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Iran's gov't looks to sell its companies to save for future investments

Business Materials 30 December 2019 19:33 (UTC +04:00)

TEHRAN, Iran, Dec.30

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Iran's government is attempting to sell its assets and owned companies, aiming to use revenues to invest in newly established companies, said Chairman of Investment and Capital Committee of Iran Chamber of Commerce Abbas Argon, Trend reports via ILNA.

According to Argon, this strategy would help save costs, while privatization of companies would eventually help with development projects and bring more revenues to the government.

"In addition to sales of 400,000 billion rial worth (about $9 billion) of government assets, also the government plans to sell securities and bonds worth 800,000 billion rials (about $19 billion), Argon said.

"Half of the public companies that are to be assigned to the private sector were in the loss, so it would be hard to attract investments from the private sector," he said.

"In terms of revenues, the next Iranian year (begins March 21,2020 )budget plan has been put together with optimism, although it’s unlikely that 1 million barrel of oil per day would be sold," he said.

"On the other hand if the tax reform is not implemented, there would be damages in sectors that require financial transparency," he said.

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