TEHRAN- Iranian deputy industry, mining, and trade minister announced that 328 big production units are prepared for presence in the country’s stock market, IRIB reported.

Saeed Zarandi said that financing these units’ projects and activities through the capital market is a unique opportunity for them.

The current Iranian calendar year (began on March 20) is named the year of “Surge in Production”, indicating that many endeavors should be made in all sectors for realizing a jump in the country’s production status.

Materializing this motto requires strong financial support for the production units, and directing the liquidity toward the production activities.

It is obvious that the capital market can play a significant role in the realization of this objective.

The country’s capital market enjoys high potential to support domestic production and as its capacity is being more and more expanded, it should be noted that it’s now the best place for attracting the liquidity to the production.

The need for securing the required funds for the production activities on one side and the current promising status of the capital market on the other side highlights how much this market can pave the way for realizing the slogan of “Surge in Production”.

The capital market can surge production by promoting the major elements of production, which are capital, workforce, and technology.

In an interview conducted by the Tehran Times on July 5, Bahram Shakouri, the chairman of Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA)’s Mines and Mining Industry’s Committee, said that the capital market is a chance for the mining sector to bloom.

Among the major issues that the mining sector is currently facing, financial problems and resource limitations are the most severe ones.

In this regard, the government has urged the Industry, Mining and Trade Ministry to take necessary measures for supporting such mines to get back on their feet and start operating again.

The main solution that has been offered for the mining sector is for mines to enter the capital market and offer their shares to raise funds for developing projects and resuming their operations.

While the motto of “Surge in Production” defines a heavy responsibility for all sectors of the country, the capital market can play a key part in the materialization of this motto, as it can provide financing in a rapid, low-cost, and transparent way.

And this role becomes more important when taking the sanctions into account.

Under the current condition, when the U.S. cruel sanctions on the Iranian economy have created many limitations for Iran’s industries and domestic production, the capital market can act effectively in supplying the production sector with required funds, in a way faster and at a lower cost compared to receiving the banking facilities.

While through providing rapid and low-cost financing in a ground of transparency, the capital market directs the liquidity into the production, it somehow prevents from the attraction of liquidity by the unproductive markets of housing, gold, and foreign currency, and in this way, it protects the national economy against the inflow of liquidity which makes high inflation.

In fact, the capital market supports the industries and domestic production on one side, and strengthens the people’s contribution to the national economic growth on the other side, while the people also make a profit out of their investments.

MA/MA