Expert talks on 4 obstacles faced by Iranian economy

Business Materials 1 April 2019 20:19 (UTC +04:00)

Baku, Azerbaijan, April 1

By Elnur Baghishov – Trend:

The Iranian economy faces such obstacles as banking system, currency, tax and privatization in terms of support for the national production, Iranian expert in economic issues Ali Sadiqi Hamadani said.

Big reforms must be undertaken in these spheres, Hamadani added, Trend reports referring to ISNA.

He added that the production in the Iranian economy requires huge funds.

This is the result of the unsuccessful banking system and therefore, the reforms must be conducted in this system to support production, Hamadani said.

The market value of the foreign currency is not real and does not correspond to the realities of the Iranian economy, Hamadani added.

As a result of this process, producers lose interest in export, he said.

Hamadani said that if the government stops intervention into the currency market and the currency price is set at floating exchange rate, the interest of producers in production and export will increase.

Regarding the tax system, he stressed that the same steps were taken in Iran's tax system during economic development or recession. But this is an insignificant nuance.

Hamadani said that the tax system should consider prices on the basis of different economic conditions.

Commenting on privatization, he said that about 80 percent of Iran's economy belongs to the public sector and semi-public sector.

That's why the government must reduce its role in the economy and the private sector must focus on the production, Hamadani said.

He added that according to the World Bank report, Iran ranks 128th among 190 countries in terms of labor and income.

This aspect reflects the necessity of improving labor and income in Iran to support production, Hamadani added.