PAKISTAN TRADE POLICY PROJECT
(DFID and AASR)
TRADE IN SERVICES
Prepared for the Ministry of Commerce, Government of Pakistan
TRADE IN SERVICES
List of contents:
2. Summary of Recommendations
3. REVIEW OF DOMESTIC SERVICES PROVISION AND EXPORTS FROM PAKISTAN.
The current structure of services provision and exports from Pakistan.
Service- specific and mode –specific trade data.
Availability and comprehensiveness of services trade data for imports and exports in Pakistan.
Detailed recommendations o an optimal data and analysis framework for GATS reporting and policy formulation requirements in future.
4. REVIEW OF PRIOR COMMITMENTS BY PAKISTAN AND ITS TRADING PARTNERS
A survey of domestic policies and regulations affecting market access, national treatment, MFN exemptions and services imports to Pakistan.
Interpretation of Pakistan’s current GATS Schedule of Commitments in terms of liberalizing services imports and the impacts on domestic services providers.
Assessment of the compatibility of current policies with Pakistan’s services commitments.
A review of the research on commitments made by WTO members by sectors and modes of supply, focussing particularly on sectors and modes of supply, focussing particularly on sectors and modes of potential interest to Pakistan.
5. FORMULATION OF POTENTIAL REQUESTS IN THE POST DOHA ENVIRONMENT
Assessment of Pakistan’s interests in relation to sectors and modes of supply, including those set out in WTO position paper S/CSS/W/131.
Identification of existing and potential barriers to Pakistan’s services exports.
Identification of Pakistan’s potential services exports sectors and modes of supply.
An overview of the positions of other members and (groups of members) in relation to the other services negotiations, with a view to identifying potential strategic negotiating alliances for Pakistan.
Definition of potential requests.
6. FORMULATION OF POTENTIAL OFFERS IN THE POST DOHA ENVIRONMENT
Identification of domestic services sectors which should be opened up to foster domestic development and growth.
Identification of domestic services sectors in which protection should be maintained.
Assessment of sectors and modes of supply in which autonomous liberalization by Pakistan has outpaced Pakistan’s GATS bindings and in which there is therefore existing “negotiating space” available to GOP.
Definition of potential offers.
This DFID- financed study has been prepared, inter alia,:
To analyze present policies of Pakistan relating to its Services Sector, and to assist the Ministry of Commerce to participate more effectively in the current round of negotiations under the GATS;
Bearing in mind the recent rapid technological advances in transport, computing and telecommunications including the development of Internet and electronic commerce, to lay the foundations for a longer term approach to the Services Sector;
To recommend to the Government of Pakistan to adapt its statistical system to the new framework evolved by the United Nations Statistical Division, in collaboration with the OECD, the IMF, the UNCTAD and the WTO, for compiling statistics of international trade in services; and
To recommend an institutional framework that should design, in consultation with the private sector, short and long term policies to promote foreign investment, technological development and export of services.
This study consists of two volumes: Volume I has addressed all issues, except two, listed in its terms of reference. Volume II discusses the two issues excluded from Volume I, namely requests Pakistan has received from its WTO trading partners and possible responses of Pakistan to those requests. For the time being, Volume II remains a classified document.
The terms of reference of the study are reproduced in Annex I to this Introduction. This study has addressed every single issue recorded by the its terms of reference and followed scrupulously the prescribed sequence of discussion.
As required by these terms of reference, the following stakeholders were consulted during the preparation of this study:
The WTO Wing, Ministry of Commerce;
*The State Bank of Pakistan;
The Ministry of Industries and Production;
The Ministry of Science and Technology;
The Board of Investment;
The Securities and Exchange Commission;
*The Federal Chamber of Commerce and Industry; and
*The Lahore Chamber of Commerce and Industry.
With the approval of the Ministry of Commerce, the Consultant also met the following additional agencies:
The Pakistan Engineering Council, Islamabad;
*The Institute of Chartered Accounts, Karachi;
*The Institute of Bankers;
The Ministry of IT and Telecommunications including PTA and PTCL;
The Ministry of Finance; and
The Ministry of Education.
*The NESPAK, Lahore
The Consultant visited Lahore from 16 to 17 January and Karachi from 20 to 22 January, 2003 to meet the entities marked above with an asterisk. The names of the officials met are given in Annex II.
The Presentation required by the TORs was held on ……The following entities participated in this discussion.
This consultant wishes to record his great appreciation of the support given to him by the WTO Centre of the Ministry of Commerce in the preparation of this study. He is particularly grateful to the Ministry of Commerce for the confidence placed by it in his judgment and his sense of responsibility.