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Country Case Study - Pakistan
 

By Tahir Hasnain

Liberalization of international trade in services through the movement of natural persons (Mode 4 under GATS - General Agreement on Trade in Services) remains one of the least negotiated issues of trade policy among the 149 members of the World Trade Organization (WTO). Economists believe that there is a basic convergence of economic interest between the developed and the developing world for liberalizing Mode 4. Yet the multilateral trading system has not facilitated greater worker mobility between the labor-surplus and labor-scarce countries. Developing countries, in fact, have surplus labor who are willing to move temporarily to work and despite this fact, movement of natural persons (MNP) accounts for less than 2 percent of services trade which is even less of GATS concessions.
 

The subject study was carried out for the Asia Pacific Regional Initiative on Trade, Economic Governance and Human Development – Asia Trade Initiative (ATI) to analysis Pakistan’s situation with regards to MNP. This study is part of the country project ‘Trade Initiative from a Human Development Perspective’ under the auspices of UNDP Pakistan and Ministry of Commerce – Pakistan to assess the human development implications of liberalizing trade in the temporary movement of natural persons (Mode 4) sector under the WTO/GATS framework. The project aims to provide support to the Government of Pakistan (GOP) and other stakeholders in ensuring that the country can strategically seize the opportunities of global economic and trade integration for advancing national progress in human development and poverty eradication. The project intends to hold a number of sectoral studies to address the issues faced by Pakistan in each sector in trade negotiations, identify their potential impact on human development (employment) in Pakistan, and recommend approaches at the national and international levels to maximize the positive impact on human development.  The subject study is one of these initiatives firmly oriented towards practical strategies in the specific negotiating context to devise strategies to enhance the ability of Pakistani workers to compete for international employment opportunities, and the contribution of MNP to human development in Pakistan.

Tahir Hasnain is Executive Director of Islamabad-Pakistan based “Economic justice and Development Organization (EJAD)”.  Mr. Hasnain has extensive experience in research and advocacy on issues related to trade, agriculture and sustainable development. In his 15 years career, Mr. Hasnain completed more than 40 significant research/advocacy tasks and participated in a number of international and national events.

Contents

Executive Summary; Acknowledgements; Acronyms and Abbreviations;
1 Introduction;
2 Existing Commitments on GATS: Mode 4;
3 Some Specific Problems with the Existing Commitments;
4 Experience of Selected Countries;
5 Labor Force and Employment Situation in Pakistan;
6 Issues of Skilled and Non-skilled Labor;
7 Pakistan’s National Policy Response;
8 Priority Service Sectors and Occupations for Pakistan;
9 Conclusions and Way Ahead for International and National Action;
Annexes, Notes; References.

The published paper is available with:

1.       Trade Initiatives from a Human Development Perspective (UNDP)

Room 201, Floor 6, Block A

Ministry of Commerce, Pakistan Secretariat

Islamabad – Pakistan

Ph: +92-51-922 4455

2.       Economic Justice and Development Organization (EJAD)

202, Floor 2, Kiran Plaza,

Ayub Market, Sector F-8

Islamabad – Pakistan

Ph: +92-51-281 7071-72

 

Published by the TIHP-UNDP

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