Ministry of Economy uses diplomacy to support economic goalsMonday, Sep 04, 2017The Minister of Economic Affairs and Finance of Iran outlined the plans and prospects of the ministry in a conversation with the government news agency.
(SHADA: TEHRAN) -- The government has achieved great success by ruling the rationality of the policymaking process and targeting national interests both in the nuclear negotiations and in reforming short-term economic policies to save the country from the crisis of the recession, said Massoud Karbasian, Minister of Economic Affairs and Finance.
In 1395 (March 2013-14), the Iranian economy succeeded in stabilizing single-digit inflation after 26 years, and statistics show that economic growth was about 8 percent last year, he added.
At the start of the 11th government, economic markets faced severe volatility, causing uncertainty in the overall investment environment. Point-to-point inflation in 1392 (March 2013-14) was over 45% and the average annual inflation rate in that year was more than 40%. The foreign exchange market also experienced severe fluctuations. The average free market exchange rate in 1391 (March 2012-13) was 92% higher than in the previous year, the Minister noted.
Fortunately, in the Iranian economy, there are high level documents that outline our goal and direction; the Resistance Economy and the 1404 Vision Plan accurately set the needs of the Iranian economy. In addition, Article 44 of the Constitution also depicts the behavioral methods and, in fact, the ruling views of the Iranian economy. According to these documents, it can be stated that the path towards the economy is clear and that it is necessary to act carefully in this direction, he stated.
There are priorities for the Iranian economy. Specifically, the resistance economy has identified an introspective and outward look. If the economy is to be internalized, Iran's economy should adhere to the issue of continuous improvement of the business environment and the practice of privatization, the Minister continued.
Paragraph 12 of the General Policies of the Resistance Economy addresses this issue. This section urges to use diplomacy to support economic goals, such as strengthening economic diplomacy by establishing coordination among the international executive agencies, pursuing and realizing the economic achievements predicted in JCPOA, global market opening for Iran's economy, active attraction of foreign investment, laying the groundwork for the presence and participation of foreign financial and credit institutions, laying the groundwork for issuing international currency bonds, and creating a framework for the participation and investment of overseas Iranians and foreign investors, Karbasian stated.
Paragraph 3 of the Resistance Economy has set some tasks for the Ministry of Economy in this regard. In the paragraph, "to focus on the growth of productivity in the economy by strengthening the factors of production," the Ministry of Economic Affairs and Finance will engage in some actions, including facilitating access to modern technology, paying attention to elites and scientists, increasing the quality of processes and products based on accepted international and domestic standards, increasing effective monitoring of government spending and budget, he said.
As to the problems of the laws and regulations Karbasian stated: One of the most important problems, especially in the field of business laws, is that they are not up-to-date, while new issues have always been added to the country's trade and economy; this reflects the importance of reviewing laws and regulations.
He went on to point out the steps taken to improve the business environment in the 11th government, saying: In addition to the efforts of the 11th government to restore stability and peace to the country's economy, which has led to an improvement in the public investment environment, the 11th government created a center for continuously improving business indicators by creating a business environment improvement office at the Ministry of Economic Affairs and Finance. The fruits of these efforts are to improve Iran's rating in the World Bank's Ease of Doing Business Index. The World Bank's annual reports show that Iran's business environment ranked 152 in 2013 and improved to 120 in 2016.
In Paragraph 19 of the Resistance Economy, economic transparency has been considered as one of the important approaches of the country's economic spheres, including the financial sector of the government. In recent years, some government departments, especially the Ministry of Economic Affairs and Finance and its affiliated organizations, have taken steps to clarify the government's treasury policy, the collection of tax, and customs revenues, Karbasian stated.
Iran's economy is in flourishing season. Today, we all need to move towards a dignified engagement with the world for investment growth and domestic production boom. The improvement of the business environment and the practice of the resistance economy along with the implementation of overall economic policies of the country can provide the basis for the realization of this idea, he stressed.