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Iran Economy Update
MONDAY MAY 15TH
Details of ministry of Industry’s plan to implement Economy of Resistance policies announced
The Iranian ministry of Industry, Mine & Trade has released details of the plan the ministry will pursue in line with implementing the Economy of Resistance Policy. Before going into details, let me open a parenthesis here to provide a brief explanation about the concept of the „Economy of Resistance‟ policies.
In a statement issued by the ministry of Industry, Mine & Trade this week, two priorities have been defined in this direction, which include: (1) empowering, consolidating and developing the Small & Medium size Enterprises (SMEs) with the aim of increasing the value of their non-oil exports by $2 billion [annually] and (2) completion and launch of 50 important and national plans. The ISIPO (Iranian Small Industries & Industrial Parks Organization) has been assigned to carry out the first plan, which is empowering the SMEs, according to Hossein Abouee- Mehrizi, the ministry of Industry‟s planning deputy. This ministry of Industry official has also said that the „Economy of Resistance Command Headquarter‟ has instructed implementation of the
“Production & Employment Boom” package, prepared in five sections including (1) improving domestic production capability, (2) investment and funding, (3) attracting, advancing and deepening technology, (4) developing non-oil exports and implementing a purposeful import policy and (5) employment and empowering the workforce. Hossein Abouee-Mehrizi said that the ministry of Industry has been tasked with implementing these five directives and their sub- sectors and in doing so, it will cooperate with other ministries.
Iran’s car sector is a promising market for cooperation with foreign brands: IDRO official With the capacity of producing two million cars annually and its access to the big regional markets, Iran‟s car market provides a good opportunity for participation of Brazilian auto part manufacturers, said the IDRO Managing Director in a session participated by the Association of Brazilian Auto Part Manufacturers. According to the daily Donyay-e Eghtesad, Moazzami said that last year, 1.4 million cars were manufactured in Iran and for this year, producing 1.6 million cars has been planned. Moazzami underscored that Iran is going to develop its market with participation of owners of famous car brands. He said that since the implementation of the JCPOA, six cooperation contracts have been signed in car making in Iran which will end up producing cars with lower cost and higher quality. He said that last year the Iranian car industry turnover was $25 billion ($16 billion car production, $3 billion car imports, and $6 billion auto parts).
Meanwhile, Moazzami has told the Donyay-e Eghtesad economic newspaper that two senior executive directors from Renault are visiting Tehran and after resolving a number of differences, the contract with this French company will most likely be signed in the next few weeks.
Moazzami said that the first products of Renault will hit the Iranian market in summer 2018.
CBI Governor says banking system couldn’t benefit in full capacity from sanctions relief CBI Governor Valiollah Seif reiterated that in spite of the lifting of sanctions, the coutnry‟s banking system is still struggling with some problems. “The Joint Comprehensive Plan of Action (JCPOA) managed to hit the target of full elimination of sanctions but unfortunately, our banking system has not been able to reap the fruits completely due to the failure in implementing some international standards,” said Seif this week. “Our banks should adopt the international
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standards, practice transparency in their financial system, and pursue instructions in countering money laundry and funding terrorism in order to pave the way for developing correspondent relationship with foreign banks,” he added.
Iran continues talks with European firms on gas exports
NIGC Managing Director Hamidreza Araghi said exporting natural gas to Europe is possible either through pipeline or in LNG (liquefied natural gas) form. Araghi said negotiations are going on with different European companies, but declined disclosing the names saying the talks are still not final.
Exhibition Watch: 5th International Exhibition of Rail Transportation
The 5th International Exhibition of Rail Transportation, Related Industries, and Equipment (15-18 May) started its work this morning in Tehran in presence of minister of Road & Urban Development as well as the managing director of the Islamic Republic of Iran Railways. 160 domestic firms as well as 130 companies from 16 countries including Sweden, Switzerland, Belgium, France, India, Ukraine, New Zealand, Turkey, Italy, Lithonia, Spain, Russia, the Republic of Czech, China, Germany, and Serbia have attended the event, according to IRNA.
