Population: 162,419,946

Economy Overview:

Pakistan, an impoverished and underdeveloped country, has suffered from decades of internal political disputes, low levels of foreign investment, and a costly, ongoing confrontation with neighboring India. However, IMF-approved government policies, bolstered by generous foreign assistance and renewed access to global markets since 2001, have generated solid macroeconomic recovery the last three years. The government has made substantial macroeconomic reforms since 2000, although progress on more politically sensitive reforms has slowed. For example, in the third and final year of its $1.3 billion IMF Poverty Reduction and Growth Facility, Islamabad has continued to require waivers for energy sector reforms. While long-term prospects remain uncertain, given Pakistan's low level of development, medium-term prospects for job creation and poverty reduction are the best in nearly a decade. Islamabad has raised development spending from about 2% of GDP in the 1990s to 4% in 2003, a necessary step towards reversing the broad underdevelopment of its social sector. GDP growth, spurred by double-digit gains in industrial production over the past year, has become less dependent on agriculture. Foreign exchange reserves continued to reach new levels in 2004, supported by robust export growth and steady worker remittances.

General Business Practices.

a). In Pakistan and Bangladesh the language commonly used in business transactions is English, however Urdu and Bangali is are used at a small scale. In court proceedings at the trial stage in Bangladesh and Pakistan, the language most widely used is Bangali and Urdu. Before the Higher courts, English is used as the language. Court Languages throughout Iran is Persian and Arabic in Saudi Arabia. The Arabic language is used in business transactions and court proceedings. b.) The following currency are used Pakistan - Rupee Bangladesh - Taka Iran and Saudi Arabia - Riyal c.) There is no basis professional etiquette to follow.

Collections.

A. Background of Industry.

(A) It is difficult to estimate the volume of collections handled in Pakistan. Professional collection agencies do not operate in these countries. Collections are only handled by lawyers. In Pakistan collections are done on both consumer and commercial debt, however in Bangladesh, Iran and Saudi Arabia, on commercial accounts are collected. (B) There is no licensing or bonding requirements as collections are only done by lawyers.

C. General Procedures.

1. Typical steps undertaken by a lawyers are as follows. If the debtor is not known then a legal notice is sent, if the debtor is known a polite letter is sent. If the debt is not paid then the debtor is contacted by telephone, and personal visits are also made. If the debtor fails to pay, legal action is then suggested.

D. Charges & Remuneration.

1 &2. Lawyers generally charge commission on a successful recovery. When legal action is taken, the fees are required to be paid upfront. Some lawyers charge a handling fee. 3. Collection charges can not be passed onto the debtor. 4. Interest can not be added to an unpaid bill, however in Pakistan and Bangladesh if the matter is taken to court then interest can be charged. Granting of interest in not permissible in Iran and Saudi Arabia.

E. Accounting & Remitting.

1. There is no restriction in sending money abroad in Pakistan and Saudi Arabia. In Iran and Bangladesh payments can be sent after purchasing US Dollars or Pound Sterling from the open market. Procedures to remit the money is lengthy and very difficult in Iran and Bangladesh, therefor the open market<