The Services Sectors The sector demonstrated high growth from 1999-2000 to 2004-05 as shown in Table 24.10. Since then the growth rate has been relatively low. Table 24.10: Growth Rate of Private Service Sector Value Added at Constant Prices 1999-2000 414 2004-05 730 2009-10 832 2014-15 1050 2020-21 134 Source: PBS Growth Rate (%) 11.3 2.6 4.6 6.3 Constraints to Growth Infrastructure Availability: Business services growth has been limited by the availability of office, adequate supply of electricity and gas, and IT infrastructure. Large companies have preferred to have their own in-house facilities and services. Similarly, the development of private education and health services has also been constrained by lack of availability of land and infrastructure in middle to upper income areas of large cities. Increasingly, there is also the issue of affordability of these services. Financing of NGOs: Pakistan has one of the highest levels of philanthropy. However, this occurs more in the form of charity at the personal level in the form of Zakat contributions. As such NGOs are not always able to achieve a large enough and sustainable level of financing. Despite this constraint, there is the need to recognize the nationwide efforts of the Edhi Foundation and more recently the Akhuwat Foundation. Proposed Reforms and Policies Allocation of Land and Infrastructure: Building Authorities must ensure that in the planning and development of new residential blocks, adequate provision is made for land to provide educational, health and other services at moderate prices. Tax Issues: Charitable contributions by corporate entities enjoy tax deductibility provision according to the ITO. This provision should be increased for officially recognized NGOs. Issues of taxation of income generated through investment or from economic activities by NGOs also need to be resolved. Overall, this Chapter has comprehensively covered the various services in the national economy with a description of their characteristics, constraints to growth and the agenda of proposed reforms and policies to accelerate their growth. 241