TEHRAN, April 2--A senior economic expert said here on Saturday that the establishment of a rial reserve fund would have no positive impact on the national economy, stressing that the proposal is rather meaningless.
Bayzad Mardoukhi, secretary of Board of Trustees of Foreign Exchange Reserve Fund, told ILNA that the establishment of such a fund could make sense only when the government has a surplus budget--which has yet to become a reality.
ÒEven if there is an extra budget, it could be deposited with the National Treasury,Ó he said, stressing that it would be useless to split the budget and deposit part of it in a new fund.
ÒForeign exchange imposes a certain form of discipline on financial matters involving the government,Ó he said, doubting the rialÕs ability to bring that discipline.
Conservative lawmakers had earlier rejected the proposal to establish a rial reserve fund, stressing that they believe the initiative would be too costly.
Davood Danesh-Jafari, an MP, said earlier one major reason why the initiative was rejected was that it had stipulated that one percent of the banking system's financial resources had to be deposited with the rial reserve fund.
The parliamentarians reportedly came to the conclusion last year that it was unnecessary to create such a fund.
Lawmakers who advocated the establishment of a rial reserve fund contended that it would help make economic activities further transparent and that the fund's deposits would then represent the performance of the government managers.
Hassan Noei-Aqdam, a member of the Majlis Economic Commission, told ISNA earlier that the rial exchange fund would function just like the Foreign Exchange Reserve Fund with their difference being in their sources of financial supply.
The Foreign Exchange Reserve Fund saves surplus oil revenues, whereas, the 'rial reserve fund would accumulate the surplus tax revenues and savings by state organizations and companies', he said, adding that the Foreign Exchange Reserve Fund's deposits are dependant on the international developments.

TEHRAN, April 2--Minister of Economic Affairs and Finance Safdar Hosseini has announced that steps are underway to turn Central Bank of Iran into an independent entity.
According to ISNA, the minister said at a press conference that President Mohammad Khatami has ordered the implementation of the initiative to make CBI independent from the government.
Hosseini said the government has to implement the electronic banking system by the end of the fourth five-year development plan (2005-2010).
He praised efforts by the Seventh Parliament to reduce banking systemÕs costs.
Liquidity growth rate has reportedly hit new highs in recent months rising above 31 percent.
The rate had been stipulated by the Third Plan (2000-2005) to average 15 percent, while it has doubled now.
The governor of Central Bank of Iran (CBI) does not have the authority to deal with the problem, say experts, adding that the CBI has to become independent, if it is to handle the liquidity issue properly.
Unlike in most other countries, IranÕs central bank governor is not in charge of controlling liquidity.
The question remains how the CBI governor could bring the liquidity under control when all 30 members of the cabinet want to dictate their own monetary policies.
The Khatami administration has admitted its failure to bring liquidity growth under control. "But we have not been able to peg liquidity growth rate at the projected 15 percent," said Government spokesman Abdollah Ramezanzadeh earlier.

Foreign threats and results of ongoing talks between Iran and EU trio would largely influence the stock market.

TEHRAN, April 2--A veteran Tehran Stock Exchange (TSE) broker said here on Saturday that the stock market would experience relative stability in the year to March 2006 provided that political issues do not have a negative impact on the market.
Nassrollah Barzani told ISNA that foreign threats and results of the ongoing talks between Iran and the EU trio would largely influence the stock market, expressing hope that the impact would be in favor of indices and not against them. ÒI think that the share prices would begin to go up steadily from this month,Ó he said, adding that new brokers could enter the market without the fear from veteran brokers.
Barzani said brokerage firms which have managed to adapt themselves to the market situation have obviously had greater chances of success.
He said despite falling prices in the past few months, most of the TSE-listed companies have managed to stabilize.
TSE chief, Hossein Abdeh-Tabrizi, said earlier the stock market is planning to develop nationwide, stressing the need for local brokerage firms to become further activated.
He said two new transaction halls would be inaugurated in the provinces, adding that another hall would open in the year to March 2006.
The TSE chief expressed hope that with the opening of new transaction halls, many more small investors are expected to invest in the stock market.

TEHRAN, April 2--A major offshore oil company has embarked on a major job cut plan with 100 workers already discharged and 100 more on the list of expulsion.
Issa Kamali, secretary of Bushehr Labor House, told ISNA that Iran Sadra has cited a decline in the companyÕs activities as the main reason for the recent job cuts.
ÒHowever the company is reportedly engaged in new projects in the (oil and gas rich) Asalouyeh area,Ó he said, adding that Sadra is expelling its workers at a time when it needs new recruitments for its new projects.
Kamali further noted that unconfirmed reports indicate that 100 more workers would lose their jobs in the near future.
Many of the expelled workers have filed complaints with Labor Office and Labor House calling for their return to work. Others are seeking unemployment benefits.
Kamali said the company has strong lobbies among local authorities, what has helped it influence the provincial labor officials in order to thwart efforts by the expelled workers to regain their rights. Founded in 1968 as a small ship repair yard in Bushehr, at the northwestern head of the Persian Gulf, Sadra is a leading shipbuilding company in Iran.
While the company retains its traditional interests in shipbuilding, it has committed itself to offshore oil and gas industries and infrastructural civil construction with emphasis on the local market, Asia and Middle East.
The company is a member of Industrial Development and Renovation Organization of Iran (IDRO) and has access to the most comprehensive and integrated industrial facilities in Iran.

NAGOYA, Japan, April 2--Visiting Iranian Commerce Minister Mohammad Shariatmadari said here Friday that Aichi Expo is the symbol of dialogue among civilizations given the participation of all countries, IRNA reported.
Addressing ceremonies to mark the Islamic Republic National Day at Expo 2005 in Aichi, Japan, Shariatmadari said Iran is to diversify transactions with its top trade partner, Japan, which stand at about $10 billion annually.
Shariatmadari hoped that Aichi exhibition would serve as a turning point for materialization of the objective.
The economic growth of 4.7 to 8.6 percent over the past two years signify expedited move towards industrialization and Tehran views Japan as a good partner in this course, he underlined.
He congratulated the Japanese people and government for the success of the Aichi exhibition.
Japanese governmentÕs envoy to Expo 2005 Suki'ichi Minora in an address praised Iran for its active participation in the exhibition.
Japanese Vice Minister of Economy, Trade and Industry Sanzo Hosaka lauded Iran's rich culture and civilization and its proximity with Japanese civilization on Silk Road, saying Japanese citizens are highly interested in Iranian civilization, wishing to have close bonds with it.
He called for upgrading mutual political, economic and cultural ties, saying they are on a high level.
He also called for exchange of valuable experiences between Iran and Japan in proper use of natural resources for sustainable development.
He hoped Iran's presence in the event would help Iranian and Japanese people raise their awareness on each other and bolster ties.
Iran's pavilion, called 'Arts of Life' has an area of 324 square meters and comprises of sections as teaching and training in Iranian family, handicrafts, modern visual arts, post, live show of traditional Iranian music and commercial activities.
The 2005 World Exposition began its six-month run on Friday in Aichi Prefecture, with humanoid robots, futuristic transport systems and a frozen mammoth from Siberia.

Infrastructure and facilities have provided good grounds for investment in Qeshm Island.

TEHRAN, April 2--Authorities on the Persian Gulf island of Qeshm have reported an unprecedented rise in the number of Norouz visitors with private cars arriving on the island increasing by nearly 300 percent against last yearÕs figures.
Mohammad Alishvand, Qeshm governor, told ILNA that more than 16,000 cars entered into the island from nearby mainland cities. ÒOpinion polls show the visitors were relatively satisfied with services they received during the Iranian New Year holidays (on this southern island),Ó he said, adding that the island faced serious problems providing drinking water and sanitary services given the huge influx of visitors.
Qeshm governor said one camping sites had been prepared before the holidays to host the visitors but three more were created shortly after the onrush of tourists to the island.
The largest island on the Iranian side of the Persian Gulf, Qeshm is located off the southern coast of Iran and north of the Strait of Hormuz, within 220km of UAE and accessible by ships.
Infrastructure and facilities have provided good grounds for investment in the island. Several US, Asian and European companies are conducting business in Qeshm which is a top tourist destination given its sunny and diverse beaches, its historical past, and the culture and traditions of its natives.

BERLIN, April 2--Iran's National Petrochemical Company (NPC) is among the top two bidders to purchase Royal Dutch Shell/BASF Group's Basell joint venture, the daily Die Welt reported in its Friday edition.
NPC and a group of Indian investors comprising of a consortium of the chemical firm Haldia, Indian investor Purnendu Chatterje and different funds, are the 'most likely candidates' to buy the plastics company Basell, the paper quoted unnamed investor circles as saying.
Royal Dutch Shell and BASF are reportedly expected to proceed with Basell's sale in the coming days.
The financial transaction is estimated at around Û4.4 billion.

TEHRAN, April 2--A senior pro-reform official said here on Saturday that the Khatami administration would spend the last few months of its second and last term trying only to pave the way for the incoming government to implement the key fourth five-year development plan (2005-2010).
Mohsen Safaei-Farahani, deputy minister of economic affairs and finance and a close aide to President Mohammad Khatami, told ISNA that the government would strive to prepare grounds for attracting greater foreign investments, realizing the economic growth goals and upgrading the national productivity rate.
The official called for greater efforts to help reinforce private sector and give private enterprises some hope that they could play a greater role in moving IranÕs economic development drive forward.
He declined to comment on the next governmentÕs economic approaches, stressing that the country would experience huge developments in the economic sector in the year to March 2006 as the result of the onset of a new era in IranÕs political calendar.
ÒIt is too early now to predict what changes in particular would be made as we are yet to see what section (of the countryÕs political spectrum) the next president would come from,Ó he said, adding that the incumbent president would continue its policies until the new government assumes office.

TEHRAN, April 2--Iran's output of aluminum ingot of about 180,000 tons last year turned it into a major producer of the metal in the region, IRNA reported.
Iran's aluminum ingot production is expected to rise further to 230,000 tons this year.
Over $6.4 billion investment was made in the industry in the region last year and the figure is expected to rise further following the commissioning of aluminum foundries in Qatar, Oman and Saudi Arabia.
Iran's high potential in aluminum production is on show at the Middle East Aluminum Fair in Dubai where it has showcased aluminum ingot and aluminum-based products such as profile, fire-resistant bricks used in foundries.
The UAE and Bahrain are major aluminum producers in the region and Dubai Aluminum Company as well as Bahraini Company Alba are involved in the export of aluminum ingots.

BEIJING, April 2--An Iranian lawmaker said here Friday Iran and China are firm to adopt rules which would help expand cultural, economic and commercial relations, according to IRNA.
Vice Chairman of Iran-China Parliamentary Friendship Group Hossein Sobhaninia Tehran and China are determined to expand relations and cooperation and the Iranian parliamentary delegation's visit to China marks a new move for expansion of mutual economic and trade cooperation.
Outlining the outcome of his five-day visit to China, Sobhaninia said Iranian and Chinese parliamentary friendship groups are ready to follow up policies which would help promote mutual transactions.
He said that both countries are unanimous to empower their private sectors and commerce chambers, arranging meetings in that connection.
He noted that Chinese Pudong and Chingen industrial and trade zones with high standards of management, facilities and capacity can serve as models for Iranian trade zones, contributing to an increase in mutual transactions, which stand at more than $7 billion a year.
Iran is ready to help Chinese entrepreneurs invest in its free trade zones and Chinese officials should also provide customs facilities and ease tariffs on import of Iranian goods, said the lawmaker.