Letter of Proposal Permission Needed 7th of March, 2013 Abdul Moiz, Institute of Business Management , Karachi.

. Dear, Sir Thank you for the opportunity to let me participate in the term project report based on Financial Institutions of Pakistan. My report is based on Mutual Funds Industry of Pakistan, its growth and sustainability over the time. Mutual Funds were introduced in Pakistan in 1962, with the public offering of NIT (National Investment Trust). Currently, this is the only open ended mutual fund operating in public sector. Although Pakistani mutual funds have experienced a massive growth during the period under study (1999 to 2005 ) with Net asset value (NAV) growth from Rs.16 billion to phenomenal Rs.137 billion till June 30th, 2005, however, comparing Pakistani mutual fund industry internationally it is of a tiny size. Pakistan holds only 1.33% mutual fund assets to primary securities, in contrast to India with 3.7%, Malaysia 4.0%, Hong Kong 20.3%, and South Korea 16.5%. These facts indicate that mutual fund industry in Pakistan has significant room to grow. Paid-up capital may look substantial but the size is still too small as compared to international standards. My research on Pakistani Mutual Fund market entails the reasons for small size industry of Pakistan as compared to the international Markets even after having a sober Paid-up Capital.

Most sincerely, Abdul Moiz (11540) Enclosure: Financial Institutions Term Report