PM approves investment Policy 2013 – Alfalah Securities Limited

Karachi, February 07, 2013 (PPI-OT): Prime Minister Raja Pervez Ashraf has approved Investment Policy 2013 prepared by the Board of Investment (BOI).

According to Alfalah Securities Limited, the policy would now be submitted to the Cabinet for approval. The 5-year Investment Policy 2013 includes gross Foreign Direct Investment (FDI) target of USD 5.5 bn where the federal government anticipates a progressive increase in net FDI inflows of USD 2 bn in the first year and an increase of about 25% in subsequent years to USD 2.5 bn in 2014, USD2.75 bn in 2015, USD 3.25 bn in 2016 and USD 4 bn in 2017. The government is eyeing an average annual GDP growth of 5% and FDI stock at 20% of GDP.

To achieve the FDI targets, a FDI Strategy for Pakistan 2013-17 was also formulated that includes reducing the cost of doing business in Pakistan, reducing the process of doing business and ease of doing business with creation of industrial clusters and special Economic Zones. It also covers the idea of linking trade industrial and monetary policies for greater convergence and to facilitate market entry of Small and Medium Sized Enterprises (SMEs). The draft proposes removal of State Bank of Pakistan and SECP equity caps on banking and non-banking financial institutes.

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