Economic survey: Services sector fails to meet targeted growth rate

KARACHI: The services sector grew by 4.29% in fiscal year 2013-14, compared to 4.85% in the last fiscal year, failing to meet the government’s targeted growth rate of 4.5%.

The services sector forms 58.2% of the GDP, a share that has been steadily expanding for the past nine years.

Wholesale and retail trade is the largest subsector of the services sector with an 18.6% contribution towards the GDP, followed by transport, storage and communication, which has a 13% contribution.

Wholesale and retail trade grew by 5.18%, compared to 3.38% last year, while transport, storage and communication grew by 2.98%, as compared to 2.88% last year.

The survey cited improving energy situation and the achievement of the GSP Plus status as factors contributing towards the growth of the wholesale and retail trade subsector.

According to the survey, air transport recorded a 6.07% growth, while pipeline transport registered a growth at 8.49%. Road transport grew by 3.69% and storage grew by 5.17%.