Economy
Tue, Jan 18, 2005
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Political Lobbies Keeping Iran Away From OPEC Post
By Azam Mohebbi
Fixed Price Initiative Won't Endure
MPs Urged To Cancel Legislation Before It's Too Late
Debt Below 10% of GDP
Industrial, Mineral Exports Reach $3.6m
Walnut Imports Planned
Zimbabwe Ties to Expand
Population Growth Averages 1.4%

Political Lobbies Keeping Iran Away From OPEC Post
By Azam Mohebbi
Oil analysts believe that there are powerful lobbies within the Organization of Petroleum Exporting Countries (OPEC), which have launched vigorous efforts in the past couple of decades to keep Iran away from the post of OPEC secretary general.
If Iran takes the seat, concerns among western countries, especially the United States, about the prospect of the Islamic state influencing the organization's policies against their interests would certainly increase.
Mir Tayyeb Mousavi, an oil expert, told Iran Daily that these concerns stem mainly from Iran's past policies regarding the world oil supply and its disagreements with major producers, most notably Saudi Arabia, over crude oil prices.
"Saudi Arabia has always tried to secure US interests through policies that led to an increase in supply and a decline in prices," he said, adding that Kuwait and very recently Iraq have also joined the Saudis in this respect.
He said major US oil companies are operating in Saudi Arabia, while Washington is the top supplier of arms to the wealthy kingdom.
Until 1983, all OPEC member states had held the post of secretary general at least once in view of the alphabetical order used to determine the chairmanship of the organization.
Fouad Rowhani of Iran became first OPEC secretary general some 40 years ago. However, when it came to Iran again to take the post in the early 1980s, the Arab member-states of the organization voted against it.
"In the past years Arabs have always vetoed our bid and we have reciprocated," he said, stressing that political issues are involved in efforts to deny Iran its right to the post.
Mousavi said Iran has received certain privileges from Saudi Arabia in return for it staying away from the seat.
"These incentives include an increase in the number of Iranian Hajj pilgrims and Arab countries' support for Iran at the international level," he added.
Ali Rashidi, another prominent economic commentator, contended that Iran's foreign policy apparatus has done little to secure its rights within OPEC.
The expert said the Islamic state has failed to take on a key executive post in the organization over the past years, adding that Iran has not received significant privileges in exchange for losing chairmanship.
It remains to be seen whether Iran, which is the second largest producer within OPEC, would manage to regain the post after four decades in view of the fact that its persistence to carry on a peaceful nuclear program remains a handy tool for the United States to keep the country from holding sensitive posts in international bodies.

Fixed Price Initiative Won't Endure
MPs Urged To Cancel Legislation Before It's Too Late
TEHRAN, Jan. 17--A senior economic official stressed here on Monday that the parliamentary move to keep prices of major consumer goods unchanged during March 2005-2006 would not sustain, and called on the lawmakers to think twice before it is too late to overturn the decision.
According to ISNA, Akbar Komeijani, deputy governor of Central Bank of Iran for economic affairs, expressed concern about the adverse consequences of the parliamentary decision, saying the lawmakers were expected to conduct a comprehensive research on the initiative before rushing to ratify it.
"Fixed prices would not endure as it would inflict huge expenses on the national economy," he said, stressing that initial estimates suggest the government would face a financial shortage of 17 trillion rials in the year to March 2006, if the initiative were to be enforced.
He further noted that parliamentary calls on the government to cut expenditures and reduce the number of overseas trips to save money for implementing the fixed price plan lack logic.
"Our friends in the parliament say the government must cut its expenses, whereas the Khatami administration has already done so," he said, calling on the parliamentarians to elaborate on what they really mean by cutting costs.
Komeijani said the government would have to borrow from the CBI or withdraw money from Foreign Exchange Reserve Fund to offset budget shortage it would certainly face thanks to the parliament's fixed price decision.
The Khatami administration wants the parliament to approve a further withdrawal for subsidy allocation.

Debt Below 10% of GDP
TEHRAN, Jan. 17--Deputy governor of Central Bank of Iran (CBI) for Foreign Exchange Affairs said here Sunday that Iran's actual debt stands at $12 billion or less than 10 percent of the gross domestic product (GDP). Iran's GDP is about $635 billion, according to IRNA.
Mohammad Jafar Mojarad said that potential debts which may never be materialized are estimated at $38 billion. "Iran is in good position in terms of debts and is among the countries with relatively low level of debt," he said.
Limited debt means a better credit position such that with timely debt service, the volume of the foreign debt obligations have been reduced, the deputy CBI governor underlined.
Mojarad said that the central bank is mainly holding non-dollar reserves in its basket of currencies. Over 60 percent of the basket is made up of euros, Swiss francs, British pound sterling and Japanese yen.
The currency mix is designed to maximize return on its reserves. The bank's policy has been to hold more euros, but this has not been followed in earnest as yet, he underlined.

Industrial, Mineral Exports Reach $3.6m
TEHRAN, Jan. 17--Industry and Mines Ministry reported here Sunday that the value of industrial and mineral export stood at $3.613 billion in the first three quarters of the current Iranian year (started March 20).
According to IRNA, the figure included handicrafts, carry-on-luggage and border exports and is 26.4 percent higher than the figure recorded in the same period last year.
The report further said that given the quantitative targets of the Third Five-Year Development Plan (March 2000-2005) of $5.44 billion for this year, so far, about 88.5 percent of the target has been achieved.
In the same period the share of industrial and mineral exports as in the non-oil exports stood at 70.8 percent.
The categories, which registered increases in exports, were foodstuff, pharmaceuticals, medicine, chemicals, petrochemicals, plastics ironware, textile, clothing, vehicles and parts.
However, the exports of non-metals items, tires, leather and electronics were lower in the period, the report added.
Head of Export Development Center of Iran (EDCI) said here last week that Iran has over 20,000 exportable items and conducts trade with over 160 nations worldwide.
Mojtaba Khosrowtaj, also the deputy commerce minister, said that the value of non-oil exports including engineering and technical services is estimated to stand at $8 billion by March.
The figure is three-fold the amount registered in 1997.

Walnut Imports Planned
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With the approach of the new Iranian year (starting March 21), the demand for walnuts will increase to a great extent.
TEHRAN, Jan. 17--Iran needs to import up to 6,000 tons of walnuts following a decline in domestic output in the wake of destructive frosts which hit the country last year, said a member of Iran Chamber of Commerce, Industries and Mines here on Monday.
Asadollah Asgaroladi told ILNA that with the approach of the new Iranian year (starting March 21), the demand for walnuts will increase to a great extent making the country import huge amounts of the nuts.
"In the past years, in addition to supplying the domestic demand, we used to export walnuts," he said, stressing that walnut imports would most probably take place from India, Turkey and China.
The official said, however, that it is in the best national interest that the people would do with less this year to avert walnuts imports. "It is much better to put up with higher prices and shortage of supply than to import nuts from other countries," he said without elaborating.
He said the government pays export incentives of up to two percent to the dried fruit sector.

Zimbabwe Ties to Expand
DUBAI, UAE,
Jan. 17--Iranian Minister of Cooperatives Ali Soufi met Zimbabwean deputy minister of information and publicity in Harare on Sunday to discuss areas of cooperation between the two countries.
According to IRNA, Soufi described bilateral relations as satisfactory, notably in agriculture sector and radio and television.
He also toured Zimbabwe state radio and television broadcasting (ZBH).
The Zimbabwean official said that the two countries have good cooperation in radio and TV, which began last year with the signing of a document.
The agreement which stipulates for ZBH broadcasting system to be changed form analogue to digital is currently being carried out and is slated to be completed by May.
Soufi in a meeting with Zimbabwe Ambassador to Tehran Stephen Chiketa said here in November that expansion of economic and trade relations with African nations was among the priorities of Iran's cooperative sector.
The ministry public relations department quoted Soufi as calling on Zimbabwe to implement the agreements signed between the two nations.
Also, an agreement, to remove double taxation is also being prepared, which if approved will greatly contribute to boosting trade transactions between the two nations, he added.
Chiketa referred to the exports of first batch of combines made in Iran, adding that other agreements between the two nations are to be implemented in the near future.

Population Growth Averages 1.4%
TEHRAN, Jan. 17--Management and Plan Organization (MPO) said here Sunday that the annual average population growth rate is 1.4 percent, IRNA reported.
It added that the figure exceeds the estimates of the Third Five-Year Development Plan (March 2000-2005).
Repatriation of Afghan refugees and migration of Iranian have contributed to the decline in population growth rate, the MPO stated.
The total population of the country was put at 66,680 million in the last Iranian year (ended March 19, 2004), which is 400,000 lower than the estimates of the Third Plan.
The population's mean and median age has also gradually dropped, the report added.
Along with lower age of the population, youth unemployment remains one of the biggest challenges for national planners.
A report commissioned by the MPO and Iran Youth Organization (IYO) released here in November predicted that if the annual unemployment rate of 13.2 percent holds up then the jobless rate among 15-29 age group will reach 52 percent within two years.
It added currently over 31 percent of the 15 to 29 years old are unemployed.
The current unemployment rate in the age brackets 15-19 and 20-24 years is 34 percent and for 25-29 years the figure stands at 16 percent.