5. What is Service industry?
“An industry that produces services rather than
goods”.
The share of the services sector has reached to
58.1 percent in 2013-14. Services sector
contains six sub-sectors including: Transport,
Storage and Communication; Wholesale and
Retail Trade; Finance and Insurance; Housing
Services (Ownership of Dwellings); General
Government Services (Public Administration
and Defense); and Other Private Services
(Social Services).
6. The Services sector has witnessed a growth
rate of 4.3 percent as compared to 4.9 percent
last year. The growth performance in services
sector is broad based, all components
contributed positively in growth, Finance and
Insurance at 5.2 percent, General Government
Services at 2.2 percent, Housing Services at 4.0
percent, Other Private Services at 5.8 percent,
Transport, Storage and Communication at 3.0
percent and Wholesale and Retail Trade at
5.2%.
8. Wholesale and retail trade contributes
18.6% to the GDP and has a 31.9% share
in the services sector, according to the
Economic Survey of Pakistan 2013-14. It
grew by a respectable 5.2% in the last
financial year, compared with 3.38% a
year before.
9. Private consumption in Pakistan has
increased over the last few years in spite
of slow economic growth. The size of the
retail market is estimated to be
somewhere between Rs3.5 trillion and
Rs4 trillion.
12. The chart above helps to explain the share of
wholesale and retail sector in GDP % from 2009
to 2014. In year 2009-10 this percentage was
19.1% but in 2010-11 it decline by 0.3%. As in
the year 2011-12 and 2012-13 it further decline
by 0.4% from the previous year but contribute
same share in GBP which is 18.4%. In the last
year 2013-14 this sector show growth of 0.2%
from the previous year and contribute 18.6%
share in total GDP.
13. It is the basic importance in economic
development. Share of transportation
and communication is 3.5% in budget
2013-14.
It consist of 2 subsectors.
Transportation.
Communication.
14. In 2013-14 Pakistan’s total road network is
around 263,775 Kms which carries over 96
percent of inland freight and 92 percent of
passenger traffic. Length of NHA road network
is around 12,131 kms comprises of 39 national
highways,motorways, expressway and
strategic roads. During current financial year
2013-14, NHA executed 83 development
projects costing Rs. 615.2 billion. Government of
Pakistan has allocated Rs. 63.04 billion in the
Federal PSDP for construction of roads, river
bridges, tunnels, flyovers and interchanges.
15. History
Pakistan railway came into existence on May
30,1861, when Karachi and Kotri were linked
by Rail. In 1947,North Western Railway was
transferred to Pakistan. It had a route
mileage of 4999.In 1974 Pakistan Western
Railway was renamed as Pakistan Railway.
In 2013-14 the network of Pakistan Railway
comprises of 7,791-route km, 423
locomotives, 1,700 passenger coaches and
16,179 freight wagons.
16. At the time of independence there
were 3036 post offices in country. At
present , there are 15413 post offices.
Out of this 13146 are located in rural
areas and 2267 in urban areas.
Postal services in country are
provided by government, Pakistan Post
Office Department, Which is headed by
a Director –General .
17. Mobile and fixed-line telephone subscribers (per
100 people) in Pakistan was reported at 55.65 in
2008, according to the World Bank. Mobile and
fixed-line subscribers are total telephone
subscribers (fixed-line plus mobile).This page has
the latest values, historical data, forecasts, charts,
statistics, an economic calendar and news for
Mobile and fixed-line telephone subscribers (per
100 people) in Pakistan.
19. The chart above helps to explain the share of
Transport and communication sector in GDP %
from 2009 to 2014. In year 2009-10 this
percentage was 13.3% but in 2010-11 it decline
by 0.2% and contribute 13.1%. In year 2011-12
its contributed more than previous year but in
the later years it shows a decline with constant
rate 0.1% and contribute 13.1% and 13.0 % in
year 2012-13 and 2013-14 respectively.
20. Economic development can be achieved
into two ways:-
Use existing resources more fully but
without any change in production
method.
Combine already employed resources in
better ways.
21. Financial services include Banks. Banks are
also two subtypes
State Bank of Pakistan.
Commercial Banks.
In 2013-14 share of finance and insurance
is 13.0% in GDP and 9.6% in services
sector
24. The chart above helps to explain the share of
Finance and Insurance sector in GDP % from
2009 to 2014. In the first three years 2009-
10,2010-11 & 2011-12 it declines gradually but in
last two years this percentage was 13.3% but in
2010-11 it decline by 0.2% and contribute
13.1%. In year 2011-12 its contributed more
than previous year but in the later years it
shows a decline with constant rate 0.1% and
contribute 13.1% and 13.0 % in year 2012-13
and 2013-14 respectively.
25. In growth rate share of housing services are 4.0%.
According to the certain estimates the population
of Pakistan is over 166 million3; increasing
approximately at the rate of 2% per annum4.
Urban population as a percentage of total
population has been recording a growing trend.
There are approximately 10 urban centers in
Pakistan with Karachi and Lahore, the two biggest
centers, alone constitute 62% of the total
population of these 10 cities.
26. Population density has also increased from
142 persons per km2 in 1990s to 206 persons
per km2 by 2007. Of this highly
concentrated urbanization trend, over 45%
of the total urban population is believed to
be living in slums. This high concentration of
slum households in Pakistan can be
associated with a variety of factors,
including lack of investment in
infrastructure, housing sector, poverty and
instability.
29. This chart above helps to explain the share
of Housing services sector in GDP % from
2009 to 2014.In the first three years 2009-
10,2010-11 & 2011-2012 ,it contributes same
share in GDP which is 6.7% and in further
years 2012-13 & 2013-14 it contributes same
shares which is 6.8%.
30. In this Public Administration Defense. In
2012-13 in GDP share of general
government is7.2% In 2013-14 in GDP
share of general administration is 7.0%. In
2013-14 GDP at current prices are
1651080 Million. Moderate growth
performance in General government
services are 2.2%.
31. Sector 2009-10 2010-11 2011-12 2012-13 2013-14
General
governme
nt services
5.7 6.2 6.7 7.2 7.0
33. This chart above explain the share of
General Government Services sector in
GDP% from 2009-14.In first year the
percentage is 5.7% but in 2nd year it
contributes 6.2 which further increases that
is 6.7%.In later year it gradually increases
7.2%.In last year 2013-14 it declines that is
0.2% .
34. In the concluding marks we get some
interesting points that we get from our
research on the topic of services industry
that next era of the economy will more
be dependable on the services , people
will be more service oriented so if we
give proper attention to this sector we
can be able to put huge investment in
the economy of Pakistan ,
35. which will increase per capita income,
GDP etc. and hence in turn it will
generate more jobs for the Pakistanis
graduates in the home country which will
also have a positive impact on Pakistan
economy
36. Following are the recommendations which
we found suitable to give
Infrastructure should be better.
More incentives should be given to services
industry.
Less tariffs and barriers on service industry.
No strict government policies for the the
services industry.
Services industry works well if they will be
privatized.
