...

Economic Reforms in Iran Can Cause Inflation: Member of Iranian Parliament’s Commission

Business Materials 24 November 2008 18:45 (UTC +04:00)

Iran, Tehran, 24 November /corr. Trend A.Namdari / "The economic reforms in Iran, which are suggested to be held within the project, presented for discussions in the Parliament of the country, will lead to the price increase for the goods and services," the member of the Islamic Republic's Parliamentary Budgetary Commission, Muhammedali Noura, said on 24 November. 

"The implementation of this project can lead to price hike and reduction in the purchasing capability of the population of Iran," said Noura.

The project of economic reforms, proposed by the Administration of the President of Iran Mahmoud Ahmadinejad within the program on the improvement of the economic policy, envisages privileges in goods and services for population.

Many economic experts of this country are concerned by the results of this project, considering that its implementation will lead to the unpredictable results.

"If the State will give guarantee that the realization of project will not affect the purchasing capacity of population, the Parliament will vote for this document without hesitation," said Noura.

He said that the concern of the MPs is connected also with the fact that the implementation of the project will lead also to an increase in the level of poverty in the society.

Noura thinks that one more problem in the realization of this project is that if these privileges will be allowed directly, "consumer stimulus in Iran" will lead to the inflation.

The proposals on reduction in the results of consumer tendency, expected as a result of the realization of this project, were also included in the agenda of the Parliament. One of the proposals envisages providing targeted social aid to the population, which can be useful for a decrease in the level of inflation in the country, Noura said.

Furthermore, it is proposed to provide coupons for basic goods to population. However, in exchange of the coupons used, the State will return cash money to population.

Nouri said that this project will increase the level of cashless accounts in the country.

At present, the initial plan of economic reforms is considered by the Commission of the Parliament.

The project is expected to be realized in the last quarter of the present year (on the Iranian calendar).

Document will be presented for discussions of the Parliament next month.

The correspondent can be contacted at: [email protected]

Latest

Latest