Iran to have some $90 billion invested in country, to boost domestic production
Baku, Azerbaijan, May 14
By Fatih Karimov - Trend:
Iran's Vice -President for Planning and Strategic Supervision, Mohammad-Baqer Nobakht said that about $90 billion will be invested in the country, Iran's IRIB reported on May 14.
Nobakht said that some $57 billion will be invested through the U.S. dollars, while the rest (1400 trillion rials) in national currency.
He said that such investment, which is projected to be made in the next 10 months, will prop up the domestic production in the country.
Nobakht added that the government pursues the goal of reducing the inflation rate through overcoming the economic recession.
The official exchange rate of USD is currently 25,535 rials.
On March 10, Nobakht said that the second phase of Iran's subsidy reform plan has envisaged the allocation of 100 trillion rials (about $4 billion) to support the domestic production.
Domestic producers should be supported as production costs will be increased due to the fact that prices of energy carriers will be increased based on the subsidy reform plan, he explained.
The Iranian government implemented the first stage of the subsidy reform plan toward the end of 2010 in an attempt to wean the country off food and fuel subsidies. At the time, President Mahmoud Ahmadinejad called it the "biggest economic plan of the past 50 years."
The plan allows the 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.
The subsidy reform plan pays 45,500 rials (about $18) to Iranians, eliminating subsidies for fuels and some commodities.