The controversial plan on monetization of state assets has been met with strong opposition these days. Let’s take a look at Iran’s industrial enterprises as the most productive part of the economy to see why they are operating in an unproductive structure and degrading by the day, while behind their competition in developing countries. Hossein Haqgou, an economic commentator, prefaced his article for Persian-language daily Ta’adol with this note. Below is a translation of the text.
According to a report by Industrial Management Institute, the economic enterprises in Iran registered sales worth 36,980 trillion rials in the last Iranian year (March 2021-22), i.e. 16% of the gross domestic product. Top 100 large companies accounted for 88.2% of sales and the remaining 400 companies accounted for as little as 12%. The large industrial enterprises on this list mainly rely on energy, minerals and basic resources. The performance of Iranian economic and industrial enterprises is insignificant compared with those in developed countries and even with those of the neighboring country, Turkey. According to the CEO of the Industrial Management Institute, export per capita of 500 Iranian companies is 43% of the exports of 500 Turkish companies. The sales of the first Turkish company are 1.6 times bigger than the sales of the first Iranian company. Of course you cannot expect anything else.
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