ISLAMABAD - The government is likely to present new investment policy in next cabinet meeting for approval, aiming to attract foreign investments for the economic prosperity of the country. The five-year Investment Policy 2013-17 envisages a target of gross Foreign Direct Investment (FDI) of $5.5 billion per annum. Minister of State for Finance and Economic Affairs and Chairman Board of Investment Saleem H. Mandviwalla has said that new investment policy has been finalised and it would also be presented before the federal cabinet in its next meeting for approval. The term of minimum limits of investment has also been abolished to encourage small and medium level investors for alleviating poverty from the country by creating more job opportunities in the private sector, he added.It might be mentioned here that the government wants to attract foreign investment in the country through new investment policy, as poor state of the economy has failed to attract foreign investment in last five years. The key reasons for the lack of foreign investment in the economy are dismal security and poor law and order conditions and a volatile political environment. According to the SBP, FDI has slumped by 11.6 percent to $525.1m in the first seven months (July-January) of the current fiscal year 2012-13 as against $594 million during the same period last year. The govt would present the investment policy in the cabinet meeting that already approved by the PM Raja Pervez Ashraf on February 6. The Board of Investment (BoI) has prepared the investment policy 2013, envisaging $5.5b annual investment target. The federal government was anticipating a progressive increase in net FDI inflows of $2b in the first year and an increase of about 25pc in subsequent years to $2.5billion in 2014, $2.75 billion in 2015, $3.25 in 2016 and $4 billion in 2017.Mandviwalla while addressing the business community at ICCI said that the draft of the investment policy was prepared by consulting the relevant stakeholders and taking the input from the trade bodies to promote trade and commerce in the country. He said that Special Economic Zones (SEZs) would be declared soon aimed at promoting local industry as well as attracting the foreign investments for the economic prosperity of the country. Rules of the SEZs would be submitted before the cabinet meeting for approval under which tax exemptions on the import of machinery and ten years income tax will also be provided. Industrial zone identified by the ICCI and Chakwal Chamber could also be declared as SEZs for the promotion of local industry and export-oriented trade in that area, he added.Under the SEZs bill, all the investors are being provided safeguard on their investment besides it will also help the next governments for continuation of economic policies for economic development in the country, he maintained.Speaking on the occasion, Zafar Bakhtawari, President ICCI lauded the dynamic role of Mandviwalla as Chairman BoI for promoting domestic and foreign investment to enhance Pakistan’s international competitiveness and exploring the new markets for Pakistani products.He urged the Government for promoting the economic diplomacy instead of political diplomacy for developing economic relations with the rest of the world as well as stressed upon introducing business friendly polices for economic development.Bakhtawari informed the State Minister that ICCI would establish an industrial zone in collaboration with Chakwal Chamber at Chakwal on motorway to facilitate the growth of industrial activities. He said that Ch Pervaiz Elahi, Deputy Prime Minister was also principally agreed to establish an export processing zone at Chakwal motorway because of relatively affordable property prices.