Economy, Business And Markets

Fresh Call for a Business-Friendly Setting

Fresh Call for a Business-Friendly Setting Fresh Call for a Business-Friendly Setting

Implementation of the nuclear accord with the six world powers has removed a big hurdle in the way of economic development, Said Laylaz, a senior economist says.

However, he warned that the major remaining issue is managing the economy and improving the business landscape now that the sanctions have been consigned to history.

“The major issue is whether those in charge can (efficiently) manage the economy and the general business atmosphere in the post-sanctions era,” quoted him as saying.

Foreign Minister Mohammad Javad Zarif and the EU’s foreign policy chief Federica Mogherini announced on January 16 that all the sanctions imposed on Iran because of its nuclear program have been lifted.

The joint statement in front of the world press in the Austrian capital came after the UN atomic agency verified that Iran had fulfilled all its commitments to curb parts of its nuclear program as required by the agreement signed in Vienna in July.

Leylaz referred to the parliamentary elections on February 26, saying a calm, tension-free vote would indicate that “politicians want stability for both the political and economic spectrums.”  While the mood for the Majis elections had been soured by large numbers of reformist candidates being barred by the powerful Guardian Council, Siyamak Rahpeyk, spokesman for the Central Elections Monitoring Board, a body under the supervision of Guardians Council, said on Saturday that an additional 1,500 hopefuls have been cleared to contest the race along with 4,800 contenders approved earlier.

“The lifting of sanctions will improve the country’s import and export volume and will result in lower import costs while increasing the price of our exports.”  

The economy will grow by 3-5% in the next fiscal year (begins March 20), Leylaz said. “It will be the highest in seven years, and more importantly the growth rate will stay in that territory for a few years.”

The International Monetary Fund and the World Bank have put Iran’s growth rate for next year at between 3% - 8%.

Masoud Nili, President Hassan Rouhani’s economic advisor, however has pointed to some errors that he believes should be avoided as the economy gets ready to make its mark.

The risk of becoming an import-based economy, danger of economic monopolies, possibility of the private sector languishing on the periphery, borrowing in the foreign money markets and a possible crisis in the domestic forex market are the risks that must be avoided by the government come what may, he said.