Economy, Domestic Economy
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Non-Oil Exports Up 18%

Non-Oil Exports Up 18% Non-Oil Exports Up 18%

Non-oil export recorded 18 percent growth during the first nine months of current fiscal year (March 21st 2014- March 20th 2015) compared to the same period last year, according to Head of Trade Promotion Organization Valiollah Afkhami Raad.

The total amount of non-oil exports over the nine-month period was 35.2 billion dollars that shows 5 percent growth on weight. The top five destinations of exported goods were: China, Iraq, the United Arab Emirates, Afghanistan and India.

 

Afkhami Raad also added that the value of total imported products to the country, over the same period, was 38.4 billion dollars, which shows a 31 percent growth in weight and 15 percent growth in value. Based on this report, the country's trade balance of non-oil export was 3.2 billion dollars.

The government is the largest exporter (just like any other economic activity in which state-owned enterprises are larger than private companies) and should leave business opportunities to private companies, Afkhami Raad added. He also said: "Although we have experienced 18 percent growth compared to last year, the overall view is not ideal. Thus, it is expected of the government to support exporting companies and facilitate the export-related regulations in favor of export growth."

The head of the Trade Promotion Organization said: "We support the Foreign Minister's detente policy in international relations and wish them to come up with a diplomatic solution over the nuclear issue. Currently, there are limited shipment and service options for exporting companies. The most important thing we should provide for exporters is cost effective trading services."

Analysts believe that the government is able to increase non-oil exports by easing some of the regulations and providing standard financial and shipping services. Another obstacle on the way of increasing the country's non-oil exports is that there are delayed payments by the government on export incentives (the incentives the government is obliged to pay in order to encourage companies to do export activities).

Afkhami Raad also suggested that the government may sign mutual agreements with destination countries to facilitate trading in local currencies. Experts believe that trading in local currencies may lessen the exporter's financial problems caused by international sanctions. He also said that joining the World Trade Organization (WTO) is inevitable and the government should revise related regulations to facilitate joining the international organization.

 

Financialtribune.com