Business Review

KASB Group
 1958
KASB ventures into securities trading

In 1955, Khadim Ali Shah Bukhari and Company was established as a cotton trading
firm. The firm ventured into securities trading in 1958 and has since evolved into
Pakistan’s leading financial services institution with investments in a commercial
bank, an asset management company, a housing finance company and an investment
banking / securities trading firm.
1955 Khadim Ali Shah Bukhari
establishes cotton trading firm
In 2002, Khadim Ali Shah Bukhari and Company acquired Platinum Bank. In 2003, the merger with Platinum Bank was com-
pleted (renamed to KASB Bank) and KASB Securities was setup as a 100% subsidiary of bank handling the investment banking
and securities trading business for the group.
In 2005, the group setup KASB Funds, as a 100% subsidiary of KASB Bank to expand the asset management business. In 2006,
Merrill Lynch Investment Managers took up an equity stake in the asset management business.
In 2007, the group restructured itself with the formation of KASB Capital as the holding company for KASB Securities and KASB
Funds. KASB Capital, which also includes investment banking services, has also launched a new Principal Investments division
which will allow it to use its own capital to invest in businesses. KASB Capital successfully raised PKR 2 billion (US$ 33 million)
through a private placement of equity to GLG Emerging Markets Special Situations Fund, Tikehau Asia and Liberty Harbor
whereby the investors will collectively take a 35% stake in KASB Capital Limited.

2004

2005
KASB enters the
asset management Merrill Lynch
business with acquires an
2002 2003
KASB Funds
2006 equity stake in
KASB Funds
KASB acquires
Platinum Bank
1992
1993 (later named
KASB Bank)
KASB establishes Pakistan’s first
public limited Brokerage 1991 Merrill Lynch partners
with KASB for research
and investment banking
in Pakistan
In 1991, Khadim Ali Shah Bukhari and Company was established as the first public limited brokerage company
in Pakistan and was listed on the Karachi Stock Exchange. In 1993, in recognition of the group’s prominence
in the domestic financial market, Merrill Lynch, one of the world’s leading investment banks, entered into a
2007
The Group creates KASB Capital as a
partnership with the group in the areas of research and investment banking. holding company for KASB Securities
and KASB Funds
Business Review
KASB Group of Companies
To be Pakistan’s financial services firm of choice,
recognized for our in-depth knowledge of industries and
markets, our domestic and international network, and
valued for our ability to identify, structure and deliver
innovative products and services.

VISION
BUSINESS REVIEW

Vision
3
CONTENTS

LEADERSHIP 6

ENGINEERED FOR EXCELLENCE 20

WHAT WE DO... 22

...AS A COMPANY 24

...AS A COMMUNITY 26

UNLOCKING VALUE 28

GROUP PERFORMANCE 38

KASB ANSWERS YOUR QUESTIONS 44

CONTENTS
BUSINESS REVIEW

Contents
5
6
BUSINESS REVIEW
 Leadership
7
BUSINESS REVIEW LEADERSHIP
8
BUSINESS REVIEW
 K ASB has come a long way from its roots
as a cotton brokerage and securities
trading firm in the last five decades,
to become a diversified financial services
conglomerate today. I take this opportunity
to thank all those who have been a part of
the KASB family, past and present, for their
hard work and dedication in making our
success a reality. I would also like to express
my gratitude to all our clients, who have
over the years placed their trust in us.
KASB has always been at the forefront of
Pakistan’s capital markets and we are greatly
humbled by our successes. We have begun
to reap the benefits of a massive corporate
restructuring of KASB Group that began in
The past is gone, the 2007 with new capital inflow into our busi-
ness from leading international investors:
future is now and the GLG Partners, Liberty Harbor (Goldman
talent age is upon us and Sachs), and Tikehau Capital. As part of this
restructuring, the banking and non-bank-
KASB is ready to face the ing financial services were separated. KASB
challenges that lie ahead. Capital Limited was formed as the non-
“Acquire excellence to achieve admiration of the world”
Nasir Ali Shah Bukhari
Chairman, KASB Group
banking financial entity of KASB Group
and the holding company for our brokerage
and asset management businesses.
Our partnership with Merrill Lynch and
BlackRock has helped us to evolve into
an innovative organization. By leveraging
on our partners’ expertise, we are able to
provide world class products and solutions
to our domestic and international clientele.
Today, the regional economies of the Gulf
and Asia offer tremendous growth opportu-
nities for dynamic financial institutions. We
are looking forward to being a part of this
growth to serve our clients in the region
and reap superior profits for all stakeholder
benefits.
We believe the past is gone, the future is
now and the talent age is upon us. Our
young and talented team at KASB is
adequately powered to face the challenges
that lie ahead.
LEADERSHIP
BUSINESS REVIEW
9
10
BUSINESS REVIEW
 ... At a Glance
BUSINESS REVIEW LEADERSHIP

11
 BEHIND THE SCENES AT KASB BANK HEADQUARTERS
Powered by our talented workforce, diligently serving
our growing client base, KASB Bank’s future is bright
and promising.
BUSINESS REVIEW

Leadership in
12
Commercial Banking
A t KASB Bank we are driven to offer a
comprehensive set of financial services
to a broad based clientele, with our em-
ployees relentlessly following our mantra
that customer satisfaction and service qual-
ity are the key differentiating factors that
set us apart. As I reflect upon another year
of progress at KASB Bank, I am privileged
to highlight the tremendous efforts under-
taken this year to prepare the Bank for an
aggressive growth strategy for the future.
In 2007, KASB Bank developed effective
control mechanisms (i.e. risk manage-
ment, internal control and internal audit),
invested heavily in its core banking system
and designed strategic business relation-
ships, including new consumer products.
The Bank’s investments in these segments
not only enabled it to achieve an entity
rating upgrade, but also boosted customer
confidence as reflected by a 78% increase
in advances and 56% increase in deposits
compared to the last fiscal year. We have
also appointed an external consultant to
assist in implementing an effective internal
control framework (COSO) that will
facilitate compliance with industry level
best practices.
In line with our commitment to providing
our customers with maximum product
Muneer Kamal
President & Chief Executive Officer, KASB Bank
offerings, KASB launched its personal loans
scheme, KASB Cash Asaan. The Bank’s
future strength is further powered by the
successful merger of KASB Bank with
International Housing Finance Limited
(IHFL) that was completed in November
2007. The merger greeted our clients
with a housing finance product offering
unmatched flexibility to customers, KASB
Ghar Asaan. We also inaugurated our inter-
net banking facilities, providing customers
the ease of tracking their accounts at their
own comfort.
KASB Bank has defined an aggressive
strategy for 2008. We plan to extend our
branch network with 38 new branches
across Pakistan. Our product offering
will also be expanded to include wealth
management services and the relaunch of
our Business Flex product. Our substantial
stake in the newly created entity, KASB
Capital, formed as a result of a restruc-
turing of the KASB Group, will further
support our future gains in the form of
dividend income and appreciation of the
value of the investment. Powered by our
talented workforce, diligently serving our
growing client base, KASB Bank’s future
is bright and promising. I look forward to
another year of bringing the best financial
solutions to you, our clientele.
COMMERCIAL BANKING
BUSINESS REVIEW
13
 The diverse backgrounds of our team members,
spanning from finance to engineering to political
science, allow us to formulate unique business
opportunities with each team member bringing with
BUSINESS REVIEW

them a distinctive skill set.

Leadership in
14
Investment Banking
W ith the passing of another year, KASB
has further solidified its position as
the leading investment bank in Pakistan,
with our powerful brand name remaining
synonymous with industry expertise. Our
ability to provide our clients with custom-
made financial solutions, furnishing their
individual business needs, has strengthened
us in an increasingly competitive market. In
2007, we continued to expand our business
portfolio with notable transactions including
the GDR issue of UBL and the acquisition
of Paktel by China Mobile.
Our continuing collaboration with our
international partners, Merrill Lynch, has
provided us with unparalleled access to
global resources, as our teams continue to
work closely with each other in the local
and international arena. We are proud to
highlight KASB’s leading role in attracting
foreign interest in Pakistan, as we brought
in over USD 1 billion in FDI (over 20% of
total FDI) in 2007.
KASB’s unwavering client focus lies at the
foundation of our success as our team relent-
lessly devotes itself to providing each client
with the most optimizing solutions. The
diverse backgrounds of our team members,
spanning from finance to engineering to po-
litical science, allow us to formulate unique
business opportunities with each team
Farid Masood
Managing Director, KASB Capital
member bringing with them a distinctive
skill set. Our experience and dedication has
been rewarded by numerous accolades year
after year, and 2007 has been no different.
In 2007, KASB Capital received the CFA
Institute Award for Best Corporate Finance
House of the Year and the Euromoney
Award for Pakistan Investment Bank of the
Year.
In 2007, KASB Capital was formed as a
separate non-banking financial entity, as
part of KASB Group’s restructuring strategy.
KASB Capital has been formed as the invest-
ment banking and principal investments arm
of KASB Group. This year we also launched
our Principal Investments division as part
of our strategy to leverage our extensive
domestic network to identify premium
transactions and provide superior returns
in investments. KASB has already initiated
this area of growth with strong collaborative
interest from international investors.
As we continue to deliver first rate services
we are cognizant of the changing business
environment in Pakistan. Increasing exposure
of local companies to global industry leaders
has cultivated a more demanding clientele
whose expectations we continue to try to
surpass. With our past bearing a reflection
of our future, we are excited and ready to
overcome the challenges that lie ahead.
INVESTMENT BANKING
BUSINESS REVIEW
15
 THE TRADING FLOOR AT KASB SECURITIES
As one of the largest brokers in Pakistan, our ability
to provide the most superior services in the industry is
made possible by our most valued asset, our skilled and
talented team.
BUSINESS REVIEW

Leadership in Securities
16
T he year 2007 proved to be another pros-
perous year for KASB Securities as we
aggressively pursued our vision of providing
an entire continuum of brokerage and
research services to our valued clients.
This year will mark our fifteenth year of
collaboration with Merrill Lynch, which
has provided us with supreme global
resources. With growing competition from
new entrants, KASB continues to have a
dominant share in foreign institution trades,
maintaining relations with international
fund managers through our annual Pakistan
investor forums held in association with
Merrill Lynch in London and Singapore
since 2006.
With KASB planning to set up operations
in the Middle East, KASB Securities will
benefit from untapped potential in interna-
tional standard coverage focused on GCC
equity markets. It will also provide us with
relationship building opportunities with
fund managers in the Middle East to attract
trade orders through KASB in Pakistan. We
also plan to expand our domestic operations
in the fast developing cities of northern
Pakistan.
Today, our online trading platform, KASB
Direct accounts for about 80% of the elec-
tronic trading volume on the KSE owing
to its superiority in technology and KASB’s
strong consumer base. Our dedication to
providing the most up to date facilities does
Farrukh Sabzwari
Chief Executive Officer, KASB Securities
not falter, as KASB Direct has recently been
revamped with plans in place to launch it
with an aggressive marketing plan to tap
into growing computer literacy and capital
markets awareness. For this purpose, a
highly competent marketing team has been
assembled along with technological up-
gradation plans.
As one of the largest brokers in Pakistan,
our ability to provide the most superior
services in the industry is made possible by
our most valued asset, our skilled and tal-
ented team. It is their experience and hard
work that drives KASB Securities forward
year after year and is recognizable by the
accolades that we continued to receive. We
are the proud recipients of the Asiamoney
Awards for Best Local Brokerage (2007)
and Best Analyst (2005-2007) and the CFA
Institute Award for Best Research Analyst
(2005-2007) and Best Brokerage (2007
Runner Up).
We are pursuing an aggressive growth
strategy for the future, which includes
expanding our research coverage to include
small to mid cap companies. In 2008 we
plan to list the company on the Karachi
Stock Exchange to bring positive value to
the Group and bring the company under
greater and more transparent corporate gov-
ernance standards. Moving ahead, we are
well equipped to maintain our commitment
to our clients in bringing them the most CAPITAL MARKETS
effective solutions in the market.
BUSINESS REVIEW
17
 Our visions are built upon our strengths which include
an experienced management team with extensive
exposure to the local market, complemented by our
international relationships.
BUSINESS REVIEW

Leadership in Asset
18
Management
S ince its inception in 2005 KASB Funds
has provided an array of investment and
savings solutions to a broad investor base
that ranges from retail investors to high net
worth individuals and from pension funds
to corporations and institutions. Working
with our international partners, BlackRock
Merrill Lynch Investment Managers (Back-
Rock MLIM), our business has grown
exponentially with Assets Under Manage-
ment of over PKR 10 billion in 2007 (PKR
1.7 billion in 2006).
With a clear vision of providing excellence
through an innovative product offering, we
launched the KASB Stock Market Fund
and the KASB Balanced Fund in 2007,
providing our clients with the flexibility
to choose the product that best suits their
need. Our success in the last year has been
achieved by our relentless dedication to
delivering on the promises we have made
to our clients. KASB Funds was assigned an
asset manager rating of AM3+, reflecting
the company’s strong risk management
capacity, exemplary Group credentials
and the technical collaboration and equity
partnership with an asset manager of in-
Naz Khan
Chief Executive Officer, KASB Funds
ternational standing (BlackRock MLIM).
The performance of KASB Liquid Fund
resulted in a 5-star rating by the Pakistan
Credit Rating Agency (PACRA) in 2007.
As we grow towards becoming the fund
managers of choice, our deep understand-
ing of the industry will drive us forward. At
present, the industry remains under pen-
etrated, with AUM of USD 5.7 billion for
a population of approximately 163 million.
With robust economic growth leading to
increased liquidity, we stand ready to cap-
ture the market. Our visions are built upon
our strengths which include an experienced
management team with extensive exposure
to the local market, complemented by our
international relationships.
Having nationwide access through the 35
branches of KASB Bank, we are prepared
to leverage off the opportunity we will get
through the expanding branch network, as
KASB Bank prepares to enlarge its network
in the coming year. At KASB Funds, we are
geared to exploit our strengths to relent-
lessly serve our clients and this year has
provided a glimpse of our future successes.
ASSET MANAGEMENT
BUSINESS REVIEW
19
 W ith increasing acquisitions in the domestic financial
sector, a continued privatization commitment by
the GoP and the steady growth of the Karachi Stock
Exchange, Pakistan has emerged as a favored investment des-
tination for foreign investors. Alongside the economic boom
in Pakistan, KASB has evolved to become the largest domes-
tic investment bank with access to a vast local network, and
an expansive international investor base through its alliance
with Merrill Lynch. Recognition of our strength came in the
form of a USD 33 million equity investment by three lead-
ing international funds managed by Goldman Sachs, GLG
Partners LP and Tikehau Capital. This investment initiated
TOP MANAGEMENT OF THE GROUP
BUSINESS REVIEW
20
a restructuring of KASB and its Group Companies, to better
position them in the domestic market.
As part of the restructuring, all non-banking financial
businesses of KASB Group have been separated from the
Bank. This has resulted in the formation of KASB Capital
Limited, a non-banking financial conglomerate, with KASB
Bank acquiring a stake in the newly created entity. Under
the new structure, KASB Capital is the holding company
of KASB Securities Limited, the Group’s securities, trading
and research business, and KASB Funds Limited, KASB’s
asset management arm. This restructuring will allow us to
 reinforce our leading market position in Pakistan and best
position the franchise to take advantage of new opportuni-
ties in the domestic market.
KASB Capital’s goal is to create a leading investment com-
pany embodying the necessary working functions required
for providing comprehensive investment banking, broker-
age, investment advisory and asset management solutions
to a regional and global client base. Further, our Principal
Investments division will generate superior returns to sup-
port further growth of our other businesses. By maximizing
established relationships with key domestic and renowned
international clients, KASB investment banking division
has maintained its dominant role in bringing value addition
to Pakistan’s premier companies. KASB Securities’ online
trading platform, KASB Direct targets the market at large,
better positioning it to capture a broader level of interest in
Pakistan’s capital markets. In our Asset Management divi-
sion, numerous capitalization opportunities opened from
leveraging relationships with existing Securities Trading and
Investment Banking clients, and at the same time, accessing
a broader distribution network through KASB Bank and
BlackRock MLIM. In the formation of KASB Capital,
KASB Bank has acquired a stake in a strong and profitable
company, thereby benefiting the Group at large. We are
excited to have positioned our companies in a manner that
optimizes their ability to leverage off of each other’s strengths
as we gear ourselves for an even more promising future.

KASB Bank BlackRock

27.5%

58.8% 5%
KASB Capital KASB Funds

8.3%

ENGINEERED FOR EXCELLENCE

100%

KASB Securities

Moving forward in 2008 and beyond, we
have ambitious plans for the group, some of
which we have already started implementing.
First and foremost, the strategy focuses on
creating shareholder value and raising funds
through the capital market listings of our
entities;
¤ KASB Capital is divesting 24% of KASB
Both these events will raise KASB over USD
50 million that will be deployed in growth
areas of principal investments and wealth
management.
Second, we plan to leverage our books and
move from pure agency business to an ef-
fective mix of agency business and market
making with superior risk management
procedure in place. Finally, the group will
BUSINESS REVIEW

Securities in June 2008, through an offer
for sale on KSE
¤ KASB Bank will divest part of its holding
of KASB Capital through an offer for sale
on KSE in the second half of 2008
expand outside Pakistan, starting with the
investment banking and principal invest-
ment businesses.

Engineered for
Excellence 21
22
BUSINESS REVIEW
Showcasing Pakistan is a skill we have mastered with
expertise due to our strong understanding of domestic
markets and an enviable network both locally and
globally. Leveraging our strengths has enabled us to
link various markets players and attract significant
investment into the country.

Today, we are proud to boast that we are the only

domestic group to be affiliated with an international
bulge bracket firm, Merrill Lynch International and
are amongst the select few local institutions with a
balanced business platform, offering a complete spread
of financial services.

WHAT WE DO...
BUSINESS REVIEW

What We Do...
23

We are proud of the fact that we have
for years received recognition for our
performance by winning numerous
awards. Though the standards we have
set in the past have always been high, we
continue to set performance benchmarks
to strive towards perfection. In the end,
the greatest reward for our performance
is earning the respect and satisfaction of
our client – and of course their contin-
ued relationship.
BUSINESS REVIEW
...As a Company
24
Our reputation is built on a tradition
of trust – a trust by our clients that we
will rise to challenges put before us, a
trust in our ability and the ability of
our colleagues, and a trust that we will
protect at all costs our reputation and
that of our clients. Achieving this level
of trust is not easy and requires perfor-
mance, everyday and in everything we
do, with the highest degree of integrity.
In order to succeed in our business
we must anticipate and then exceed
our clients’ expectations. In a rapidly
changing world that is not easy – we
must make sure that we understand the
industries of our clients, the markets
that they operate in, and the challenges
that they face. We are able to do this
by putting all the resources of our firm
and of our partners to work everyday
for our clients.
We can only succeed in becoming the
financial services firm of choice, if we
work together across all our businesses
with a single purpose – delivering sig-
nificant value to the client. Performing
as one team is hard work, often putting
aside our own differences and focusing
on sharing our wealth of experience and
knowledge to come up with innovative
solutions for our clients.
We focus our strengths on our clients and performance,
ensuring at the same time that a culture of integrity and
teamwork form the basis of all our activities. Over a
span of fifty years, any organization under the umbrella
of KASB has not only shown a dedication to honesty
and fair play, but has been rewarded for its principles
through increased recognition in the global market and
highly acclaimed awards for its successes.

K ASB is proud to be one of the most

diverse financial groups in Pakistan, offer-
ing a wide spread of financial solutions from
helping to fulfill the dream of building a first
home through a mortgage loan to arranging
financing for the construction of a large scale
industrial facility. We offer advisory services,
tailor-made solutions and innovative prod-
ucts to companies, institutional clients and
the government as well as retail services to
our diverse clientele. KASB has developed as
a one-stop financial service provider; from
commercial banking to asset management,
research to investment banking, KASB offers
it all. Furthermore, each Group company
can leverage on each other to distribute their
products and services.
Our 50 years of banking experience have
provided us with a firm foundation that
allows us to constantly look ahead and
anticipate the needs of our clients in an
increasingly demanding industry. Our new
structure provides a strong platform from
which the Group can create synergies within
itself to enhance revenue growth, increase
efficiency and prepare us for the challenges
faced by our clients and our companies.
Having established ourselves as a leading
financial conglomerate in Pakistan, our
opinions are given high value and weight as
they challenge the country’s economic and
social policies. As leaders in our field, we
are always asked to present our comments
on policies related to financial markets and
investments. The country’s policy makers ask
our management to participate and debate
in dialogues concerning Pakistan’s economic AS A COMPANY
well being, and suggest the ways in which
we can continue to propel Pakistan’s growth
momentum forward. When we speak, our
opinions make a difference not only to our
company, but to our society as a whole; that
is a marker of our leadership.
BUSINESS REVIEW

25
 KASB’s interest and concern for solving social issues
has led us to be actively involved in an exchange of
views and ideas with clients, media, competitors, regu-
lators, government representatives and international
bodies.

T he way we interact with society has

an impact on our business and on our
reputation. As a firm and as individuals
we strive to give back by contributing our
time and resources by reinforcing a culture
of interest and concern in social issues.
Social welfare efforts by our organisation
are at the forefront led by an unmoved
commitment to monetary contributions
and volunteer work by our sponsors and
employees. After an initial donation of over
PKR 48 million by the KASB Foundation
and our employees for earthquake relief
efforts in the Northern Areas in 2005, we
have incessantly continued to support the
relief work through constant monetary
contributions and personal on-the-ground
volunteer work by members of the KASB
BUSINESS REVIEW
issues, future outlook and potential solu-
tions, challenging the country’s economic
and social policies.
We recognize that our youth are the bear-
ers and shapers of our future. As such,
we actively sponsor sports and cultural
activities that help in the development of
the young generation. After launching the
KASB Premier Football League in 2003,
we actively continue to be the lead sponsor
of the league through the joint efforts of
the KASB community and the Karachi
United Football Club. Today, the KASB
Football League has grown into a leading
professional football club of the city. KASB
also actively supports higher education
institutions such as LUMS, recognizing

family. Our research and representation the integral importance of educating our
in media discussions regularly cover an children to develop and equip them to lead
indepth understanding of current economic us ahead.

26
 At KASB, we welcome our obligations to
our community, considering these com-
mitments to be essential components of
our business culture and identity and as
promises to our nation.

AS A COMMUNITY

We believe that sponsoring sports events

provides our youth with healthy avenues
of entertainment, building the spirit of
sportsmanship and developing the es-
sential teamwork skills that will support
them at their workplaces as well.
BUSINESS REVIEW

... As a Community
27
 The focused and structured way in which we approach
our business actively contributes to the growth,
development and value creation of our clients.
BUSINESS REVIEW

28
 Unlocking Value
BUSINESS REVIEW UNLOCKING VALUE

29
 Today, the Internet is a very real part in the lives of
many and KASB has developed a well-designed plan
across the Group to provide a range of online services,
providing clients higher accessibility at their own
convenience.

I n our quest to become more innovative,

optimize business performance and
provide our clients with the most accessible
services, we have leveraged a powerful asset:
technology. Today, the Internet is a very
real part in the lives of many and KASB has
developed a well-designed plan across the
Group to provide a range of online services,
providing clients higher accessibility at their
own convenience.
Our latest innovation, KASB Direct, an
online trading platform is at the forefront
of technological advances and holds the
market leader position among other online
BUSINESS REVIEW
globally. KASB Bank provides Online
Banking services to its account holders,
enabling them to manage their accounts
at any time and offers clients the ease of
paying their bills online through the Bill
Asaan scheme. The bank has a large ATM
network spread across Pakistan, giving
customers the ease to withdraw money at
any time, anywhere.
KASB employees are also equipped with
the latest state-of-the-art equipment to
maximize productivity and efficiency. Our
ability to maintain our leading position in
an increasingly competitive environment

trading platforms in Pakistan. KASB Direct relies on our capability to continuously in-
is Pakistan’s fastest online trading system novate as we maintain our commitment to
providing real time instant access to retail strengthen our technological base.
investors across Pakistan and expatriates

30
Expanding
Technological Tools
BUSINESS REVIEW EXPANDING TECHNOLOGICAL TOOLS

31
BUSINESS REVIEW

Creating Value Across

32
Sectors
Years of experience have helped develop our expertise
across sectors spanning from Telecommunications, Fi-
nancial Services and Oil and Gas, among others, with
our advisory services extended to industry leaders.

CREATING VALUE ACROSS SECTORS

A s one of the leading financial conglom-
erates in Pakistan, we deliver a compre-
hensive range of financial solutions to all
our clients. Years of experience have helped
develop our expertise across sectors span-
ning from Telecommunications, Financial
Services and Oil and Gas, among others.
Our understanding of key sectors is un-
paralleled in the market with our advisory
services extended to industry leaders. In
2007, KASB Capital and Co-advisors
Merrill Lynch International successfully
executed China Mobile’s acquisition of
Paktel, a landmark transaction which was
attracted a demand of USD 2.5 billion,
the largest bookbuild for a Pakistani
international offering. Our exceptional
reputation in the Oil and Gas sector has
made us a ‘partner by choice’ for leading
corporations such as Oil and Gas Develop-
ment Corporation and Pakistan Petroleum
Limited. KASB is also an equity investor in
New Horizon Exploration and Production
Limited, a newly formed exploration and
production company in the Pakistan Oil
and Gas sector.
Our award winning research team provides
extensive coverage of these core sectors.
BUSINESS REVIEW

China Mobile’s first international acquisi-
tion. Together we continued to exert our
dominance in the financial services field
with the successful GDR offering of United
Bank Limited of USD 650 million on
the London Stock Exchange. The offering
KASB provides joint research coverage with
Merrill Lynch as well as KASB standalone
reports. With our combined expertise
across business segments, we continue to
strengthen our ability to create value across
sectors.

33
 The synergies of the KASB/Merrill Lynch relationship
have attracted international capital to Pakistan through
strategic & portfolio investments, debt and equity
capital issuance. Additionally, KASB and Merrill
Lynch have jointly published research, sponsored
international roadshows and investor conferences, while
executing international corporate finance transactions
for Pakistan’s corporations and the Government of
Pakistan.

I n our era of globalization, economic

growth is no longer restricted by the
barriers of national boundaries, as global
markets become more open and capital
crosses borders with ease. The speed of
growth in the Middle East is particularly
spectacular with the World Bank estimating
that the MENA region will grow by 5.4%
in 2008. In this environment, KASB is
embarking on its international expansion
plan and we are extending our operations
to the Middle East in 2008.
In the international arena, we maintain our
commitment to attracting foreign invest-
ment into Pakistan through our investor
BUSINESS REVIEW
of over 56,000 professionals worldwide and
gives us unmatched access to one of the
largest international distribution networks,
including corporations with an appetite for
emerging markets.
As we take our business abroad, we
continue to raise the bar domestically by
expanding our network across Pakistan.
In 2008, KASB Bank will open 38 new
branches throughout the country and
KASB Funds plans to launch two new
funds. Our extensive domestic spread al-
lows our different business areas to leverage
each other. For example, KASB Funds
is able to extend its reach by offering its

forums, held in association with our
partners Merrill Lynch in Singapore and
London since 2006. These forums showcase
Pakistan’s leading corporates to investors
overseas. Our partnership with Merrill
Lynch enables us to leverage their network
products through all branches of the bank.
Similarly, each of our businesses have de-
veloped strong relationships with industry
leaders and these relationships spread across
the Group, leading to growth in all Group
companies.

34
and Regional Network
Leveraging a Domestic
BUSINESS REVIEW LEVERAGING A DOMESTIC AND REGIONAL NETWORK

35
BUSINESS REVIEW

Attracting A Top-Tier
36
Talent Pool
Our employees are the face of KASB, interacting with
our clients and customers at every level. From the sales
staff that greets our customers at every bank branch to
the senior management that interacts with leading global
institutions, we have hand picked and retained the best
and the brightest to be a part of the KASB family.

ATTRACTING A TOP-TIER TALENT POOL

T hroughout history, talented individuals
have risen above man-made boundaries
to redefine the limits of what is considered
possible in their times. Magnificent struc-
tures in our own country, such as the Lahore
Fort and the Badshahi Mosque, are glaring
testimonials of the ground breaking achieve-
ments that are attainable through collective
human effort. At KASB, we believe that
people make a difference. Our employees
are the face of KASB, interacting with our
clients and customers at every level. From the
sales staff that greets our customers at every
bank branch to the senior management that
interacts with leading global institutions, we
our standards to bring them in line with
multinational organizations. Our team mem-
bers are the most talented in the industry
and have been recruited from leading edu-
cational institutions across the globe, such
as Cambridge University, the University of
Pennsylvania, Northwestern University and
the Lahore University of Management Sci-
ences (LUMS). Not only do we recruit the
finest, but we pay special attention to their
professional development through training
courses, both domestically and internation-
ally. Through our affiliation with Merrill
Lynch, each year a select group of employees
is sent to Merrill Lynch training programs
BUSINESS REVIEW

have hand picked and retained the best and
the brightest to be a part of the KASB family.
We have revamped our Human Resource
division, outsourcing these services from a
leading HR consultancy firm, streamlining
in London, Hong Kong or Singapore. Our
employees also benefit from regular training
programs at LUMS throughout the year. At
KASB, we have taken HR to the next level
as we challenge the boundaries of our own
times.

37
 O ver the years, KASB Group has made
immense progress in transforming itself
from a brokerage firm to a leading financial
conglomerate, offering a wide array of
financial services. Today, the Group has
assets of over PKR 47 billion in commercial
banking, securities trading, investment
banking, asset management and principle
investments.
As a part of our strategy of becoming
the financial services firm of choice, we
undertook a significant restructuring of
our Group that separated the non-banking
financial business of KASB Group from
KASB Bank, resulting in the formation of
KASB Capital Limited. KASB Capital has
successfully raised PKR 2 billion (USD
33 million) through a private placement
of equity to three leading international
investors (insert names). Under the terms
of the placement, these investors have
taken a 35% stake in KASB Capital, the
holding company of KASB Funds Limited
and KASB Securities Limited. The Bank
divested its stake in KASB Securities
(100%) of PKR 300 million and KASB
Funds (30%) of PKR 30 million, and sold
the stake to KASB Capital for PKR 680
million. The Bank also invested in 68 mil-
BUSINESS REVIEW
38
lion shares of KASB Capital Limited which
translates in a 27.5% shareholding of the
newly created entity.
With the grouping of KASB Securities
and KASB Funds under the KASB Capital
umbrella and the financial strength of
KASB Bank and other Group companies/
investments such as New Horizon E&P
Limited and International Housing Finance
Limited, KASB Group now boasts tre-
mendous financial muscle to initiate great
strides of growth. With a larger asset base of
over PKR 47 billion, we expect to realize a
higher return on assets as our market value
has increased significantly.
At present, one of our Group companies,
KASB Bank is listed on the Karachi Stock
Exchange with a market capitalization of
PKR 7.6 billion. In 2008 we also plan to
list KASB Securities and KASB Capital,
increasing our access to the fast growing
capital markets.
Each of our companies has aggressively
welcomed the new year and we are ideally
prepared to maintain our position as mar-
ket leaders in each of our businesses.
 2007 – 08

Group Performance
BUSINESS REVIEW GROUP PERFORMANCE

39
 2007 HIGHLIGHTS
¤ 44.5% increase in bottom line of the Bank
¤ Growth of 78% in advances
¤ Growth of 56% in deposits
¤ Increase in assets of 54% over the last year
¤ Merger with International Housing Finance Limited (IHFL)
¤ Invested in a 27.5% shareholding in the newly created entity, KASB Capital,
formed as a result of the restructuring of KASB Group

36,320

44,139
10,739

14,828

14,513

21,276

25,143

33,132
2005A 2006A 2007A HY08E
MAJOR 2007 ACCOMPLISHMENTS
¤ Developed proper control mechanisms, invested in core banking systems, ADVANCES DEPOSITS
designed new products
¤ Launched two new consumer products Cash Asaan and Ghar Assan ADVANCES AND DEPOSITS (PKR MILLION)

¤ Assigned medium to long term entity rating by PACRA of A- (A minus) and

short term rating of A2
54,380
¤ 90% increase in headcount from 694 to 1,320
40,891

26,539
19,103
2008 AND BEYOND
STRATEGY
¤ Expansion of branch network and product offering
2005A 2006A 2007A HY08E
¤ Continue to improve technological edge to increase customer accessibility
¤ Cross sell services with other Group companies ASSET BASE (PKR MILLION)
¤ Leverage the opportunities created by the merger with IHFL
¤ Establish wealth management and create a niche as an upscale bank

TACTICS
¤ Raise capital through a partial sale of its stake in KASB Capital
¤ Expand branch network through 38 new branches
¤ Introduce new consumer sales centers
¤ Expand internet ATM network and internet banking services
¤ Cross sell, not only with KASB Bank customers but with KASB Funds, KASB
Direct and KASB Investment Banking
¤ Expand product offering, including Cash Asaan- revolving term deposit (13
month, 18 month and 2 year)
¤ Re-invent branches with wealth management floors and an up-market look
and feel
BUSINESS REVIEW

Commercial Banking
40
Performance
 181,720
176,200

100,300 2007 HIGHLIGHTS

48,540 ¤ KASB Capital was formed as the non-banking financial arm of KASB Group,
serving as the holding company of KASB Securities and KASB Funds
¤ Achieved 81% growth in investment banking revenues
2005A* 2006A* 2007A HY08E ¤ Significant increase of 226% in advisory revenues
¤ Increase of 47% in ECM revenues
REVENUE (PKR ‘000)
¤ 56% of revenue was generated from equity capital market (ECM)
¤ 44% of revenue generation was attributed to advisory services
* Note: Since KASB Capital is a newly formed entity,
these figures refer only to investment banking
revenues

* HY08E includes investment banking and treasury

MAJOR 2007 ACCOMPLISHMENTS
¤ Closed a number of major transactions including:
¤ USD 650 million GDR offering of United Bank Limited
¤ USD 460 million acquisition of Paktel by China Mobile
¤ USD 100 million restructuring and private placement for KASB Capital
¤ Received CFA Award for Best Corporate Finance House of the Year, 2007
¤ Setup of the Principal Investments business headquartered in the ME
¤ Closure of pending transactions, acquisitions in Pakistan’s food and
agricultural sector, Pakistan’s oil and gas sector and a Middle East paints
business

2008 AND BEYOND

STRATEGY
¤ Maintain steady pipeline of investment banking transactions
¤ Increase regional presence through expansion in the Middle East
¤ Set up of the Principal Investments business

GROUP PERFORMANCE
TACTICS
¤ Steady deal pipeline for the year including:
¤ USD 109 million GDR offering of Lucky Cement
¤ USD 900 million sale of minority interest in Muslim Commercial Bank
¤ Restructuring and capital raising for Beaconhouse
¤ Expansion of KASB Capital’s reach in regional markets in the form of KASB
Capital International
¤ Set up of the Principal Investments business including acquisitions in Paki-
stan’s food and agricultural sector and regional industrial sector
¤ Listing of KASB Securities through a sale of minority stake by KASB Capital
¤ Listing of KASB Capital through a sale by KASB Bank
BUSINESS REVIEW

Investment Banking & Principal

Investments Performance 41
 11,162
10,852
9,764
2007 HIGHLIGHTS 8,209

¤ Revenue growth of 35% with a market share of 5.9%

¤ 94% of the total revenue generated from equity trading platform (pure
agency business)
¤ 3% of total revenue generated from the sales of marketable securities 2005A 2006A 2007A HY08E
¤ EBITDA margins remained stable at 54%
NUMBER OF CLIENTS

MAJOR 2007 ACCOMPLISHMENTS 687

¤ Received Asiamoney Award for Best Local Brokerage, 2007 582

¤ Received Asiamoney Award for Best Research Analyst, 2007 356 350
¤ Received CFA Association award for Best Equity Research Analyst, 2007
¤ Initiated coverage on Power and Oil Marketing sectors
2005A 2006A 2007A HY08E
¤ Actively covered 35 individual companies
REVENUE (PKR MILLION)

*Note: 2005, 2006 are performa figures

2008 AND BEYOND

STRATEGY
¤ Expand research coverage
¤ Increase client interaction and profitability
¤ Develop research and sales teams
¤ Maintain market leader position among online trading platforms in Pakistan
¤ Increase use of own book to generate revenues

TACTICS
¤ Coverage expansion to include more mid and small-cap companies
¤ Improve profitability through superior stock selection and timing
¤ Organize local and international marketing road shows to improve client
interaction
¤ Undertake regular training sessions and workshops for the personal develop-
ment of research and sales teams
¤ Expand reach of KASB Direct to maintain supremacy in online trading
¤ Listing on the KSE to promote greater corporate governance and attract a
diversified investor base
¤ Allot funds to outside manager (KASB Capital) to manage proprietary book
for Securities
BUSINESS REVIEW

Capital Market
42
Performance
 89,280 87,500

2007 HIGHLIGHTS
¤ Exponential growth of 539% in Assets Under Management from PKR 1.71 bn
14,609
NA in 2006 to PKR 10.93 bn in 2007
¤ Revenue growth of 512% from USD 0.2 mn in 2006 to USD 1.5 mn in 2007
2005A 2006A 2007A HY08E ¤ 86% of revenue generated from KASB Liquid Fund which had an annualized
REVENUE (PKR ‘000)
return of 10.52%
¤ 9% of revenue generated from KASB Stock Fund which had an absolute
return of 18.24%
¤ Investment income contributed 4% to revenue
12.00

10.93

MAJOR 2007 ACCOMPLISHMENTS

1.71 ¤ Launched the KASB Stock Market Fund
NA
¤ Launched the KASB Balanced Fund with an IPO size of over PKR 1 bn
2005A 2006A 2007A HY08E ¤ 5 star rating assigned to KASB Liquid Fund based on exceptional perfor-
mance by Pakistan Credit Rating Agency
AUM (PKR MILLION)
¤ KASB Funds Limited assigned asset manager rating of AM3+, reflecting com-
pany’s strong performance and future potential
¤ Standard Chartered Bank and Citibank started distributing KASB funds

2008 AND BEYOND

STRATEGY
¤ Increase AUM by expanding presence in the largely untapped market
¤ Increase product offerings
¤ Improve sales network
¤ Expand reach of KASB Funds across Pakistan

GROUP PERFORMANCE
TACTICS
¤ Launch products with Standard Chartered Bank and Citibank
¤ Launch of KASB Islamic Income Fund
¤ Launch of KASB Voluntary Pension Scheme
¤ Restructuring of Sales Department
¤ Expansion of reach in Pakistan through new offices in Islamabad and Lahore
BUSINESS REVIEW

Asset Management
Performance 43
44
BUSINESS REVIEW
Questions
KASB Answers Your
BUSINESS REVIEW KASB ANSWERS YOUR QUESTIONS

45
 Q1: You have talked about the benefits of
more fully integrating KASB’s businesses.
What are the opportunities that you see
there?
Q2: Margins in the Retail Brokerage busi-
ness have been shrinking across the industry.
How is the securities business going to ad-
dress the issue and continue to grow?
BUSINESS REVIEW
Q3: You have previously talked about the im-
portance of technology in this business. What
are KASB’s highest priorities in this area?
46
KASB is the leader in investment banking, brokerage, research, and asset management in
Pakistan. With a growing branch network of the Bank we now have the power to deliver
our vision.
“Imagine a successful businessman from Sialkot walks into a KASB Wealth Management
office there to meet with a Merrill Lynch trained wealth manager. He has come to discuss
how to plan for his children’s future and where he should invest. After carefully hearing
his needs, the wealth manager introduces him to the balanced and money market funds of
KASB Funds. He also suggests setting up a trust fund and invests some money into our
regional real estate fund and our Asia private equity fund, both managed out of Bahrain.
As the businessman sorts out his personal side of the equation, the wealth manager inquires
how his business is doing. The businessman smiles and says that he is doing well but some
of his friends have done better. They took their companies public and are now sailing the
world on their yachts. The wealth manager goes into the office and returns with the profile
of the KASB Investment Banking group accompanied by a few case studies showing how
we have helped businesses grow from family owned businesses to corporations. The busi-
nessman is engaged and a meeting is arranged. The investment banker will fly in and meet
with the businessman next week. Before the meeting, the investment banker has already
lined up a potential strategic partner who will invest into the firm and together they will
launch an IPO in a year.
As he walks out of the office, the wealth manager runs after him. He hands him an enve-
lope containing the brokerage account opening form and a pre-approved KASB Platinum
card. All in a days work thinks the wealth manager as he heads out to a fancy party of a
client he helped last year.”
We now have all the parts to deliver such a solution to our clients. It’s all being imple-
mented.
The Retail pie overall for the market in general is very small. A lot of people club retail
with prop book presence, and the latter is very significant while the former is miniscule
in its presence on the KSE. We would assume that going forward, over the next few years,
the retail pie will grow and all broking companies catering to this mass will also benefit.
At KASB, we are on a mission to do exactly that. As the largest pure agency broker on
the KSE, we feel it is also our responsibility to change the mindsets of the average retail
investor and make the KSE an accepted investment destination. While we would agree that
commissions in this segment will continue to shrink and will remain under pressure, the
increase in turnover will more than benefit. The future in Pakistan, like in more developed
markets, is online broking. KASB Direct, KASB Group’s online initiative, continues to be
the leading online umbrella in the country and boasts of the lowest commissions in the
industry.
The KASB online research portal also gives customers access to our award winning fun-
damental and technical research and with the touch of a button can help investors make
informed decisions on any sector of stock that falls within the KASB covered universe. The
real challenge in a developing country like ours is the education of people towards a riskier
asset class like equities. So while we would prefer to see the low touch online model work
here too, given the need to educate and change mindsets, this requires some high touch
customer contact and hand holding. Over the next few years, KASB would continue to use
its strength in online broking to break into new markets across the GCC while continuing
to spend time and resource on its existing strength in Pakistan. A few retail outlets that act
as a high touch contact point for initial training and access to the online umbrella are also
on the cards.
Technology and the need to be ahead in this space is one of the highest priorities at KASB.
Management continues to focus in this direction and our capex plans over the next three
years are aimed at retaining our lead in this space. While the online broking platform via
KASB Direct and the research portal are a step in that direction, we are also looking at
other ways to remain ahead. Our relationship with Merrill Lynch gives us a huge edge over
competing brokers on the street and Merrill is undertaking some very exciting options in
the online institutional space in the region. Technology is the best way to increase reach and
while management is fully cognizant of the impending pressure on margins/commissions as
a result, we strongly believe in the need to increase access which will transpire into increased
turnover in days to come.
Q4: More global and local players are setting
up Investment Banking businesses in Paki-
stan. How will you deal with the increased
competition?
Q5: The bank has been, for some time, lag-
ging behind its peers. How is KASB going
to close the gap and what makes you think
KASB can be competitive in the commercial
banking business?
Q6: KASB Bank’s share price has underper-
formed many of its peers in recent years. Why
should investors stay with KASB Bank, given
its past performance?
Succeeding in investment banking has traditionally been about relationships, credentials
and the ability to effectively execute. As the economy has grown in Pakistan, we have seen
the investment banking industry evolve and many firms have been able to win business
because of the strength of their balance sheets, especially on the debt side.
We, along with our joint venture partners Merrill Lynch, have been successfully executing
deals in Pakistan for a long time and have the track record to prove it. As new players try
to enter the market, they will and have, driven down their fees in order to compete. In our
areas of strength, which are raising capital through equity and equity linked products as
well as mergers and acquisition advisory, we believe that we will be able to remain ahead of
the competition owing to our history of delivering superior results for clients. The overall
value of our advice and world class execution capabilities has far exceeded the fees that we
have charged.
That said, we are now able to utilize our balance sheet strength as well. Firstly, we have
started our principal investment business and now have the ability to invest with our clients
where we believe we can add value. Secondly, we have increased our underwriting capabili-
ties on both the debt and equity sides which complements our ability to distribute to both
local and internal investors.
Apart from increasing our capabilities in our traditional areas, we have continued to
strengthen our human resource pool and have given them access to Merrill Lynch both by
providing training and by working alongside senior members with global expertise. All in
all, we should not only remain ahead of the competition, but also expand our services and
markets in the future as we strive to maintain our position as the number one player in the
market.
KASB Bank brought in a new management team at the end of November 2005 and since
then the Bank has experienced a major transformation into becoming a viable and vibrant
financial institution. In the last two years, the Bank focused on laying the foundation for
an aggressive growth strategy. In this time period, KASB Bank has been able to develop the
following: proper control mechanisms (risk management, internal control, internal audit);
acquire sophisticated core banking software, Misys equation; build a core management
team of quality professionals; relaunch itself with a new corporate identity and increase
KASB ANSWERS YOUR QUESTIONS
awareness of the brand, creating an image of a vibrant, progressive and growing bank;
improve liquidity by expanding and diversifying the deposit base and making it more
cost efficient; strengthen human resource infrastructure; and building of asset and capital
structure.
The Bank also undertook the strategic acquisition of IHFL which resulted in incremental
assets of over PKR 700 million and increased the capital by PKR 585 million. This merger
is expected to unleash synergies benefits in terms of product range expansion and franchise
value expansion.
The enormous growth in the last two years is clearly exemplified by the following: 156%
growth in deposits, 171% growth in advances, 140% growth in total assets and 146%
growth in total equity. In 2007, we have also succeeded in achieving operating profit before
provisions of PKR 300 million as compared to a loss of PKR 7 million in 2005.
The share price of KASB Bank has not moved in line with the market, due to the fact that
BUSINESS REVIEW
the shares are closely held with a very minimal market float. Over the past year the average
daily traded volume was 30,000 shares. With the foundation for growth well set, we are
now prepared to take aggressive development initiatives that we expect will be reflected in
our stock performance.
In the last two years, we have focused on laying the groundwork for our aggressive growth
strategy for the future. We have invested in Information Technology, set in place Systems
and Controls, invested in Human Resources and will continue to strengthen these aspects
of our business. In these two years, our complete focus was on establishing these systems
and there was little focus on developing the business itself. Now we are progressing forward
and the Bank is making operating profits despite stringent controls on the risk, compliance, 47
audit and internal control side of the business.
 Q7: KASB’s asset management business has
shown tremendous growth in the last year.
However, the gap between KASB on the top
five players remains the same. How do you
plan to narrow that gap?
Q8: Merrill Lynch has not taken a stake in
KASB. Why? Are there any plans for Mer-
rill Lynch to take a stake in KASB?
Q9: How has the recent political events
affected business? Do you think that the
markets will rebound in 2008?
BUSINESS REVIEW
48
The asset management business grew rapidly last year to end in the top ten rankings within
a year and half of launching its first fund. However, even with the tremendous growth we
remain very cognizant of the journey ahead and our strategy to narrow this gap is three-
fold.
First, we will double our product offering during the year, going from 3 to 6 funds. This
will allow us to build AUM strength by tapping into the different market niches. With an
adequate platter of funds, it will allow the company to position itself as an investment solu-
tion provider with savings and investment schemes rather than mutual fund units.
Second, we will strengthen our distribution footprint through the development of an
in-house corporate and retail sales team to be based in all the major cities pan-Pakistan.
To support the sales effort, KASB Funds will open offices in Lahore and Islamabad, and
embark upon an aggressive marketing campaign to brand the company. In addition, sales
executives will operate through every KASB Bank branch. Within an existing branch
network of 35 branches increasing to 73 before year end, KASB Funds will be available in
15 cities of the country through KASB Bank.
Finally, KASB Funds will draw on its uniqueness to differentiate itself from the crowd.
Its distinctiveness lies in its relationships. We will pull together our domestic distribution
relationships and our ability to access international markets through BlackRock to provide
products with appeal to wealth management clients. With our three-pronged approach we
are geared to actively capture the market in the future.
Merrill Lynch, through its asset management arm, Blackrock, has a small stake in our asset
management arm, with the option to increase it significantly. Additionally, we have signed
new joint venture and cooperations agreements with Merrill Lynch for investment banking
(KASB Capital), brokerage and research (KASB Securities) and asset management (KASB
Funds). These agreements integrate the organizations even further with the implementa-
tion of a seamless trading platform, access to global databases, access to training facilities
and joint marketing to name a few. Over the next few years, you will see some of these
strategies rolled out. From our side we are very happy with the relationship and as far as
equity stake is concerned, we are glad to wait as we create significant value for our current
shareholders.
Recent political events have led to short term instability. While business have not been
impacted in a big way, one can assume that a lot of potential investors continue to look for
the political dust to completely settle before further capital commitments are made to the
country. In terms of the broking space, the international pool of investors is not growing at
the pace one would have liked and that has been a direct fallout from the political events
that began with the sacking of Chief Justice in March last year. In our recent interactions
with some of the money managers abroad, while the general level of interest in the Pakistan
opportunity remains high, some concern on how the new government handles the weak-
ening macro fundamentals and continues to take the economic reform process forward
continues to remain high on the agenda.
In terms of the current year and how markets will play the remainder of 2008, a few
outstanding politically motivated decisions i.e judges issue, President Musharraf’s future
etc continue to be a dampener on sentiment. Pakistan is entering into a very tough phase
where exogenous factors such as oil prices and the continuing commodity boom are now
impacting inflation and have gradually led to a worsening of the macro picture overall.
How the government handles inflation and deals with the need to slow monetary growth
without impacting overall growth in the economy will be interesting to see. Delays in
privatization, divestments and GDR issues that help raise much needed foreign capital is
not helping either. Neither is concern on a State Bank circular requiring banks to reduce
exposure to the equity space and threat of a potential introduction of Capital Gains Tax
in the next few years. The remainder of 2008 will remain volatile and one needs to remain
very selective in their stock picks. Remain in oil (benefits from rising oil prices), fertilizer, a
few selective banks and play the power shortage with projects that are in expansion mode
like Hubco and Kapco.
 BUSINESS REVIEW

49
KASB Bank Limited
Business & Finance Centre,
I.I. Chundrigar Road,
Karachi, Pakistan

Tel: (92-21) 244 6772-77

Fax: (92-21) 244 6828/ 65

KASB Capital Limited

5th Floor, Trade Centre
I.I. Chundrigar Road,
Karachi, Pakistan

KASB Funds Limited

Tel: (92-21)111 535 535
Fax: (92-21) 263 9188

KASB Securities Limited

Tel: (92-21) 111 222 000
Fax: (92-21) 263 0202

KASB Investment Banking Group

Tel: (92-21) 111 535 535
Fax: (92-21) 221 1853

www.kasb.com