Merrill Lynch Executives' Visit Reaffirms Commitment to Pakistan

Karachi, 9 August, 2007

Merrill Lynch ("ML"), one of the world's leading investment bank and brokerage firms, reaffirmed its commitment to Pakistan during a recent visit by three senior executives to Islamabad and Lahore. The ML delegation was led by Mr. Kevin Watts, Vice Chairman of Merrill Lynch and Co., who was accompanied by Mr. Soofian Zuberi, Managing Director of Asia Equity Markets, and Mr. Michael Tan, Managing Director of Asia Financial Institutions.

During his stay, Mr. Watts met with President Musharraf and Prime Minister Shaukat Aziz separately. He complemented the Government's commitment to implementing transparent policies that have sustained Pakistan's steady economic growth. The meetings highlighted the Government's success in attracting a record USD 5.1 billion of foreign direct investment in 2007, which reflects the mounting investor confidence in the country. Mr. Watts conveyed ML's continuing interest in providing financial services to Pakistan's growing corporate sector through its local partner, KASB Group. He discussed the opportunities that the corporate sector can leverage on through ML's extensive experience in international markets and its introduction of innovative structures to lead capital raising and growth exercises. The ML delegation also met Dr. Shamshad Akhtar, Governor, State Bank of Pakistan and Dr. Ashfaque Hasan Khan, Director General, Ministry of Finance. In this meeting Mr. Watts extended his thanks for their continued cooperation in the regulatory review process during the execution of ML deals in Pakistan. He further hailed their efforts for implementing policies that are fostering robust economic growth and development. During the visit to Islamabad and Lahore, Mr. Watts also met notable business leaders from numerous industries, including telecommunications, financial services, energy, cement and agribusinesses. He related ML's strong interest in extending financial services to assist these companies in attaining higher levels of growth and competing effectively in global markets.

Merrill Lynch's commitment to Pakistan dates back to 1993 when it entered into a technical agreement with KASB Group in the areas of research and investment banking. Since then, KASB and ML have worked together seamlessly to attract international capital to Pakistan through strategic investment, portfolio investment as well as international debt and equity capital issuances. ML and KASB have executed landmark transactions in Pakistan, including the USD 460 million acquisition of Paktel by China Mobile (2006), USD 150 million GDR offering of Muslim Commercial Bank (2006), and USD 650 million GDR offering for United Bank Limited (2007).

Mr. Watt's visit exemplifies the confidence and interest of foreign financial players and their clients in Pakistan, a key contribution to Pakistan's growth as Merrill Lynch expands its activities in Pakistan through its local partner, KASB Group.