President Mahmoud Ahmadinejad on Thursday elaborated on the economic performance of the Ninth Government in the Iranian year to March 2007.
Noting that the government has taken big strides in improving public welfare, the chief executive noted that some are trying to create public discontent by publishing incorrect reports on Iran’s economic conditions despite advances made by the government in different economic sectors, ISNA reported.
Noting that some people believe that fighting economic corruption makes investment insecure, Ahmadinejad noted that Iranians are a capable, virtuous and idealistic nation and the government is seriously in confronting economic corruption and corrupt managers.
“The government will never sacrifice people’s interests for the sake of some opportunists. The government’s drive to fight corruption has increased public confidence and interest in investment to a considerable degree,“ the president added.
Referring to Iran as one of safest countries for investment in different sectors, he pointed out that despite the existing pressures, investment by Iranians and foreigners has considerably increased compared to the amount in previous years.
Noting that the government has adopted suitable strategies within the framework of Note 13 for reducing fuel consumption, the president referred to such strategies as getting rid of dilapidated cars, changing the fuel-type from gasoline to condensed natural gas (CNG), production of engine for CNG and boosting the quantitative and qualitative conditions of public transportation system are among the measures taken by the government.
Emphasizing on the impact of urban development on reducing current expenses, the chief executive pointed out that the government makes optimum use of public participation and private sector involvement in line with consolidating economic infrastructure, particularly in the deprived and rural areas.

There are a lot of discussions underway about the implementation of Article 44 of the Constitution which stresses on privatization. What attracts public attention is the way in which Telecommunication Company of Iran (TCI) has announced changing the deposits of its clients in the Stock Exchange. Some clients who have paid a lot of money to buy phone lines would like to know whether they are included in this plan. Discussions continue while the head of Iran’s Privatization Organization announced recently that the issue of transforming public deposits in the telecommunications sector to shares is still under study.
According to ISNA, Gholam Reza Heidari Kord-Zangeneh, head of Iran’s Privatization Organization has said that a committee has been charged with deciding the procedure for converting public deposits into shares. “The issue has been discussed by the committee only as an option,“ he noted.
In another comment Saber Feyzi, TCI managing director said that a joint committee of the Privatization Company and Stock Exchange will study the issue while ’the deposits can be converted to shares’.
He added, “We cannot say for certain that the deposits will be changed to shares so we will continue to collect more information. The joint committee will decide on what will happen.“
Meanwhile, secretary general of Iran’s Stock Exchange told ISNA that a good opportunity is provided for clients to change their deposits of both land-based and mobile phones into shares.
Ali Rahmani said, “The TCI will convert deposits into the shares based on the request of clients.“ The clients’ deposits will be registered as funds that should be returned to the clients at anytime, he stated.
Since the deposits differ based on the year they were transferred to the company’s account it might be to the disadvantage of some clients.
Rahmani said that the process is the same as in other countries. “People will take shares according to the amount of deposit which affects TCI’s success and development.“
People did not have any profit from deposits remaining in TCI account and that’s why in new plan the deposits will be considered as funds assisting the company’s development and expansion.
“These deposits will become shares of the company and even if the company’s managers are changed, people can ask for profits.“ said Rahmani.
Following the implementation of Article 44, state companies will be privatized so people can become shareholders in those companies. The head of TCI had recently announced that details of clients have been gathered and the plan is not mandatory. Clients can decide whether to become shareholders or not. “They can decide to change their deposit to shares in the Stock Exchange or keep it only as deposits.“ Feyzi said.
Official TCI figures show that 130,000 billion rials remains in the company’s account, of which some 40,000 billion rials is deposits of clients. Feyzi said that the amount will be distributed as shares to 38 million clients irrespective of whether their deposit was for fixed or mobile lines.
Some clients left the amount of 10,000,000 rials as deposit in previous years but the sum has decreased to 3,500,000 rials in recent year. This has raised some objections among clients. Feyzi responded to this ambiguity and said, “Basically people with higher amount of deposit will pay lower tariffs than those with lower deposits. If we calculate the conversation charges without taking deposits into account, all clients had to pay 50 percent more for their phone conversations while they are paying less just because of their deposits.“
According to Feyzi clients can call at TCI offices and fill out a form for securing their deposits. Other clients’ deposits will be changed into shares and they will be entitled to the benefits.
Development of telecommunications in remote areas is funded by the profits from the clients’ deposits. So the more deposit they left, the more they helped in the expansion of the company. This makes some clients ask for an update of shares’ value. Earlier the TCI had announced that it will consider only one-third of the value for shares of clients.
Still there are a lot of ambiguities about the process of changing deposits into shares. In the meantime the Mobile Communications Company is asking its clients to express their agreement or disagreement with the plan. Clients have lots of unanswered questions about the plan and still they do not know whether the plan is to their benefit or not.

All tests on the mobile telephone handset will be conducted under the supervision of the Industries and Mines Ministry.

A top official at the Industries and Mines Ministry said on Wednesday that mass production in the second production line of mobile telephone handsets has begun in Shiraz, Fars province.
Director general of Electric and Metal Industries noted that production of mobile telephone handset, named GTX, was officially launched last week.
According to a press release faxed to Iran Daily, Alireza Nourpour asserted that all tests on the mobile telephone handset will be conducted under the supervision of the Industries and Mines Ministry.
“Iranian companies will have full access to technology transfer in software section,“ he added.
Commenting on most important advantages of domestic production of mobile phone handsets, Nourpour listed them as job creation, transfer of technical knowledge in advanced telecommunications industries, particularly software, and very suitable after sales service for customers.
“Since the main issue in production of cellular phones is tests by specialists conducted after production, such tests are not completely conducted for many brands of imported mobile phones,“ he added.
Nourpour contended that radiations tests are of prime importance for the safety of users and domestically-produced mobile handsets will not face such problem.
The first factory to manufacture mobile phone handsets opened in Hashtgerd, Tehran province, in March. It has more than 200 after sales service centers throughout the country.

A total of $1.6 billion was earned from the export of technical and engineering services in the year to March 2007, showing a 6-percent growth compared to $1.5 billion registered in the year before. Announcing this, director general of Export Promotion Department of Goods and Services at Iran’s Trade Development Organization told ISNA that industry, development and energy sectors recorded the largest share in technical and engineering services export in the year to March.
Mehrdad Jalalipour listed the share of technical and engineering services exports as follows: industry sector at $701 million, development sector at $501 million and electricity sector at $152 million.
Comparing the exports of technical and engineering services in 2005 and 2006, he pointed out that the figures of the two years shows a satisfactory growth. It is predicted that the figure will increase to $1.9 billion in the year to March 2008.
Referring to the share of export of technical and engineering services in the total global export, Jalalipour noted that the figures show that the total world export stood at $14,472 billion of which export of goods accounted for $11,062 billion and services sector for $2,710 billion, including $360 billion in technical and engineering services. “Iran’s Trade Development Organization plans to increase export in this sector to $3 billion,“ he added.

A 30-member Iranian delegation will visit China to study the economic model of that country and if this is useful, it can be implemented in Iran.
The Wall Street Journal wrote that Iranian officials are trying to use China’s economic development model in Iran, reported Fars.
Iranian economists are looking into how they can reduce the government’s role in the economy without harming the country’s political affairs.
It further said that a delegation of Iranian lawmakers visited Shanghai and Shenzhen late last Iranian year (ended March 20). Shanghai and Shenzhen are symbols of China’s new economic policies.
Head of Majlis Economic Commission and a delegation member, Adel Azar, said that he was shocked to witness China’s high dynamism and Iran’s passiveness in the economic field.
He noted that this is while Chinese population is 18 times more than that of Iran and the latter has abundant oil and gas resources.
Referring to issues discussed in both countries in early 1980s for promoting privatization, Azar contended that although the discussions on privatization started concurrently in both countries, Iran is lagging behind.
Wall Street Journal further wrote that it seems that due to mounting pressures on Iran’s nuclear activities in recent months, Iranian officials have become more determined to implement privatization policies.
Although Iran and China have different governing systems, both systems are the results of revolution, the paper noted.
Economists argue that Iran’s dependence in oil revenues is one of its weaknesses in achieving economic breakthroughs, it added. The paper further wrote that they do not consider Iran’s economic system an Islamic, or a capitalist or even a communist system, but an economic system that is based on oil revenues.

Export of agricultural products fetched $2 billion last year.

Mohammad Reza Eskandari, agriculture jihad minister, said on Thursday that export of agricultural products is projected to exceed $2.5 billion in the year to March.
Speaking in a ceremony to introduce the new head of Kermanshah Agriculture Jihad Department, he noted that export of agricultural products fetched $2 billion last year, IRNA reported.
“Since investment growth in the agriculture sector has become two-digit and it was 10.1 percent for last year, it is predicted that the growth rate will reach 13.5 percent in the current year,“ he added.
The minister pointed out that the country is currently facing water crisis and the government is trying to increase the productivity coefficient of water by implementing pressurized and drip irrigation systems.
“A total of 500,000 hectares of agricultural lands are currently under irrigation system of which more than 150,000 hectares have been covered by irrigation system for the past two years,“ Eskandari noted.
He asserted that the index of water usage in agriculture sector is more than 40 percent and this can be increased to 85 percent by implementing pressurized and drip irrigation systems.
“Agriculture Bank paid 66,000 billion rials in loans to farmers last year (ended March 20). It is expected that the figure will be increased to 100,000 billion rials in the current year,“ said Eskandari.
He pointed out that the goal of the Ninth Government is to serve the farmers and Agriculture Bank should put fine waivers and loans on its agenda.
“If the Agriculture Bank does not fulfill its duties in the current Iranian year, it will be confronted. The government has approved that for investment growth in agriculture sector 25 percent of the facilities of all banks should be granted to the agriculture sector,“ the minister concluded.

Iran’s economic growth has reached the point where it can materialize its potential as a regional commercial hub.
Iran’s Ambassador to Saudi Arabia Seyyed Mohammad Hosseini made the comment while addressing a group of businessmen and managers at the Seventh Exhibition of Iran’s Economic and Industrial Capabilities in Riyadh. He added that Iran has not only attained self-sufficiency in many industrial areas, but is now ready to export a large number of products, PressTV reported.
“Iranian goods are gaining popularity and many contracts have been signed. Informed sources have said that the Seventh Exhibition was one of the best in the past five years, both in the number of major companies taking part and the quality of the products,“ he continued.
Hosseini pointed to the increasing volume of trade with Saudi Arabia and said the trend can continue, provided that the two countries expand economic and political relations.
Trade between Iran and Saudi Arabia in 2006 rose to $800 million, $300 million more than the previous year.
The ambassador noted that economic and business relations can pave the way for stronger and deeper ties in other fields.
The five-day exhibition is being held in an area of 4,000 square meters, and some 70 Iranian companies from the industry, service and production sectors are represented.

Managing director of Iran Carpet Company has said that based on global statistics, Iran exported $406 million worth of rugs and $17 million worth of other carpet products in 2005.
Speaking at a press conference, Jalaleddin Bassam added that world carpet exports stood at more than one billion dollars in 2001 and this figure declined slightly in 2005.
According to ISNA, he observed that countries like India and Pakistan tended to produce cheap carpets by copying Iranian designs, so it is likely that Iran will lose its standing in the world carpet market.
“Currently our country ranks first in global carpet market with a share of 43 percent followed by Pakistan and India with 25.8 and 24.3 percents respectively.“
Iran carpet exports decreased by 12.4 percent during the year to March 2007 as sales in the domestic market increased by 20 percent during the said period compared to figures for the previous year.
Asked about Iran’s membership in World Handmade Carpet Organization, Bassam explained that the organization was set up by private sectors in India and Pakistan and Iran’s private sector should be present in the organization, but there is no consensus on this among members of Iran Carpet Exporters Union.
The new Hong Kong-based body--the World Handmade Carpet Organization--has been created with China, India and Pakistan as members to promote the sale of hand-woven rugs, but Iran is yet to join.
If Iran joins the organization, it should undertake the programs approved by the panel, even though they may be against its interests, he noted.
However, he said because Iran stands first in global carpet market, the presence of its private sector in the organization will prevent copying of carpet designs thus creating a cooperative and competitive atmosphere.