Rouhani administration approves $1.2 billion foreign investment plan

Business Materials 4 December 2013 16:18 (UTC +04:00)

Baku, Azerbaijan, Dec.4

By Fatih Karimov - Trend:

The administration of Iranian president Hassan Rouhani has approved 35 foreign investment plans, worth $1.2 billion, since it took office about 100 days ago, the Fars News Agency reported on Dec.4.

According to a report released by the Iranian economic ministry, the number of real and legal entities, as well as Iranian expatriates, ready to invest in Iran has increased during recent months.

Direct talks with banking systems in India, Pakistan, Oman, Afghanistan, Tajikistan, and Sri Lanka have paved the way for removal of money transfer problems.

Iran and six world powers reached a breakthrough deal on November 24 on Tehran's nuclear program. The two sides have signed a joint "plan of action". The deal signed in Geneva suggests some softening on sanctions against Iran.

On November 25, Spokesman of Iran's administration, Mohammad-Baqer Nobakht said that the nuclear deal will positively affect Iran's economy, and the sanctions will decrease as time goes on.

He went on to say the mentioned assets are available for use, but Iran will not be converting the entire sum to national rial currency.

Iranian Parliament Research Center has released a report, which says Iran's economy contracted 3 percent during the last Iranian year which ended in March 2013, and it is estimated to contract 1.3 percent more during the current Iranian solar year.

While Iran earned $578 billion of petrodollars during 8 years longed Mahmoud Ahmadinejad presidency, it equals to a half of Iran's total oil incomes for the last 103 years.

According to the report, an average economic growth during last 8 years is 3.52 percent, while Statistical Centre of Iran said earlier that Iran's economy contracted by 5.4 percent during last solar year.

During Mahmoud Ahmadinejad's presidency, all of government incomes reached $864 billion from petroleum sales, taxes, privatization, issuing bonds, etc.

The Parliament Research Center said that during 2006-2011, about 300,000 job opportunities have been lost, namely, number of the demands for labor force decreased from 20.84 million to 20.51 million.

These statistics are completely in contrast with Ahmadijenad's claims about 5.6 percent GDP growth or created 7 million new jobs during his 8 years presidency.

The report also says that Ahmadinejad's government has predicted allocating 290 trillion rials to complete 5,540 projects, while at the end of his presidency 970 trillion rials has been allocated to the projects, while only 1,400 projects have been completed.