Domestic Economy

Private Sector Urged to Help Boost Non-Oil Exports to Neighbors

Private Sector Urged to Help  Boost Non-Oil Exports to Neighbors
Private Sector Urged to Help  Boost Non-Oil Exports to Neighbors

First Vice-President Es’haq Jahangiri has called on the private sector to vigorously engage in export of engineering and technical services to the neighboring countries and beyond, saying boosting non-oil exports is a prime target that is to be pursued by the administration in the next Iranian year (starting March 21).

Speaking in a Tuesday session of the Supreme Council of Non-Oil Exports, Jahangiri emphasized the necessity to stimulate the export of non-oil products and said: “Next year we are going to witness a considerable increase in non-oil exports as well as a positive trade balance.”        

Emphasizing the importance of neighboring countries especially Iraq with regards to non-oil exports, he said: “Politically and economically, Iraq is of outmost significance to Iran. Therefore, Iran’s share in Iraq’s import of engineering and technical services should not be less than other countries.”

He urged the minister of industries, mine and trade and the minister of economy and financial affairs to prepare a plan for the revival of export incentives, which have been put on hold in recent years.

He also called for a precise assessment of foreign currency revenues earned through non-oil exports.

 “Foreign currency revenues earned from transit activities and foreign airlines using Iran’s air space have to be calculated precisely.” Jahangiri said.

A number of Iranian government officials including the minister of industry, mine, and trade, head of CBI, minister of communication and information technology, minister of cooperatives, labor and social welfare took part in the latest session of  the Supreme Council of Non-Oil Exports, which was held in Tehran on Tuesday.

The session was concluded with the participants discussing the difficulties on the way of bilateral trade with the neighboring Iraq, including banking problems and lack of unified customs management along the borders.   

According to the latest report released by the Islamic Republic of Iran Customs Administration (IRICA), the value of Iran’s non-oil exports significantly rose over the past Iranian month of Dey (ending January 20th) with the trade balance standing in positive territory.

Iran exported 7.439 billion dollars worth of commodities over the period, and the trade balance stood at 2.2 billion dollars, according to IRICA’s report.

Meanwhile, non-oil exports earned $42,584 million during the ten months of the current Iranian year (to end March 20), compared with the similar period’s figure of $43.6 billion dollars, indicating that Iran’s trade balance was $1,093 million negative.

According to the report, Iran’s non-oil exports increased nearly 24 percent in the first ten months of the current Iranian year compared with the similar period last year.

Based on the government’s projections for the next fiscal year (starting March 21), state revenues from non-oil exports should reach $61 billion. To achieve the goal, the government is trying to implement various plans, including a tax-exemption program for exporters.