Professional Services

 

 Professional Services” means

Professional Services” means those services within the scope of the practice of architecture, professional engineering, or registered land surveying as defined by law or those performed by any architect, landscape architect, professional engineer or registered land surveyor in connection with professional employment or practice or other professional services that may be required.

Professional services are an integral part of the production of merchandise goods and other services.

1.   Classic PSFs (e.g. law and accounting firms) - characterised by a high knowledge intensity, a professionalised workforce, and low capital intensity

2.   Professional campuses (e.g. hospitals) - characterised by a high knowledge intensity, a professionalised workforce, and high capital intensity

3.   Neo-PSFs (e.g. management consultants) - characterised by a high knowledge intensity and a low capital intensity

4.   Technology developers (e.g. R&D firms, biotechs) - characterised by a high knowledge intensity and a high capital intensity

                                                                                                                                                                                      

Pakistan’s GATS commitment and regulatory regime

 

Engineering sector

As  required  by  WTO  membership,  Pakistan  made  commitments  in  the  Uruguay  Round  for  some  of  the services sectors both  in horizontal  and specific commitments via document no. GATS/DC/67 dated April 15,  1994.  ...

Horizontal commitments

Before discussing  Pakistan‘s  specific  commitment  on  professional  services,  it  is  important  to  note  that Pakistan  made  some  horizontal  commitments regarding  the  movement  of  natural  persons  which  is  one  of the four modes of transacting trade in services.

 

Specific commitments

Pakistan made  specific  commitments  in  the  Uruguay  Round  in  four  professional  sub-sectors:  two  in architectural and engineering services and two in construction services.

Regulatory regime

 GATS  allows  Members  to  maintain  their  regulatory  regime  to  maintain  technical  standards,  administrative  or  licensing  procedures  for  regulating  services  sectors  where  specific  commitments  have been made.

The  body  responsible  for  regulating  the  engineering  profession  of  Pakistan  in  respect  of  engineering  education,  construction  and  engineering  consultation  is  the  Pakistan  Engineering  Council  (PEC) which operates through the following regulatory bylaws in order to regulate construction and engineering sectors  in Pakistan:

(i)  Construction and Operation of Engineering Works byelaws, 1976 as amended (S.R.O 568(I)/87).

(ii)  Conduct and Practice of Consulting Engineers byelaws, 1986 as amended (S.R.O 809(I)/86)

Some  of  the  relevant  provisions  of  the  PEC  regulatory  regime  applicable  to  both  domestic  and  foreign  service providers are as follows:

1.  Domestic as well as foreign engineers, constructors, operators, consultants to be licensed.

2.  Foreign  engineers  /  architects  have  to  establish  joint  ventures  to  provide  services.  The  foreign  equity is limited to 51% holding.

3.  Award  and  execution  of  contracts  to  follow  PEC  framework  documents  for  bidding,  evaluation,  construction and consultancy contracts.

4.  Engineering work should be undertaken, managed and performed by licensed engineers only.

5.  Domestic  preferences  in  bid  evaluation  are  allowed  by  the  government  and  various  lending agencies. Margins of preference may vary from 10 to 20%.