ISLAMABAD - In a major move to attract foreign investment in Pakistan, President Asif Ali Zardari Thursday signed the 'Arbitration (International Investment Disputes) Bill, 2011 into a law at a special ceremony held at the Aiwan-e-Sadr. The Arbitration Bill, 2011 that was passed by National Assembly on November 5, 2010 and the Senate on April 1, 2011 would help provide an effective mechanism to investors to secure their investment in Pakistan. The signing ceremony was attended among others by federal ministers, members of Parliament, federal secretaries, Presidents Chambers of Commerce & Industry, President Overseas Chamber of Commerce, President Women Chambers of Commerce & Industry, representatives of business community, foreign and local investors and other officials. This is a giant step forward to create confidence in foreign investors and bring transparency in the settlement of investment disputes, the President said on the occasion, adding: I wish to congratulate the Parliament for passing this important legislation. He said that the government had already announced liberal incentives package for foreign and local investors and expressed the hope that the current legislation would prove instrumental in attracting FDI and further promote investment climate in the country. Commenting on the bill, Presidential Spokesman Farhatullah Babar said that the government had already signed and ratified the international convention on settlement of investment disputes between the states and nationals of other countries. Domestic legislation was a pre- requisite for benefiting from the provisions of the convention, he added. The convention envisages establishment of an international centre for settlement of investment disputes under the auspices of the World Bank. It also envisages constitution of conciliation commission and arbitral tribunal. The International Convention on Settlement of Investment Disputes (ICSID) facilitates conciliation and arbitration on investment disputes between the contracting states and nationals of other contracting states. The spokesperson said that with this new legislation a major disincentive for foreign investors had been removed who will now feel reassured to invest in Pakistan. He said that the enactment of the law was part of the Presidents plan of incentivisation and offer new incentives to address the countrys economic and investment problem. The incentivisation of foreign remittances had already resulted in increasing Pakistans earning from foreign remittances from a little over $ 6 billion in 2007 to an expected almost $ 11 billion this year.