1 The Case for Pakistan

2 S. NO. CRITERIA Applicability on Developed Markets Applicability on Advanced Emerging Markets Applicability on Emerging Markets Compliance Status of Pakistan 1Stock market regulatory authorities and oversight  Met 2Fair and non-prejudicial treatment of minority shareholders  Met 3Non or selective incidence of Foreign Ownership limits  Met 4No objection to or significant restrictions or penalities applied on repatriation of capital and income  Met 5Free and well-developed equity market  Met 6Free and well-developed foreign exchange market  Met 7Non or simple registration process for foreign investors  Met 8Settlement – Rare incidence of failed trades  Met 9Custody – Sufficient catalysts and competition to ensure high quality custodian services  Met 10Clearing & settlement – at least T+3 efficient  Met

3 S. NO. CRITERIA Applicability on Developed Markets Applicability on Advanced Emerging Markets Applicability on Emerging Markets Compliance Status of Pakistan 11Stock Lending permitted  In process 12Settlement – Free delivery  Met 13Custody – Omnibus account facilities available to international investors  Met 14Brokerage – Sufficient catalysts and competition to ensure high quality broker services  Met 15Liquidity – Sufficient broad market liquidity to support sizeable global investment  Met 16Transaction costs – implicit and explicit costs to be reasonable and competitive  Met 17Short sales permitted  Met 18Off Exchange transactions permitted  Met 19Efficient trading mechanism  Met 20Transparency – market depth information / visibility and timely trade reporting process  Met 21Developed derivatives market  In process