Miss Farhat Iqbal
Mehak Liaqat Ali
BBA Sem 5
Kinnaird College for Women, Lahore
Contribution of Services Sector in Economy of Pakistan
Services sector is largest and fastest growing sector in the world economy. The share of services sector in total GDP is 47 percent in low income countries, 53 percent in middle income countries and 73 percent in high income countries. It is expected that rising trend of services sector would continue, to gain more and more importance through advancement in the area of knowledge based and skill oriented activities. For Pakistan, share of services are increasing in all sectors of economy from time to time. In fact, the growth rate of services sector is higher than agriculture and manufacturing sector. 1/3rd of total employment and 54% of GDP is affiliated with services sector. Services sector provides essential inputs to agriculture and manufacturing sector. Classification of Services Sector:
Services sector is highly diversified; it consists of 4 major sectors in Pakistan: distributive, producer, personal and social services. Distributive services is further distributed into subsectors i.e., transport, communications and trade sector. It provides convenience to consumer, household and profits for traders. Producer services consist of financial sector which provides the capital for industrialist and business community. Personal services provide public goods and shelter to citizens. The social services sector is also divided into further two subsectors (1) public administration and defense, (2) health and education facility. Global Perspective of Services Sector
Services is the fastest growing sector that account 69 % of global output, 35% of global employment and about 20 % of global trade. A service value has increased by 41.7% value of good has increased by 35.5% during 1975-2005. The...