Privatization in Iran witnesses a huge fall
Baku, Azerbaijan, April 2
By Gazenfer Hamidov – Trend:
The Iranian administration has transferred over 13,614 billion rials (each USD makes 37,700 rials based on official rate) worth of the state-run shares to the private sector during the last fiscal year (ended March 20).
The Iranian Privatization Organization(IPO) managed to sell 1,008 billion rials of assets on the Stock Exhcnage in the period, according to the organization’s latest data.
Compared to the last fiscal year (ended March 2017), when 5,306 billion rials of state-run companies were sold on Stock Market, the value of the privatization through capital market has witnessed a dramatic decrease this year.
Also, 12,606 billion rials of governmental companies’ shares were sold through tenders.
The statistics indicate that the value of privatization in Iran registered significant decrease during the last fiscal year.
The value was 49,568 billion rials in the preceding fiscal year, which means a 74.6 percent, fall for the last fiscal year.
Since the Privatization Organization was launched in 2001, it has privatized 1,448 trillion rials worth of government shares.
Through privatization of governmental companies, Iranian government seeks to restructure the country's economy and reduce the government's expenses by promoting the private sector.
Increasing productivity levels in large enterprises is also among the main objectives of selling the shares of governmental companies.