UBS has entered into a brokerage agreement with two Karachi-based brokers that will execute UBS orders and assist in introducing UBS's clients to companies in Pakistan. The new capabilities will complement UBS's economics research coverage for the Pakistan market.

"We are delighted to have extended our offering with the ability to buy and sell securities on Pakistan's largest bourse, the Karachi Stock Exchange. The brokerage agreement will allow us to satisfy the increasing demand from our clients for equities execution in this exciting market," said Chi-Won YOON, Head of Asian Equities at UBS Investment Bank.

The Karachi Stock Exchange is the largest of Pakistan's three bourses and is regulated by the Securities & Exchange Commission of Pakistan.

"Pakistan's economy has entered a period of unprecedented stability and has been growing at just over 7.5% for the last three years. Encouraging macroeconomic fundamentals brought about by effective fiscal and monetary policies, improved regulation and greater transparency have all contributed to the increasing appetite for Pakistan securities among foreign institutional investors. We believe this momentum will continue," said Yoon.

At present, foreign portfolio investment access in the market is made via Special Convertible Rupee accounts, which are then used for investing in the market.

The market capitalisation of the Karachi Stock Market is US$61.6 billion and has been providing year-on-year returns of approximately 42% since 2003.