Pakistan’s Participation in International Services Liberalization: Insights from WTO and Regional Trade Agreements

Abstract

This study examines Pakistan’s role, opportunities, and policy challenges as a member of the World Trade Organization (WTO), the only global body regulating international trade through multilateral, rules-based agreements ratified by member parliaments. The paper focuses on how Pakistan has pursued trade liberalization, particularly in the services sector, through bilateral, multilateral, and unilateral agreements under the framework of WTO and regional connectivity. The research highlights that Pakistan’s services sector—especially banking and telecommunications—has been a major driver of economic growth, contributing significantly to GDP and attracting both domestic and foreign investment. Using secondary data from peer-reviewed journals, policy documents, institutional publications, and credible databases, the study synthesizes existing literature to explore Pakistan’s participation in international service trade liberalization. Findings reveal that liberalization policies in the telecom and banking sectors have strengthened their interconnection, enhanced efficiency, and accelerated sectoral growth. The telecom industry’s rapid deregulation, in particular, has been pivotal in attracting investment and boosting economic output. The analysis concludes that continued liberalization and complete deregulation of the telecom sector are crucial for sustaining growth and competitiveness in Pakistan’s overall service economy. Ultimately, the paper contributes to developing a strategic framework for liberalizing trade in services, identifying research gaps, and understanding key factors shaping Pakistan’s service sector within the broader WTO and regional trade context.