TEHRAN- Iran welcomes those suggested plans of foreign companies that help promotion of production and exports in the Islamic Republic, Iranian Finance and Economic Affairs Minister Ali Tayyebnia said in a press conference on Saturday.

This is the main policy of Iranian government in the post-sanctions time, the minister added.

“Many large companies of the world are willing to enter the Iranian market. In my recent trip to Japan, about 400 large Japanese firms announced their eagerness for presence in the market of Iran”, Tayyebnia highlighted.

He mentioned educated and expert manpower, low price of energy, important geographical location as well as safety and security as some factors which make Iran an attractive investment destination for the foreign companies, as many trade delegations have visited Iran following removal of the sanctions.

The minister also noted that Iran expects to attract $45 billion of investment per annum, of which $15 billion would be foreign direct investment (FDI).

 

*** ‘Improving business condition, a major approach’

Elsewhere in his remarks, Tayyebnia said improving business environment in the country is one of the main economic approaches of the government.

He said, “Majlis [the Iranian parliament] enacted two bills in this due. The bills were notified to the related organizations and an office was established in the ministry to supervise enforcing of the bills.”  

According to the World Bank's Doing Business 2016 report, Iran has advanced 12 places in the ease of Doing Business ranking, forecasted to reach 118th place in 2016 from 130th in 2015.

The ease of Doing Business report of the World Bank is based on 10 factors, such as conditions for starting a business, protecting investors, paying taxes, and trading across borders.  

Iran ranked 130th in the World Bank’s ranking of 189 countries in 2015, an improvement over its rank of 132nd in 2014 and 152nd in 2013. 

According to the World Bank’s report, starting a business in Iran has been made easier with simplified preregistration and registration formalities (publication, notarization, inspection, other requirements). 

 

*** ‘Sanctions removal provides many opportunities for economic growth’

The minister went on to say that removal of the West-led sanctions against Iran’s economy provides many opportunities for the country to achieve sustainable economic growth.

He said the country’s budget plan for the next Iranian calendar year (which will start on March 20, 2016) has envisaged five percent economic growth.

In its January 2016 Global Economic Prospects report with the theme of Spillovers amid Weak Growth, the World Bank forecasted Iran’s gross domestic product (GDP) will grow by 5.8 percent in 2016 and by 6.7 percent in 2017. 

The report said Iran’s economy expanded by 1.9 percent in 2015.

Tayyebnia expressed hope that lifting of sanctions will lay the ground for even a higher economic growth.

 

*** ‘Economic prosperity, a main objective of government’

Tayyebnia further pointed to achieving economic prosperity as a main objective of Iranian government, saying that curbing the inflation is the main factor to achieve economic growth.

The minister said that the country’s budget plan for the next calendar year has envisaged an inflation rate of 11.3 percent.

Curbing inflation was one of the major promises by Iranian President Hassan Rouhani during his presidential campaign. Under the previous administration, inflation skyrocketed to cross 44%.

  The Central Bank of Iran (CBI) aims to lower inflation to single digits by 2017.  

In October 2015, Iran unveiled a new economic stimulus plan to promote the economic growth and curb the inflation rate in the country. The stimulus plan will remain in effect for a time span of six months after coming into effect.  

 

*** ‘Comprehensive plan for sustainable finance providing’

“We have prepared a comprehensive plan to achieve sustainable finance providing for the government,” Tayyebnia stated.

“To achieve sustainability in this regard, our duty is to reduce the government’s reliance on the oil revenues”, the official noted.

 

*** ‘41% tax income growth in past year’

The finance minister went on to say that Iran’s tax income rose 41 percent in the past calendar year (March 2014-March 2015) in line with reducing the country’s dependence on oil income.

Iranian government is determined to reduce dependence on oil through improving the tax system and the boosting of economic activities.

 

*** ‘Iran should be hub of airlines in region’

Regarding its geographical location, Iran should become a hub of airlines in the region, Tayyebnia asserted.

This objective should be followed up seriously now that the sanctions are being removed against the country, the minister added.