Iran's privatization plan not working as should due to lack of strategy

Business Materials 26 February 2019 15:04 (UTC +04:00)

Tehran, Iran, Feb.26


The assignment of production units in Iran to the private sector hasn't been working out well due to lack of strategic development plans.

Member of Parliament's council of internal affairs committee Ahmad Alirezabeighi discussed the privatization approach in recent years in an interview with Trend.

"While the Supreme leader announced the rules and regulations of the article 44 of constitution, he insisted it can be considered as a new revolution in Iranian economy," said Alirezabeighi.

The official indicated that the regulation has been lacking strategy in recent years, adding that the result of confrontations with article 44 in recent years was abused by certain groups for profits.

He went on to add that there are some industries, assigned to the private sector, that aren't profitable.

Alirezabeighi went on to say that the industrial units in the country should be on agenda for privatization, to help reduce the social gap.

Noting that privatization could've improve the employment in Iran and further development, but instead it has damaged the national production of public units and prevented creation of new jobs.

In 2007, Iran's Supreme Leader Ayatollah Khamenei requested that government officials speed up implementation of the policies outlined in the amendment of Article 44, and move towards economic privatization.

Khamenei also suggested that ownership rights should be protected in courts set up by the Justice Ministry; the hope was that this new protection would give an additional measure of security and encourage private investments.

Some 80 percent of the companies, subject to Article 44 of the Constitution, would be transferred to public ownership, 40 percent of which will be conducted through the "Justice Shares" Scheme and the rest through the Tehran stock exchange.