AMB Country Risk Report

September 28, 2011

Pakistan
Country Risk Tier
CRT-5
• The Country Risk Tier (CRT) reflects A.M. Best’s assessment of three categories of risk: Economic, Political and Financial System Risk. • Pakistan, a CRT-5 country, is itself the site of military and terrorist activity. Its fundamental lack of political stability is a challenge to its economic and financial outlook.

Economic Risk
Moderate Low High

• Regional instability and domestic bureaucratic inadequacies challenge this economy that, though recently liberalized by the government, supports a relatively low-income population. • In addition to the need to eliminate terrorist violence in Pakistan, the government must continue to work to strengthen the legal system and transparency in government to increase growth in Pakistan’s economy and industry.

Very Low

Very High

Political Risk
Moderate Low High

Very Low

Very High

Financial System Risk
Moderate Low High

Very Low

Very High

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AMB Country Risk Report

Pakistan

Regional Summary: South Central Asia
• The region of South Central Asia, comprising the countries south of the Himalayans, is dominated in population and economic size by India. • Strategic in location, as it is bordered by China, Central Asia, and the Middle East, this region contains a cross section of cultures and histories and is prone to periods of regional instability, particularly between Pakistan and India. • Much of South Central Asia had been colonized by the United Kingdom prior to World War II.