Iranian administration committed to carry out privatization

Business Materials 6 April 2012 13:34 (UTC +04:00)

Azerbaijan, Baku, Apr. 6 / Trend F.Milad/

The Iranian administration is committed to go on with implementing privatization plans as the past years and complete large plans which have progressed up to 60 percent, the finance and economy minister Shamseddin Hosseini said.

"The government paid some 980 trillion rials (around $80 billion) to development plans and current affair projects last calendar year, which ended on March 19, showing 80 trillion rials compared to the year before," Shamseddin Hosseini said, IRNA news agency reported.

The minister added that the Subsidy Reform Plan, which was launched in December 2010, has saved over $15.2 billion.

During 15 months of implementing the Subsidy Reform Plan in Iran, some $15 billion has been saved in costs, the deputy economy minister said in March.

Mohammadreza Farzin told Mehr news agency that the first phase of the plan has been successfully carried out. If the plan was not implemented, we would have to import billions of dollars worth of gasoline per year, he added.

The second phase of implementing the plan has envisaged removing subsidies of some three million Iranian families.

The Iranian government is planning to pay more cash subsidies to the economically vulnerable strata and cut subsidies of the well-off families.

The plan allows the Iranian government to gradually slash subsidies on fuel, electricity, and certain goods over the course of five years, with low-income families being compensated with direct cash handouts.