Economy, Domestic Economy
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Non-Oil Exports Up 18%

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

Iran’s non-oil exports increased nearly 18 percent in the first nine months of the current Iranian year (to end March 20), compared with the similar period last year, head of Iran’s Trade Promotion Organization (TPO) Valiollah Afkhamirad said on Sunday.

“The value of non-oil exports reached $35.2 billion by the end of the nine-month period, while non-oil imports reached $38.4 billion, recording a trade deficit of nearly 3.2%,” He was quoted by IRNA as saying.

The main export destinations for Iranian commodities over the period were, in descending order, China, Iraq, and the UAE.

“With import of nearly $6.6 billion worth of different Iranian commodities, China has been Iran's major trade partner, accounting for 26 percent of Iran's exports,” Afkhamirad said.

According to the official, Iraq has been the second major export destination for Iranian commodities with nearly $4.5 billion worth of goods exported to the country over the nine-month period.  The UAE was the third major destination for Iranian commodities with nearly $2.7 billion worth of imports from Iran. Afghanistan, Uzbekistan, India, Hong Kong and Azerbaijan are among the other major destinations for Iranian exports.  

Meanwhile, major products imported by Iran over the period included wheat, vehicles, rice and soybean, which were mainly imported from the UAE.

The government is trying to generate new sources of revenue in a bid to reduce its long-standing reliance on oil revenues. The move is in line with a new economic policy aimed at lessening the impact of EU and US-led sanctions against Tehran over its nuclear energy program – particularly those affecting the oil industry and the banking system.

The move is also aimed at offsetting the possible impacts of falling oil prices on Iran's economy which is heavily reliant on revenues generated from oil sales in international markets.

“The oil price fall has compelled TPO to give priority to non-oil exports,” Afkhamirad said.

According to the government’s projections for the next fiscal year (starting on March 21), state revenues from non-oil exports should reach $61 billion. To achieve the goal, the government is trying to implement various plans, including a tax-exemption program for exporters, in an attempt to stimulate exporting activities.

 

The Supreme Council of Development of non-oil exports recently submitted a proposal to the government, asking it to provide exporters and all those engaged in economic activities with special banking loans. If ratified, the move will significantly boost Iran’s non-oil exports to the international market.

 

Financialtribune.com