economy. Official sources told Dawn that the list was discussed and finalized in a meeting presided over by Commerce Minister Humayun Akhtar Khan, and participated by all federal secretaries from all ministries and divisions along with five federal ministers from relevant ministries. However, there was no representation from the private sector. The initial offers list would now be finally approved by the Economic Coordination Committee (ECC) of the federal cabinet to be headed by Prime Minister Shaukat Aziz shortly. The approved list would be submitted to the WTO secretariat.
Pakistan would have a period of around one month following the submission of the initial offer list for revising and submitting a final list by May 2005. The share of services in the GDP of Pakistan is now about 51 per cent. While the share of services in GDP of developed countries is about 75 per cent.
Elaborating further the initial offers, the officials said that it was agreed to remove all restrictions so that foreign computer companies could easily offer services in the areas of hardware, software, data processing; to open up research and development of natural sciences and social sciences for FSPs; to allow foreign companies investment in the real estate service; opening of rental and leasing service to foreign services providers.
In the communication services, it was agreed to further liberalize the telecommunications sub sector and courier services for FSPs. While in the construction and related engineering services, Pakistan has already made offers in the general construction work for buildings; general construction work for civil engineering; installation and assembly works and building completion and finishing works.
It was agreed to open up the distribution services—commission agent services, wholesale trade and retailing services and franchising for FSPs with a hope that competition in this sector might result into lowering the cost of doing business for other sectors.
The meeting also agreed to make offers in the education services to FSPs in the areas of higher education, adult education and tertiary education; opening of environmental services—sewage service, refuse disposal, sanitation and similar services. It was also agreed to further liberalize all insurance, banking and financial services for FSPs.
It was also decided to make offers to FSPs in the sectors of hospital service, social service, hotel, travel agency, libraries and museum. Meanwhile, an official announcement issued after the meeting said the commerce minister informed the council regarding the WTO negotiations relating to liberalization of the services sectors and sought their views regarding what stance Pakistan should adopt in these negotiations.
During the meeting the discussion centred on Pakistan’s considerable potential for export of services and it was therefore decided that during the course of these negotiations efforts should be made to seek market access for Pakistani service providers.
It was also pointed out that it would be in Pakistan’s overall interest to encourage foreign service providers to operate in the Pakistan’s market.
Such a situation would result in the up-gradation of the Pakistan’s service sector, which in turn would bring down the cost of doing business in Pakistan. Consequently not only Pakistani goods exports become more competitive but it would also enhance Pakistan’s capacity to export services, added the announcement.