Economy
Tue, Oct 11, 2005
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Importers Ignore Standard Procedures
Iraq Urged to Cooperate More in Implementing Accords
MP Wants More Accountability
Commerce Ministry Must Keep
Word on Market Regulation
Inflation Cancerous for Economy
Ports Handle 90% of Imports.
TUV to Help Promote Tourism

Importers Ignore Standard Procedures
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Consumption of substandard foreign goods will cause irreparable financial and health-related losses to the Iranian society.
TEHRAN, Oct. 10--A senior member of Iran’s Chamber of Commerce, Industries and Mines (ICCIM) here on Monday lashed out at the consumption of substandard imported goods in Iran, calling for an end to the import of such products.
Ebrahim Jamili, a member of the ICCIM board of representatives, told Moj news agency that national standards have to be drawn up to prevent the import of substandard goods.
“Iranian consumers are not aware of the fact that the expiry dates for many of these products were already over,“ he said, adding that consumption of substandard foreign goods will cause irreparable financial and health-related losses to the Iranian society.
He further demanded greater state support for private companies as part of efforts to improve the quality of domestically-produced goods.
The customs chief said last month that customs offices nationwide have been directed to prevent the import of sub-standard Chinese products, most notably garments.
Massoud Karbassian said only piers with access to customs services are allowed to conduct import-export business, underlining that Iran’s Customs Administration will establish customs offices in piers which are regarded as official entry and exit points.
He said smuggling of tea, cigarettes and home appliances have shown a decline in recent months, when more satellite receivers, alcoholic drinks and guns were brought illegally into the country.
Dubai, United Arab Emirates, is the source for smuggling substandard Chinese goods into Iran.
Iran’s Standard and Industrial Research Institute announced earlier that the UAE had the highest share of export of low-quality and substandard products to Iran in August, when authorities prevented the entry of more than a million dollar worth of substandard goods into the country.
Chinese ambassador to Tehran, Lio G. Tan, has blamed opportunists for tarnishing the image of Chinese goods in Iranian markets, but fell short of explaining why Beijing supports production of substandard goods.

Iraq Urged to Cooperate More in Implementing Accords
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The two sides agreed to set up nine power transmission lines for electricity exports from Iran to Iraq.
TEHRAN, Oct. 10--Minister of Industries and Mines Alireza Tahmasebi called on the Iraqi government to follow up the implementation of economic and industrial accords reached between the two sides in recent months, confirming Tehran’s plans for establishing two bank branches in the war-ravaged country by March 2006, reported Moj news agency.
In his meeting with the visiting Iraqi Transport Minister Salam Aodeh Malki, the Iranian minister said Bank Melli Iran and Bank Sepah, both run by the state, will open their branches in Iraq, stressing that Bank Keshavarzi and Export Promotion Bank of Iran have also undertaken a joint investment project in that country.
He, however, said the two sides must join hands to get bilateral agreements implemented properly.
“Three months ago, when the Iraqi premier was in Tehran for an official visit, the two sides signed several memoranda of understanding on transportation cooperation, which were never implemented,“ he pointed out.
He added that the two sides had also agreed to set up nine power transmission lines for electricity exports from Iran to Iraq, noting, however, that only one transmission line was established.
The Iraqi minister said, for his part, that Baghdad is willing to improve transport cooperation with Tehran, stressing that the implementation of bilateral accords will lead to a boost in mutual interactions.
He blamed technical problems and coming to power of the new Iranian government, which brought up some changes at ministerial levels, for the two sides’ failure to implement bilateral trade and economic accords, expressing hope that joint technical teams will begin work as soon as possible.
Earlier on Sunday, Tehran and Baghdad agreed to remove obstacles on the way of mutual air, railway and land transportation.
According to IRNA, Minister of Road and Transportation Mohammad Rahmati and his Iraqi counterpart Salam Aodeh Malki also reached agreement on early resumption of safe and secure flights from Iran to Iraq, further exchange of cargo and passengers, reconstruction of Iraqi ports and jetties as well as Najaf International Airport, easing visa procedure for Iranians by the Iraqi government, and free border crossings by Iranian and Iraqi nationals.
The Iraqi minister said his country would lift impediments to the transit of Iranian trucks to Iraq and guarantee safety of Iranian planes flying over Iraqi airspace.

MP Wants More Accountability
TEHRAN, Oct. 10--A lawmaker called on the government to hold itself accountable for the budget deficit and the failure to implement the budget law, stressing that tax revenues have not been realized according to the targets specified.
Hassan Sobhani, a member of the Majlis Plan, Budget and Audit Commission, told ISNA that the government failed to realize the targeted 10-trillion-rial tax revenues by June and demanded an explanation.
“Government officials must hold themselves accountable (for their performance) instead of questioning others,“ he said in response to remarks by former head of Management and Planning Organization (MPO) who had blamed this year’s huge budget deficit on the Seventh Parliament’s decision to make some inclusions to the budget bill proposed by the former Khatami administration.
Hamid Reza Baradaran-Shoraka had said that the Parliament has to be held responsible for the budget deficit.
“We are ready to defend those parts that were devised by us,“ he said, adding that the Ahmadinejad administration must work to devise an ’operational’ budget bill for the year to March 2007.
However Sobhani believed that the Seventh Parliament has managed to reduce the government’s costs by 10.7 trillion rials, rejecting reports that its performance has led to an increase in expenditures.
This is while a number of lawmakers have admitted in recent weeks that the parliamentary initiative to set fixed prices for goods and services has aggravated budget deficit.
Reza Abdollahi, who heads the Majlis Plan, Budget and Audit Commission, said earlier that the fixed price law has led to a huge waste of resources, stressing that competitive prices must return to market.
Mohammad Shahi-Arablou, who heads the Majlis Economic Commission, also said the government’s budget deficit is expected to increase by 30 trillion rials until March, blaming the huge shortfall on the Parliament’s decision.

Commerce Ministry Must Keep
Word on Market Regulation
TEHRAN, Oct. 10--An economic official said here on Monday that business owners expect the Commerce Ministry to fulfill its pledges on organizing the domestic market.
Mohammad Reza Behzadian, chairman of Tehran Chamber of Commerce, Industries and Mines, told ISNA that creating transparency in relations between various economic organizations is the best mechanism for removing present monopolies, stressing that the economic sector is suffering from political tendencies of its officials.
“Hence, the new government must give top priority to removing monopolies in a bid to realize its pledges to seek justice,“ he said, adding that the third and fourth development plans’ anti-monopoly objectives have been ignored.
He said the government has no choice but to cede its responsibilities to the private sector, stressing, however, that it must maintain supervision over private companies’ performance.
“In our country, the government rarely oversees the performance of private entities,“ he said, adding that the government has failed to supervise activities undertaken by chambers of commerce nationwide over the past 25 years.
Behzadian said earlier that there is a direct relationship between political democracy and economic democracy, stressing that a democratic political rule can never come without a liberal economy.

Inflation Cancerous for Economy
TEHRAN, Oct. 10--A lawmaker said here on Sunday that inflation has turned into a cancerous disease for the national economy, stressing that the country has suffered from the chronic ailment over the past 20 years.
Adel Azar, a member of the Majlis Plan, Budget and Audit Commission, told ISNA that official figures released by Central Bank of Iran and Management and Planning Organization placed inflation rate below the actual level.
“The actual rate is 16 percent,“ he said, adding that he is skeptical about the prospect of the government being able to keep inflation below 14 percent in the year to March 2006.
He further said that the budget deficit will exceed the predicted 70 trillion rials to reach 80 trillion rials this year, stressing that the huge budget deficit will further aggravate inflation.
Azar said the budgeting system has to be modernized, if the inflation rate is to come under control next year.
He said an increase in tax revenues will also help tame inflation.
“Productivity rate is also required to improve and (government) expenses have to come down as part of efforts to reduce inflation,“ he added.
Earlier this week, the former head of Management and Planning Organization blamed this year’s huge budget deficit on the Seventh Parliament’s decision to make some inclusions to the budget bill proposed by the former Khatami administration.
Hamid Reza Baradaran-Shoraka said the Parliament has to be held responsible for the budget deficit.
Some lawmakers have admitted in recent weeks that the parliamentary initiative to set fixed prices for goods and services has aggravated budget deficit.
Mohammad Shahi-Arablou, who heads the Majlis Economic Commission, said the government’s budget deficit is expected to increase by 30 trillion rials until March, blaming the huge shortfall on the Parliament’s decision to set fixed prices for goods and services.

Ports Handle 90% of Imports.
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Iranian ports should handle about 30 percent of the total cargo transported in the Persian Gulf by the end of the Fourth Plan.
TEHRAN, Oct. 10--More than 90 percent of the country’s imports and 80 percent of its exports are handled by ports, deputy head of Port and Shipping Organization for technical and engineering affairs said.
Speaking at the closing ceremony of Concrete Day Conference, Ali Taheri Motlaq stated that expanding the transportation sector in general is a prerequisite not only for attaining balanced development in all sectors but also for improving the security of a country.
It is also a criterion in evaluating the development index of a country, he added.
The official pointed out that the projected share of the transportation sector in the gross domestic product is set at 8 percent by the end of Fourth Five-Year Economic Development Plan (2005-2010), adding the figure is 15 to 20 percent in some countries.
“Huge volume of investment is required for improving the sector, but given the limited resources, we should work out a remedy for the problem,“ he noted.
Taheri added that Iranian ports should handle about 30 percent of the total cargo transported in the Persian Gulf by the end of the Fourth Plan, saying extensive planning and more financial resources are required to achieve this.
He said that the country has over 2,700 kilometers of coastlines, adding that there is the possibility of establishing port facilities along the entire length of the coast.
“Given the sensitive weather conditions in the Persian Gulf, much attention should be paid to the quality of concrete used in the buildings along the coast, he added.
He said that private sector has so far made huge investment in increasing constructions along the coastal areas as well as creating facilities and resources there.
The official concluded that the nominal capacities of the ports for handling non-oil exports increased from 45 million tons in 1999 to more than 60 million tons in 2004.

TUV to Help Promote Tourism
TEHRAN, Oct. 10--German experts of TUV will standardize Iran’s tourism industry, according to CHN.
TUV is a well-known international standardizing company with representatives in more than 80 countries.
Standardizing tourism industry is one of the sub-branches of the company’s activities. Now, Arad Company in Iran has succeeded in becoming the company’s representative in Iran to try to standardize the tourism facilities of the country. Hotels and lodgings, restaurants, and travel agencies can comply with internationally-accepted standards, helping to improve their facilities and increase customer satisfaction.
“One of the reasons we wanted to become TUV representative in Iran is the confidence that the standards of the company provide for the tourists. A lot of tourists are familiar with TUV standards, and when they know that a hotel or a tourism center has got this standard, they will be more willing to go there,“ said Leila Jafari, chief executive of Arad Company.
In its new programs, Iran’s Cultural Heritage and Tourism Organization welcomes different standard companies, believing that with the increase of such companies in the country, the level of services will also improve.
MI Company of England and now TUV of Germany are just the first to discover Iran’s potential tourism market.