Tehran, Iran, August 18
By Mehdi Sepahvand -- Trend:
Iran is preparing a comprehensive plan defining the country's economic relations in the post-sanctions era.
"The government will prepare the plan in cooperation with the private sector," Economy Minister Ali Tayyebnia said, Shana news agency reported August 18.
In a comprehensive deal reached in July 14 between Iran and the group P5+1 (the US, UK, France, Russia, China, and Germany), it was agreed by the world powers that previous economic sanctions on Iran be lifted according to the Joint Comprehensive Plan of Action (JCPOA).
Asked about private sector concerns over the flow of foreign investors to Iran after sanctions, Tayyebnia said Iran's current investment law is powerful enough to take care of that situation.
"The comprehensive plan on foreign investment is already prepared. It clarifies target countries along their potentials as well as trade funding and even the way to conduct relations with the target countries," he said.
The minister added the plan aims at securing sustained development for Iran.
Iran's total GDP stands at around $400 billion. This puts Iran at 31st largest economy in the world. Iran has to urgently enter $1000 billion nations club in order to be among the top twentieth. If this objective materializes, Iran can expect to attract some 20-25 percent of the EU's foreign investments on a regular basis.
In the oil sector, Iran wants long-term investment and encourages foreign investors to enter into long-term contracts. The main difference of the new type of contract from the usual 'buy-back' contract in Iran is that the IPC (Iran Petroleum Contract) will be signed up to 25 years vs seven years of 'buy-back'. By keeping western investors in the country for a quarter of century but not five-seven years, Iran may plan to avoid possible new sanctions of any kind, since they will have a negative impact on the investors as well, who are more likely to be Western ones.
Edited by CN