The idea to drop three zeros from the national currency was only a proposal.

Central Bank of Iran has set up a working group to study lopping off three zeros from the national currency, said member of Majlis Money and Credit Commission, Gholamreza Mesbahi-Moqaddam.
The remark by the lawmaker came as Minister of Economic Affairs and Finance earlier said that the idea to drop three zeros from the national currency was only a proposal. Davoud Danesh-Jafari explained that the measure had good results in Turkey, which used to have inflation rate of over 100 percent for many years and its national currency had weakened.
Governor of Central Bank of Iran said in September that the plan to lop off three zeros from the national currency the rial was just a ’proposal’, Tahmasb Mazaheri warned that if implemented without expert studies, it would harm the national economy.
“Knocking-off three zeros from the national currency can be a useful mechanism but preparations should be made for its implementation and the reasons for its execution should be explained to the public.“
Speaking to MNA, he further referred to the new budgeting procedure for the year to March 2009 which he said is void of non-budget notes encountered in earlier budget bills.
The lawmaker underlined that the centralized budget would delay the allocation process, adding if the new budget is not centralized, it would be better since currently the Majlis decides on the framework of the budget and how it is used. Therefore, he said, there is no way the provincial governor general offices can incorporate its preferences in budget bills.
Mesbahi-Moqaddam expressed satisfaction that withdrawal of money from the Oil Stabilization Fund in the current fiscal year (to end March 2008) has been less than the amount taken out the year before.
He recalled that about $11 billion were taken out of the fund by the government in the year to March 2007 creating numerous problems.
Oil Stabilization Fund saves surplus oil revenues, whereas, the rial reserve fund accumulates surplus tax revenues and savings by state organizations and companies.

Prominent lawmaker Mohammad Khoshchehreh has criticized the government for its weak performance in job creation, housing, health and education sectors.
Poor involvement of the government in these fields has contributed to its inefficiency, the outspoken economist stated.
Contrary to the developed countries, the government has performed poorly in these much-needed sectors and is heavily involved in sectors in which its presence is not essential, the MP, who represents Tehran in the Majlis, said at a gathering in Imam Mohammad Baqer University in Sari, northern Mazandaran province.
He called on the government and the parliament to team up to find and solve public problem.
Creation of jobs and providing housing are the two main dilemmas the people are grappling with, added Khoshchehreh as quoted by Fars news agency.
“Today, house rent devours 70 percent of the revenues of middle-income households in big cities like Tehran,“ said the lawmaker, a member of the Majlis Economy Commission, adding that this is while the government has a less than three-percent role in providing the public with residential units.
He noted that the ’windfall’ oil revenues can bring economic and social prosperity if they ate spent properly.
“I, an ardent opponent of withdrawals from the Oil Stabilization Fund (OSF), support spending OSF money on creating jobs, providing houses and developing the public transport fleet.“
He earlier noted that excessive injection of money into the economy; pressure resulting from rising expenses and psychological factors are responsible for the runaway inflation.
Khoshchehreh criticized parliamentarians for authorizing the withdrawal of OSF deposits.
“This is the failure of the Majlis which readily agrees to every request for withdrawal from the OSF and injecting it into the market.“
Basic needs such as housing, employment, food security, healthcare should be met in a way to ensure justice--an idea which has been followed by the incumbent government, he stated.
The Majlis deputy further criticized the quality of the education system, saying, “The performance of the Education Ministry is not good and I do not give high score to the higher education system.“
Commenting on brain drain, Khoshchehreh rejected that the country is facing brain drain. Iranian intellectuals leave the country to improve their knowledge and return home after completing education, he elaborated.

The seminar aims to introduce new opportunities in Iran's telecom sector.

After holding two conferences ’Mobile New Services, Trends and Opportunities’ and ’Wireless Broadband Technologies’ in the current year, Teyf Scientific-Analytic Group plans to organize an ’International Conference on Investment Opportunities in Iran’s Telecom Sector’ in January 2008.
The conference will be attended by state mangers, policy makers, local and foreign investors as well as major players in Iran’s telecommunication sector. Teyf will provide an environment for identifying various investment capacities, opportunities and challenges in Iran’s telecommunication market, according to a fax sent to Iran Daily by Teyf Group.
The seminar aims to introduce new opportunities in Iran’s telecom sector in an effort to help attract domestic and foreign investments. It also plans to familiarize investors with Iran’s telecommunication market and the available opportunities.
In addition, it wants to study the capabilities and challenges for Iran’s telecom investors.
The one-day gathering is to be held in Khajeh Nasir Hall of Islamic Republic of Iran Broadcasting’s International Conference Center in Tehran.
Three focal points of the gathering are: the third cell phone operator and new investment opportunities in Iran’s mobile market; promotion of wireless broadband communication using WiMax Technology and investment in the field; privatizing the telecom companies which is a an opportunity for the entry of new capital to the field.
Moreover, Mobile TV, providing mobile contents, Taliya and investment in rendering prepaid mobile services would be discussed in the seminar. Those interested can refer to /http://www.teyf.ir/icioit to obtain the latest information about the seminar or be updated on registration.

A charter has been signed between the Commerce Ministry and Iran’s Chamber of Commerce, Industries and Mines (ICCIM) on implementing Article 44 of the Constitution which envisages large scale privatization of state-run companies.
According to MNA, the charter, which includes 31 articles, aims at developing and improving national economy and providing suitable environment for materializing the general policies of Article 44 and Vision 2025, a plan which formulates long-term national economic and social targets.
Base on the charter , the ICCIM and Commerce Ministry will cooperate in various fields including compiling strategies for commercial development of the country, specifying the role and shares of private and public sector in global markets, identifying target markets and establishing commercial centers as well as setting up the secretariats of commercial centers in ICCIM.
Meanwhile, on the sideline of the signing ceremony, Commerce Minister Masoud Mir Kazemi said that price hikes in the global market is the main reason for increasing prices of consumer goods in Iran, IRIB reported.
He noted that the higher costs of raw materials have caused the price of cooking oil to go up, adding, “We managed to control the price in the local market.“
The minister stated that global prices of some commodities including wheat, barley, corn recorded sharp increases with some going up even by 200 percent. “We should accept the price or allocate subsidies for imports“, he noted.
Mir Kazemi noted that mass construction has led to a significant increase in cement demand.
He said that since domestic cement demand exceeds production, export of this commodity is prohibited.
The minister noted that shortage in the domestic market can be met by importing cement with private sector cooperation.
Referring to rice import, he said that the per capita rice consumption is 43 kg and the country needs more than two million tons of rice per annum.
He added that domestic demand can be met through imports. Although the global price of rice has increased considerably, the commodity is imported with 150 percent tariff, he complained.
Referring to irregular imports of a number of consumer goods last year, he said that stockpiling major consumer goods is among the main strategies of the government. He noted that these commodities would gradually be released in the market.

Iran’s prediction came true as OPEC decided to keep oil supplies unchanged at a key ministerial meeting Wednesday in Abu Dhabi, UAE.
Key OPEC members supported the move, including Venezuela and Iran, which said a hike risked igniting further heavy losses for oil prices.
“Market is saturated with oil and I hope the meeting ends with the decision to keep output steady,“ Iran’s Oil Minister Gholamhossein Nozari told PIN ahead of the 146th meeting of Organization of Petroleum Exporting Countries in the capital of the United Arab Emirates.
Nozari, who headed the OPEC’s Ministerial Monitoring Committee Wednesday, said ahead of the meeting that the panel found no need to boost output.
The committee studied the OPEC oil market, concluding that the market was adequately supplied with oil and there was no need for the group to raise production, he added.
“Given prices and conditions of market, we concluded that OPEC’s decision on keeping output ceiling steady will have no impact on prices,“ Nozari said.
The Ministerial Monitoring Committee comprises representatives from Iran, Nigeria, Kuwait, and the OPEC Secretariat.
OPEC agreed to keep oil supplies unchanged, Nigerian Oil Minister Odein Ajumogobia said, rebuffing consumer country calls for more crude to rein in prices now near $90 a barrel.
The Organization of Petroleum Exporting Countries also agreed to meet again at the end of January to review its decision ahead of a regular March gathering, Ajumogobia told Reuters.
Ahead of the meeting, ministers said they saw no reason to raise output since they were already pumping enough crude to meet winter fuel demand.
“We’ve seen nothing yet to justify an increase or a decrease,“ said powerful Saudi Oil Minister Ali Al-Naimi.

Training courses will be held for 240,000 construction workers to help increase their skills.

Deputy minister of housing and urban development has announced the government’s determination to promote quality and increase safety of buildings.
The government plans to pay 30 percent of costs for supervising constructions in land provided under the 99-year lease, Manouchehr Khajeh-Dalouei was quoted by Iran Daily’s Sadeq Dehqan as saying.
He added that the measure has been taken to improve construction on these lands as well as assist low-income families.
The official further noted that the ministry has signed a memorandum of understanding with Labor Ministry to increase skills of building workers. Some 240,000 workers have been identified for training in five fields.
Turning to the national building regulations, Khajeh-Dalouei stated that a bylaw has been drafted to oblige builders to use standard construction materials by March.
The regulations also include requirements on earth-moving operations as well as gas distribution network in buildings to prevent gas-related incidents.
Engineering Registration Organization recently approved plans to set up companies to supervise and control constructions, he said, explaining that these companies would oversee performance of municipalities, provincial engineering registration departments and their inspectors.
Khajeh-Dalouei said that a two-day conference on national building regulations will open today in Shiraz.

A new mega oil deal is now in the making in Iran. This time, Indian’s ONGC Videsh (OVL), the overseas investment arm of India’s state-run Oil and Natural Gas Corp (ONGC) and the Hinduja Group are in talks to seal a partnership with Switzerland-registered Naftiran Intertrade Company (NICO), a subsidiary of the National Iranian Oil Company (NIOC).
Notwithstanding US pressure to reduce trade with Iran, India is pressing ahead with its economic interest with the Islamic state.
The OVL-Hinduja group joint venture (JV) proposes to pick up 50 percent stake in one of the world’s largest gas fields and onshore oil block--South Pars and Azadegan, India’s Economic Times reported.
A memorandum of understanding (MoU) for the deal has already been inked between NICO and the Hinduja Group. OVL is set to take a final decision on the proposed joint venture at its board meeting slated for Wednesday.
Azadegan oil field is one of the biggest oil fields to be discovered in the world in the past 30 years. The field is located 80 km west of Ahvaz and its reserves have been estimated at 33 billion barrels. The South Pars gas field contains about 50 percent of Iran’s gas reserves and is regarded as the largest offshore gas field in the world.
India’s Petroleum Ministry has already given in its consent to OVL to go ahead with the collaboration. The Finance Ministry’s views on the proposal are also likely to be tabled at the OVL board meeting.
The proposed JV is likely entail a majority stake for OVL in the venture with a 51-percent stake and 49 percent by the Hinduja Group.
India, which has oft reiterated its bilateral energy links with Iran given the geographical proximity of the energy rich country, has however, till now failed to formalize any major deal. OVL, however, has made a beginning with the Farsi oil block where it has also made a discovery.
The Hindujas are understood to have signed the MoU with NICO in August this year and are time bound to translate this into a heads of agreement if the deal is to go through.
Unlike most gas contracts in Iran, which does not allow for direct oil equity stakes, the MoU allows the Indian oil companies to export its share of oil and gas to India.