TEHRAN, Iran, June 10
Trend:
Iran's Chabahar Free Zone has increased production despite coronavirus spread and sanctions which affected the production units, Managing Director of Chabahar Free Zone Abdolrahim Kordi told Trend.
"Last Iranian year [started March 21, 2019] was a difficult period for productive and economic sectors due to fluctuation in foreign currency market, [the US] sanctions and the Central Bank of Iran's trade policies," Kordi said.
Efforts were taken to maintain and increase production in Chabahar Free Zone, he noted adding that production increased by 70 percent compared to the preceding year, while the target was higher.
"As many as 108 production units in Chabahar were active in the free zone during last Iranian year, whereas 260 units have work permits. About 150 enterprises were semiactive or even closed due to foreign currency policies for import of basic material and fluctuations in market," the managing director said.
"The investments in Chabahar Free Zone were good compared to 2018; total of 165 new investment contracts were signed, which is 20-percent growth, and $300 million was invested showing 29-percent increase," Kordi said. "In 2018, foreign investments worth $7 million were made in Chabahar Free Zone, and $15 million was invested last Iranian year [started March 21, 2019]. However, no new investment has been made so far.".
"Most of the investors were from Pakistan, India and Afghanistan who provided funds for downstream petrochemical and food industries and for production of sanitary items," he added.
"Our current plans include increasing production capacity in active units and helping 60 units become active," he said. "The other step is to commission units that construction of which is completed from 60 percent to 95 percent."
"The strategy to change the zone profile from trade to production has been developed during past four years. Chabahar has turned to a rice processing hub and the other objective is to launch the manufacturing of plastic products," Kordi noted.