Does privatization in Iran serve public interest?

Business Materials 18 April 2019 14:28 (UTC +04:00)

Tehran, Iran, April 18


It privatization in Iran comes under criticism, the whole process will be delayed, Member of Iranian Parliament Mahmoud Bahmani told Trend.

"If any error or a problem is revealed in the course of privatization, it should be addressed and resolved by the inspectors,” he said criticizing news about mistakes made by Iran’s Privatization Organization (IPO). He noted that in these cases the public community demands that privatization be stopped, while in advanced countries governments make every effort to reduce the size of governmental institutions.

"The value appraisal of an institution or a company which is subject to privatization is not as simple as may be perceived,” said Mahmoud Bahmani referring to the process of estimating the value of state-owned companies in the course of privatizing an entity in question.

“Evaluation of machinery, land, manpower and other assets should be conducted in a company which is to be transferred to private sector. During that process, cases of corruption may occur, but we cannot blame the whole privatization,” he added.

“Only unprofitable companies, which are abandoned by the government in reality, are privatized in our country," noted the MP.