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Iran Economy Update
Issue 66/2017 WEDNESDAY JUNE 21ST
These days, Iranian media are buzzing with debates and speculations about a likely split of the three ministries of (1) Industry, Mine
& Trade, (2) Road & Urban Development, and (3) the Youth & Physical Exercise. On 11 June, the Iranian Parliament approved single-urgency of the government-proposed bill in this respect, which if being approved the lawmakers, five ministries as well as an organization will be established instead of the aforementioned existing three ministries.
The ministries of Industry, Mine & Trade, Road & Urban Development, and Youth & Physical Exercise were established under the presidency of Mahmoud Ahmadinejad in 2011 by the merger of four ministries and two organizations (See the following graphic designs). At that time, the then government said the mergers took place in line with the objective of downsizing the government. With preparing the bill of the split of the ministries, the government of Rouhani is going to revive the former ministries.
Ministry of Industry, Mine
& Trade
Ministry of
Industries & Mines
Ministry of Commerce Rouhani wants
to split into Merged
in 2011 to Ministry of
Commerce Ministry of
Industries & Mines
Rouhani wants to split into Merged
in 2011 to Ministry of Road
& Transportation
Ministry of Housing
& Urban Development
Ministry of Road & Urban Development
Ministry of Road
& Transportation
Ministry of Housing & Urban Development
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Jamshid Ansari, Vice president and head of the Administrative & Recruitment Affairs Organization said on Saturday that the decision for the split of the ministries will be finalized by the lawmakers before the formation of the new administration. Ansari explained that the government submitted a double-urgency bill to the parliament in May for the split of the ministries but the lawmakers voted for single-urgency of it (According to the parliament law, double-urgency plans/bills are given immediate priority for being debated on the parliament‟s floor. If a double-urgency status is approved by the lawmakers, it means they will move the bill/plan to the front of the line for debate/discussion. In a single-urgency status, however, the bill/plan only takes precedence over regular legislations.
As the above graphs shows, the two ministries of Commerce and Industries & Mines were merged in 2011 under the former administration, and the government of Rouhani seeks the revival of the Ministry of Commerce. The bill was sent by President Rouhani to the parliament on May 7 under the name of the “Bill of reforming part of the government‟s structure”. The Ministry of Industry, Mine & Commerce has shown opposition to the bill, with Vice Minister Mojtaba Khosrowtaj saying on May 1st that industry and commerce affairs should be integrated and not separated. Mahmoud Hojjati, the incumbent minister of Agriculture is another senior government official who‟s shown opposition to the bill of splitting up the Ministry of Industry, Mine & Trade into the Ministry of Industry & Mine and Ministry of Commerce. Tasnim news agency wrote on June 10 that the split of the ministry will lead to the significant changes within the ministry of Agriculture as well. Tasnim has published the first two articles of the bill of reforming part of the government‟s structure:
Article 1- in order to develop domestic and foreign trade, the Ministry of Commerce will be established with having its objectives, missions and responsibilities separated from the existing Ministry of Industry, Mine & Commerce;
Clause 1 – With the approval of this law, the existing Law of „Concentrating Agricultural-related Duties & Authority in the hand of Agriculture Ministry‟ will be revoked, and all the authority and responsibilities that according to that law was delegated to the Ministry of Agriculture will be revoked and delegated to the new Ministry of Commerce.
Ministry of Physical Exercise
The National Youth Org Ministry of
Physical Exercise &
Youth Physical
Excessive Org
The National Youth Org
Rouhani wants to split into Dissolved
in 2011
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Clause 2 – with the split of the commercial affairs from the ministry of Industry, Mine & Trade, this ministry will have its named changed to the ministry of Industry & Mine and will continue to exercise the responsibilities it had before its merger [in 2011]
Clause 3 – All the responsibilities, duties and authority vested in the ministry of Industry, Mine & Commerce will henceforth be divided between the Ministry of Industry & Mine and Ministry of Commerce.
Article 2 – In order to concentrate responsibilities and establish integrity in the road and transportation sector, the ministry of Road &
Transportation will be established and all the road/transportation-related objectives, missions, and responsibilities will be separated from the existing Ministry of Road & Urban Development.
Customs administration releases report on Iran’s foreign trade in 1395
The Iranian Customs administration has published the statistics on the country‟s foreign trade in 1395, which has been summarized in the following tables and charts.
Table 1 – Iran‟s foreign non-oil trade in 1395
Item 1395 1394 percentage change
imports (billion $) 43.68 41.53 5.16%
non-oil exports (billion $) 43.93 42.42 3.54%
1395: (21 March 2016- 20 March 2017)
Table 2 - Iran’s major non-oil export targets in 1395 country
1395 1394 y-o-y
Percentage change (%) export
value ($bn)
share in total exports (%)
export value ($bn)
share in total exports (%)
China 8.37 19.07 7.67 18.10 9.11
UAE 7.43 16.93 7.23 17.06 2.75
Iraq 6.11 13.91 6.22 14.67 -1.84
Turkey 3.24 7.39 3.36 7.93 -3.53
Korea 2.87 6.55 0.87 2.06 229.89
other 15.88 36.15 17.05 40.19 -6.85
Total 43.93 100 42.42 100 3.54
4 Table 3 - Iran’s major import sources in 1395
country 1395 1394 y-o-y
Percentage change (%) Import
value $bn
share in total imports %
Import value
share in total imports
China 10.75 24.62 10.47 25.22 2.64
UAE 6.40 14.67 7.76 18.69 -17.49
Korea 3.46 7.92 3.68 8.86 -5.96
Turkey 2.73 6.27 2.98 7.19 -8.36
Germany 2.53 5.81 1.82 4.39 39.23
other 17.78 40.71 14.80 35.65 20.14
Total 43.68 100 41.53 100 5.16
China , 19.07%
UAE, 16.93%
Iraq, 13.91%
Turkey, 7.39%
Korea, 6.55%
other , 36.15%
share of Iran's major non-oil export targets in 1395
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The two notable points in the SCI statistics about Iran‟s foreign trade last years are:
1) The significant increase in the share of the Republic of Korea in receiving Iran‟s non-oil exports in 1395 (table 1)
2) The significant increase in the value of Germany‟s exports to Iran, as opposed to the decline in the value of exports of Korea, Turkey and UAE to the country
China 24.62%
UAE 14.67%
Korea 7.92%
Turkey 6.27%
Germany 5.81%
Other 40.71%
share of Iran's major import sources in 1395
