TEHRAN- A member of the Iran Chamber of Commerce, Industries, Mines, and Agriculture (ICCIMA), stating that the most important priority of Iran’s economy in the post-war era is increasing stability and predictability in the economic environment, said that this can pave the way for the return of investment, the boom in production, and the development of exports.
Abbas Argon, in an interview with IRNA’s, regarding the country’s most important economic priorities in the post-war era, said: One of the most important issues is increasing the predictability of economic conditions, in such a way that the initial understanding ultimately leads to a comprehensive and final agreement so that the existing restrictions on the country’s economy, especially in the area of sanctions, are removed.
He added: The issue of sanctions is very important. By reducing these restrictions, the power of predictability in the economy increases and more stability is created in economic conditions; in such an atmosphere, individuals and economic activists can better predict the future and invest in various fields. Also, the country’s economy can have more effective interaction and communication with the global economy.
Argon, referring to the requirements of the post-war economy, explained: The most important issue is stabilizing the conditions and exiting the ‘neither war nor peace’ situation. Overcoming these conditions can greatly help increase investment, create employment, and develop exports. Also, alongside external issues, another important discussion is internal reforms, which must be pursued by the government and the parliament with interaction and coordination.
According to this economic activist, improving processes, enhancing the business environment, avoiding unnecessary government interference in the economy, reducing mandatory pricing, controlling inflation, and other structural reforms are among the measures that must be placed on the agenda.
The member of the Iran Chamber of Commerce emphasized: Eliminating redundant laws and regulations, facilitating the domestic investment platform, preserving existing capital, developing investment and making the real and productive sectors of the economy more attractive, along with reducing the attractiveness of non-productive activities and intermediation, are among the measures that can smooth the path of economic growth and development. Meanwhile, enterprises that have been damaged or suffered losses during this period must also return to the cycle of activity as soon as possible. These are among the important and key points that must be taken into consideration in the current circumstances.
Argon, regarding the obstacles facing the government in achieving these goals, said: In the domestic sphere, there are measures that must be carried out properly. In the area of targeted subsidies, energy, pricing, and amending laws and regulations, there is a need for difficult decisions, and it is natural that there will be resistance to some of these decisions. However, the right thing must be done; even if it creates pressures in the short term. If difficult decisions are not made and fundamental reforms are not carried out, one certainly cannot expect economic growth, development, and progress.
The member of the Iran Chamber of Commerce said: The ground for activity must be provided for the economic activist, and predictability in the economy must be increased. Implementing these reforms will naturally be accompanied by resistance, but the necessary will and determination must exist to do so.
He added: Controlling consumption, observing consumption patterns, and reforms in other sectors also require serious decision-making. This economic surgery must be done proportionately and fundamentally. At the same time, support must be provided for vulnerable groups so that they do not face serious problems during the reform implementation process.
Argon, regarding attracting investment, also stated: Attracting investment, both domestic and foreign, is a very important and key issue. The investor, above all, needs stability and the ability to predict conditions. When an investor intends to invest with a long-term view, for example, three years or more, they must be able to predict the future. If there is no predictability, investment will not easily take shape.
The member of the Iran Chamber of Commerce continued: The investor is looking for a stable environment so that they can receive an appropriate return on their capital within a specific time frame. Also, the government must minimize its interventionist role and act more as a regulator. This issue can help the growth of economic activities and the development of the country.
Finally, Argon, regarding controlling inflation, said: Liquidity growth must be controlled, and the root causes of inflation must be eliminated. The imbalance of pension funds, currency imbalances, and imbalances in the energy sector are among the structural problems that must be reformed. If these imbalances are corrected, a significant portion of inflation can be controlled. Deficits must also be managed to reduce inflationary pressures.
He considered financing economic enterprises to be another important challenge and said: In inflationary conditions, financing becomes very complicated and difficult for enterprises. Inflation increases the need for liquidity and makes managing this situation more difficult. For this reason, controlling inflation is considered one of the most important priorities of the country’s economy.
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