to china ( 200 % ), malaysia ( 162 % ), hong kong ( 443 % ), singapore ( 185 % ) and philippines ( 61 % ). • equity market capitalization as a percentage of gdp in pakistan was 31 % in 2005. although now it has increased to 40 % and in fact, went up to 44 % in april 2006, but it is still substantially low relative to malaysia ( 141 % ), thailand ( 67 % ) and korea ( 90 % ). • likewise, the volume of bonds outstanding as a percent of gdp is merely 5. 5 % in pakistan compared to malaysia ( 90 % ), singapore ( 68 % ) and china ( 27 % ), although in china the bulk of these bonds are sovereign. while pakistan has definitely improved quite a bit, when we compare ourselves to the region, we are still lagging far behind and for me this is where we should strive to make more inroads. in my view, not only is there more room for banking assets to grow, but more fundamentally, there is now need to finally jolt the non - bank financial sector more strongly. it is indeed noteworthy that the growth of kse 3 conservative estimates, as stated in the medium term development framework, 2005 - 2010, planning commission of pakistan. karachi stock exchange market capitalization has risen from under 2000 points to over 10, 000 points in the last few years, and went on to record highs of 12, 274 points on april 17, 2006. average daily turnover is remarkable, which, at 525 million shares, makes kse one of the most liquid markets. likewise the p / e ratio of 9. 45 is extremely attractive when compared with average price earning ratios of neighboring countries. likewise, kse ’ s dividend yield ratio also offers good prospects relative to other emerging markets. however, i still maintain that pakistan ’ s capital market lacks sufficient depth, breath and maturity. it is prone to structural vulnerabilities and manipulation. this is confirmed by the decline in the number of listed companies from 762 in the year 2000 to 658 in 2006. moreover, as i have already mentioned, market capitalization as a percentage of gdp is still low and there are very few listed debt securities. but there are promising prospects and with various stakeholders ’ efforts, the stock market has achieved many milestones. the stock exchanges have fully automated the trading system with a t + 3 settlement cycle. the shares are traded in dematerialized form and settlement

exercise of disciplinary power over solicitors and macao gaming commission, with a view to enhancing aml efforts of the sar through improved planning, organizing and implementation. such responsibility was shifted to the financial intelligence office with effect from november last year. in the whole process, we not only assiduously supervise aml / cft work of the industry, we attach a lot of weight to co - operation with other regulatory authorities and international organizations. in this respect, amcm has concluded co - operation agreements and memoranda of understanding with other regulators such as the people ’ s bank of china, china banking regulatory commission, china insurance regulatory commission, hong kong monetary authority, hong kong securities and futures commission, hong kong insurance bureau, bank of portugal and institute of insurance supervision of portugal to enhance cross border supervision and exchange of information. on the other hand, amcm is doing its utmost to fulfil the duties of aml / cft of the msar accountable to the offshore group of banking supervisors ( ogbs ), offshore group of insurance supervisors ( ogis ) and the asia / pacific group on money laundering ( apg ). as early as 2001, macao invited representatives from the ogbs and apg to conduct a first round joint appraisal on the aml / cft efforts of macao. in the same year, we invited imf to conduct a comprehensive appraisal on the financial system of macao. we secured positive comments in these two appraisals. suggestions for improvement were raised at the same time. these suggestions, particularly those related to financial field, were implemented through the guidelines we mentioned above and supervisory work. in december 2006, the sar government again invited the ogbs and apg to conduct a second round aml / cft appraisal. the appraisal report is yet to be finalized and approved by the organizations, but the appraisal working unit has passed a positive judgment on the aml / cft efforts displayed by the sar government in the past few years. after the promulgation of the aml / cft legislations, the relevant implementation has started. from formulation or revision of supervisory guidelines to their actual implementation, from staff training to enhancement of public awareness, from the formation of responsible organization or confirmation of responsible personnel to supplement and finalization of internal system, from trans - department, trans - organizational co - ordination and co - operation to deepening of external communication, every facet is proceeding according