Domestic Economy

Iran Least Dependent on Foreign Industries Among Regional Economies

Iran Least Dependent on Foreign  Industries Among Regional Economies  Iran Least Dependent on Foreign  Industries Among Regional Economies

Deputy Minister of Industry, Mine and Trade, Mojtaba Khosrowtaj, said on Thursday that compared to other countries in the region, Iran’s economy is the least dependent on foreign industries, hailing the economic achievements since the victory of the Islamic Revolution in 1979.

“Between $7-10 billion worth of industrial products are exported annually to other countries,” he said during the inauguration ceremony of three industrial towns in the city of Nazarabad, noting that the figure reflects the high quality of Iranian products in the global market.

“The value of Iran’s non-oil exports including agricultural and industrial products reached $35 billion during the first nine months of the current  Iranian calendar year (March 21-December 21, 2014),” he said, describing it as a “remarkable achievement thanks to overall efforts in the post-revolution era.”

Iran is looking at new sources of revenues through non-oil exports that can replace traditional oil revenues – a source of income that has proved to be highly susceptible to global volatilities and politics.

Based on government 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 after implementing various plans, including but not limited to providing export incentives for exporters.

Khosrowtaj said Iran’s economy is unlikely to be hurt by tumbling oil prices as the country is able to successfully overcome any crisis relying on what he described as “Islamic lifestyle”.

“Our enemies think they can paralyze Iran’s economy by oil prices and sanctions,” he noted, dismissing such assumptions as baseless since “the government seeks to stimulate the economy through its supportive plans.”

He said the policies of ‘resistance economy’ introduced by Leader of Iran’s Islamic Revolution Ayatollah Seyyed Ali Khamenei, is a prime target of the current administration. “Many economic experts acknowledge that the Islamic Republic has taken significant steps towards economic development to the extent where it can easily meet its domestic needs.”  

Leader of the Islamic Revolution, Ayatollah Seyyed Ali Khamenei issued a decree on February 19, 2013, outlining the general policies of the resistance economy. The decree encourages increased exports of electricity, gas, petrochemicals, and oil byproducts instead of crude oil and other raw materials, expansion of production and exportation of knowledge-based products, increase in domestic production of strategic goods, and development of markets in neighboring countries.

The deputy minister said curbing reliance on oil revenues can be made possible through boosting the quality of domestic products.

  Alternatives to Offset Oil Revenue Loss

In relevant remarks made on Wednesday, President Hassan Rouhani highlighted the need for new alternatives to offset oil revenue losses, noting that his administration is set to develop foreign policy in a way that it can lead to a better condition in the next fiscal year (starting March 21).

“Iran should invest more in tourism, arts and new technologies to be able to secure the economy in the long run,” Rouhani was quoted by IRNA as saying, addressing a gathering of business entrepreneurs in the central province of Isfahan.

He further noted that his cabinet has managed to lower inflation from its peak of 40 percent to around 16 percent in recent months.

A recent report released by the Central Bank of Iran shows the economy grew by 4.6 percent in the first quarter of the current Iranian calendar year, ending two consecutive years of recession and negative growth.