Baku, Azerbaijan, July 3
Trend:
The Iranian administration has transferred over 1,025 billion rials (each USD makes 42,500 rials based on official rate) worth of the state-run shares to the private sector during the current fiscal year (March 20-June 29).
The aforementioned governmental companies’ shares were sold through tenders, the Iranian Privatization Organization(IPO) said.
The Iranian government plans to privatize over 600 state-run companies during the current fiscal year till March 20, 2019, in order to earn some 106 trillion rials (about $2.52 billion) based on the budget for current year.
The Iranian administration transferred over 13,614 billion rials worth of the state-run shares to the private sector during the last fiscal year (ended March 20).
Over 1,008 billion rials of assets were sold on the Stock Exchange in the 12-month period, meanwhile 12,606 billion rials of governmental companies’ shares were sold through tenders.
Since the Privatization Organization was launched in 2001, it has privatized 1,447 trillion rials worth of government shares till June 29, 2018.
The IPO managed to sell 792 trillion rials of assets on the Stock Exhcnage so far (54.7 percent of overall sold shares), according to the organization’s data.
Also, 469.6 trillion rials of governmental companies’ shares were sold through tenders (32.5 percent).
About 12.6 percent of the shares of the privatized business have been sold on the country’s over-the-counter market as well (182 trillion rials).
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.