Economy, Domestic Economy

Oversized Gov’t Bane of Economy

Oversized Gov’t Bane of EconomyOversized Gov’t Bane of Economy

Iran’s main economic challenge is its oversized government.

Economy Minister Ali Tayyebnia made the statement at a forum dubbed “JCPOA Implementation: A New Chapter in Iran’s Economy” in Tehran on Tuesday.

The minister noted that the government needs 7,000 billion rials (approx. $200 million) and foreign resources worth $90 billion to reach an annual 8% economic growth, as per the objectives of the sixth five-year development plan (2016-21), IRNA reported.

“To attract private sector investment and ease the influx of foreign capital, we need to have peace and stability, as well as a favorable business environment. Transfer of state entities to people and little government intervention are also vital, if we aim to encourage new investment,” he said.  

On the improvement of the business environment and a revision over financial market laws, Tayyebnia said, “We are not after creation of new laws; rather we are trying to eliminate cumbersome rules and regulations.”

His comments come as Hassan Pirmoazzen, treasurer of Iran Chamber of Commerce, Industries, Mines and Agriculture, said the private sector accounts for as little as 20% of Iran’s economy.