Industry Confederation: Iran has potential to withstand sanctions

Business Materials 8 November 2018 08:20 (UTC +04:00)

Baku, Azerbaijan, Nov. 8

By Elnur Baghishov - Trend:

The Islamic Republic of Iran has great potential, the Member of Presidium of Confederation of Iranian Industry Mehdi Karimi Tafreshi said in an interview with IRNA news agency.

If this potential is used properly, it will be possible to withstand all the pressures imposed by the US, he added.

He noted that Iran possesses 12 percent of the world’s oil reserves and 25 percent of the world’s gas reserves.

Tafreshi further explained that the Islamic Republic has great mining resources only 7 percent of which have been discovered. In addition, the country has water boundaries with the length of 2,700 km, as well as maritime economy, transit potential, agriculture, and specific position in economic, climatic and geographical terms.

“The cost of local raw materials production in the Iranian economy is about $400 billion. The major part of exports in Iran falls to the share of oil and gas exports. Iran ranks 4th in the world in terms of oil production and accounts for a large share in the world’s total gas reserves,” he said.

The member of presidium of the Confederation of Iranian Industry stating his attitude to the sanctions, reminded that during the previous sanctions, such countries as India and China were not enthusiastic about reducing the volume of oil purchased from Iran.

These two countries have again been included in the list of the countries exempted by the US from the obligation to comply with the current round of the sanctions, he added.

Tafreshi said Iran can encourage a number of countries to purchase Iranian oil by pursuing logically sound policies and by offering discounts in oil prices.

“The ways of withstanding the sanctions include strengthening small and medium industry sector in the country, fundamental development of local industry, provision of comprehensive support for consolidation of local production sector,” he noted.

Tafreshi said using other foreign currency as an alternative and substitution to the US dollar is another method of resistance to the sanctions which the country needs urgently.

“Thereby, the problem that emerges during currency exchange transactions conducted with a number of banks of the world, can be solved. Currently, Iran is taking to arrange exchanges with some neighboring countries, such as Turkey and Iraq. These steps can enable the country to eliminate the problem encountered by many companies wishing to engage in exchanges with Iran,” Tafreshi explained.

“Currently, the country urgently needs economic transparency, fight against economic rabble-rousers, abusers and smugglers. At the same time, the economy built on the basis of imports and depending on foreign currency, is one of the structural problems of the country. If this issue is not reformed thoroughly, then it will not be possible to solve the fundamental problems existing in the country’s economy,” he noted.

Tafreshi said the reform in the banking system is one of the fundamental factors in management of a country’s economy. This, in turn, can create prerequisites for prevention of growth of inflation and provision of economic prosperity.