Iran prepares package of incentives to boost domestic production

TEHRAN – The Iranian Industry, Mines, and Trade Ministry has prepared a special package of incentives to boost the domestic production.

The incentive program has been submitted to the administration to help the national economy come out of recession, the IRNA news agency quoted Iranian Industry, Mines, and Trade Minister Mohammadreza Ne’matzadeh as saying on Tuesday.

Ne’matzadeh made the remarks in a ceremony which was held in Tehran on Tuesday to mark the National Day of Industry and Mine.

The Ministry has adopted strategic development policies in line with guidelines of the Supreme Leader to promote the economy of resistance, he stated.

He emphasized that in order to cope with the economic recession, the industry and mine sector’s share of banking facilities should be increased.

The Ministry has also resumed providing exemplary exporters with incentives to help boost non-oil exports, he added.

In April, the International Monetary Fund (IMF) said Iran’s economy had contracted by 1.7 percent in 2013. However, the economy will come out of recession in 2014, the report added.

The Iranian economy will grow by 1.5 percent in 2014 and the growth rate will hit 2.3 percent in 2015, according to the report.

Recently, Iranian President Hassan Rouhani said various institutions under the administration are now bound to carry out the “resistance economy” plan, which has been outlined by Supreme Leader Ayatollah Ali Khamenei to counter sanctions of the West.

The administration would work with the other branches of government to materialize objectives of the plan, Rouhani said.

On February 19, Ayatollah Khamenei outlined the general policies of the program to promote the “economy of resistance”, which can lead the Iranian nation to victory in “the imposed economic war” with the West.

Under the program, the government must take action to expand the production and exportation of knowledge-based products, increase domestic production of strategic goods, and develop markets in neighboring countries.

It also encourages greater privatization and increased exports of electricity, gas, petrochemicals, and oil byproducts instead of crude oil and other raw materials.

Interest in Iran as a destination for business is growing ahead of the international talks, which are being held to resolve the deadlock over Iran’s nuclear program.

If the discussions between the six major powers and Iran progress smoothly, it is expected that the sanctions imposed on the country will be eased and commercial routes will be revived.

Business Monitor said in its April report that the Iranian economy will return to growth in 2014, as the improvement in relations with the West and better macroeconomic management will lead to an improved outlook for exports and increased business and consumer confidence.