Since it became independent in 1947, Pakistan has had a continuing dispute with India over Kashmir, economic underdevelopment, and political instability. However, there is hope that the Kashmir problem can be resolved, that the economy will continue to improve, and that President Musharraf will be able to attain political stability. Another reason for hope for Pakistan is the development of its legal foundation. One example is the Electronic Transactions Ordinance (ETO) of 2002, an accomplishment that should boost the proliferation of E-commerce and E-government in the country. The ETO recognizes the legal validity of electronic records, messages and signatures. It recognizes all forms of electronic signatures, although it has a preference for the heightened security that is afforded by the digital signature. Commensurate with that preference, the ETO establishes a voluntary system of licensing of Certification Authorities, prescribes detailed rules for them to follow, and assigns the Certification Council to oversee their activities. The ETO contains a list of computer crimes, some of which are punishable by up to seven years imprisonment. Is there room for improvement of the ETO? Yes. Recommended amendments are to: (1) change to a compulsory system of licensure of CA's; (2) begin to mandate E-government in selected agencies; (3) add consumer protections; (4) eliminate or reduce the ETOs exclusions; and (5) expand the list of computer crimes.