Economy, Domestic Economy

Call for Development of Knowledge-Based Firms

Call for Development  of Knowledge-Based Firms
Call for Development  of Knowledge-Based Firms

First Vice President Es’haq Jahangiri called for the development of knowledge-based companies, noting that it could help reduce the country’s dependence on oil revenues, and create job opportunities for the youth.

“In a move aimed at financially supporting the knowledge-based businesses, the National Development Fund of Iran (NDFI) recently decided to offer low-interest loans to knowledge-based companies active in areas on industry and agriculture,” IRNA quoted Jahangiri as saying, addressing the 3rd National Laboratory Equipment and Chemicals Exhibition in Tehran on Saturday.

He also referred to the establishment of the ‘Technology and Innovation Fund’ two years ago, saying the fund which began with 250 billion rials ($8.9 million based on official exchange rate) in 2013, currently has 150 trillion rials ($535.7 million) at its disposal for investment in development of knowledge-based companies.

The vice president urged the knowledge-based companies to expand their businesses to offer products and services in the global markets. “No business can secure its future as long as it relies only on domestic markets.”

  Economic Growth: Major Objective

Jahangiri underlined economic growth as a major objective pursued by the administration in the current Iranian year (started March 21).

“The government is determined to remove the existing hurdles to manufacturing and exports,” he added.

He further emphasized the need to boost exports, adding that unnecessary bureaucratic procedures should be eased to spur exports.

“Efforts should be made to increase the volume of exports from last year’s nearly $50 billion.”

He urged the Iranian businesspeople to seize the opportunities in neighboring countries’ markets, highlighting the untapped potential in these markets.

  Banking System

“Banks have suffered greatly in recent years with some 900 trillion rials ($32.1 billion) in non-performing loans,” Jahangiri added, noting that the government has devised policies to support the banks financially.

Referring to the unauthorized banks and financial institutions, Jahangir noted that such institutions tend to “impair the economy as they have access to substantial finance resources.”

His remark echoes those by other Iranian economic officials. Minister of economic affairs and finance, Ali Tayebnia, on Thursday warned that the high interest rates offered by unauthorized financial institutions hamper growth.