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Focus on C. Asian Trade
Governor General of Gilan Ruhollah Qahremani told the Fourth Specialized Meeting on Promoting Iran’s Non-Oil Export to Russia in Rasht on Thursday that Russia is an important and influential country in the region.
He further told the gathering, “We will try to create conditions for expanding exports and improving national and regional economic conditions by developing Gilan’s ports, expanding shipping fleet and rail transportation system, improving production and identifying the markets in Caspian Sea littoral states, particularly in Russia.“
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Domestic producers must understand that once Iran becomes a WTO member, only producers who can manufacture high quality products at a competitive price will be successful.
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He underscored the need to support and grant banking facilities to merchants and exporters, ISNA reported.
Head of Gilan’s Commerce Department, Reza Pakseresht, said at the same gathering that the most important targets of the government were to promulgate the culture of exports, develop national will for exports, facilitate foreign trade and enter the arena of international trade.
He added, “Gilan can also play a key role in promoting non-oil exports, which has always been among the strategic missions of various developmental plans.“
Meanwhile, deputy commerce minister and head of Trade Promotion Organization of Iran, Mehdi Ghazanfari, said on the sidelines of the event, “Banking facilities allocated for exports is not at all sufficient. Commerce Ministry experts have calculated that the share of banking facilities in exports is a meager 2 percent.“
He added, “In the new supportive package of the Central Bank of Iran (CBI), the share of banking facilities in exports has been announced at 9 percent. We believe that this is still a low figure and bank officials should increase it. Today governments are obliged to rectify their structure to achieve development and they consider exports as a remedy for economic problems.“
Ghazanfari recalled that exports have been underlined as an effective parameter in economic advancement in development plans, notably in the third and fourth plans.
“Hence, given the importance of exports and to expedite development, all economic and executive entities are duty-bound to create the needed infrastructures and facilities to promote exports. Despite the problems, based on agreements between Commerce Ministry and banks, merchants and exporters can receive hard currency facilities from banks,“ he noted.
The official recalled that Iranian merchants and exporters should realize that they can do much better in trade with Central Asian states.
“They must try to exchange industrial and service goods with Central Asian states instead of agricultural products,“ he noted.
The deputy minister recalled that the ministry intends to adopt proper economic methods to prevent further hikes in inflation and control the pricing mechanism more effectively.
He underlined that the private sector should take charge of trade and not the government.
Ghazanfari underlined that Iran can join the World Trade Organization (WTO) only when negotiators representing Iran are powerful.
He warned that domestic producers must understand that once Iran becomes a WTO member, only producers who can manufacture high quality products at a competitive price will be successful.
Some 300 experts, merchants, producers and officials in charge of commercial activities plus several Russian officials attended the meeting.
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Iran Khodro, Tunisia
Sign Auto Accord
Iran and Tunisia have signed an agreement on cooperation in the auto industry as well as production and export of spare parts, said head of Iran Khodro Investment Company Parviz Kazemi.
In a fax sent to Iran Daily, Kazemi, who returned from a visit to Tunisia at the head of a delegation, stated that the two sides also agreed to produce over one million light and heavy vehicles in the North African state.
Noting that Iran-made car ’Samand’ has been welcomed by many foreign countries, he hoped that the car could enter the Tunisian market in the near future.
Meanwhile, Iran Khodro opened its permanent showroom in Sharjah, the United Arab Emirates, on Saturday. The aim of the move is to ensure a constant presence in the highly competitive UAE market by introducing and distributing Iranian made cars.
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$110m for Airport Renovation
Over $109.6 million have been allocated to renovating and equipping airports nationwide, announced Managing Director of State Airports Company Asghar Ketabchi.
According to IRNA, of the figure, about $65.7 million will be allocated for development projects and renovation, while about $43.9 million will be spent on purchasing parts, he said on the sideline of a conference on ’Chabahar, Transit and Development of the Eastern Corridor’ in Tehran.
“The funds will be mostly utilized for Isfahan, Mashhad, Tabriz as well as Tehran’s Imam Khomeini airports.“
He further noted that 55 airport terminal projects underway throughout the country will gradually become operational.
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100 Projects Begin
Deputy oil minister and managing director of National Iranian Oil Company (NIOC) announced on the occasion of the 100th anniversary of oil production in Iran that the Oil Ministry will begin executive works on 100 projects throughout Khuzestan province.
According to IRNA reporter in Ahvaz, Seifollah Jashnsaz, who was speaking on the occasion of the 100th anniversary of Iran’s oil industry in Masjed Soleiman, added that the projects would include road construction, sport complexes, service stations, development, health, cultural, educational and environmental projects.
He added, “As a token of the nation’s gratitude to the noble residents of Masjed Soleiman, where the Middle East’s first oil well was discovered, many of these projects will be implemented in this town.“
Concurrent with the occasion, Oil Minister Gholamhossein Nozari officially inaugurated a gas refinery in the country’s southwestern province of Khuzestan.
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On May 24th, 1908, following some 18 months of drilling, the first drill head in the Naftoon region of Masjed Soleiman hit oil and Asmari oilfield, IranŐs first oil well, was born.
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To mark the anniversary of the Liberation of Khorramshahr and to commemorate 100 years of Iran’s oil industry, Nozari ordered the launching of one of the most modern gas refinement plants in the world.
According to the managing director of the refinery, Noureddin Razaqi, the refinery was built at a cost of nearly $27 million and has a daily production capacity of one million cubic meters of natural gas, which can be increased by 40 percent. The output of the plant will be mainly used to meet the energy needs of Masjid Soleiman.
Also, Jashnsaz referred to the relocation of 5,000 residential houses from polluted areas, reconstruction and improvement of buildings of 28 schools and a number of sport stadiums, construction of academic, cultural, and sports complexes, building libraries, electricity networks, and parks, construction and improvement of two hospitals, as some projects already undertaken by the Oil Ministry and South Oil Rich Regions Oil Company in the Masjed Soleiman area.
He said that the budget allocated to these projects is 2,552 billion rials which was provided by the Oil Ministry.
Congratulating Iranian oil industry personnel on the occasion of the 100th anniversary of oil production since May 24, 1908 from Masjed Soleiman’s No. 1 Oil Well, he reiterated, “Ever since the discovery and production of oil in Iran, political, economic and social developments in our country have each been in a way interlinked with the oil industry.“
The deputy oil minister referred to efforts by the Iranian oil industry personnel, particularly during the tough era of eight-year Sacred Defense (1980-1988), noting, “Throughout the (Iran-Iraq) war, production, drilling and transfer of oil was not halted even for a single day and that is a great pride for the noble personnel of our country’s oil industry.“
Jashnsaz informed the audience, “Out of Iran’s potential 136 billion barrels of oil reserves, so far 65 billion barrels have been exploited and used, of which 25 percent of that huge task has been done in the past three decades, that is after the victory of the 1979 Islamic Revolution.“
He said that the extensive effort of the oil industry personnel is proof for their being in harmony with the lofty ideals of the revolution, adding, “The country’s oil industry is interlinked with the Islamic Revolution.“
The official referred to sponsoring scientific and university conferences nationwide on oil industries as other programs to be held to mark the centenary of oil production.
On May 24th, 1908, following some 18 months of drilling, the first drill head in the Naftoon region of Masjed Soleiman hit oil of Asmari oilfield and Iran’s first oil well was born. That was also the Middle East’s first oil well, also known as Masjed Soleiman’s Number One Oil Well.
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Int’l Agro Expo Underway
The 15th International Agricultural Trade Fair of Iran, known as Iran Agro 2008, opened on Sunday at Tehran International Fairgrounds and will continue until Wednesday.
According to ISNA, Iran Agro 2008, which will showcase agricultural machinery and equipment as well as livestock and poultry breeding, is considered the largest of its kind in the Middle East since its inception in 1994.
The event will feature the products of 413 domestic and 220 foreign producers from Spain, Slovenia, Austria, the United Arab Emirates, Britain, Italy, Germany, Brazil, Belgium, Thailand, Turkey, China, Japan, Sri Lanka, Sweden, Switzerland, France, Finland, Canada, South Korea, Poland, Hong Kong, the Netherlands and India.
Iran Agro 2007 was held at Tehran International Fairgrounds from May 22 to 25, 2007.
Some 78 exhibitors from 10 countries, namely, France, Germany, Spain, Syria, Canada, Greece, Iran, the Netherlands, Switzerland, Syria, and Turkey attended that event.
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Gasoline Self-Sufficiency in 3 Years
With the renovation and development of refineries and construction of new ones, Iran can become self-sufficient in gasoline within three years, director of National Iranian Oil Refining and Distribution Company (NIORDC) for refining affairs told Mehr News Agency.
“Currently development and renovation of refineries are underway at a cost of $7 billion and as scheduled about 34 million liters will be added to the country’s daily gasoline production capacity by 2012,“ Aminollah Eskandari explained.
While noting that currently an average of 65 million liters of gasoline is being consumed daily in Iran, he added.
“At present refineries produce 42 million liters of gasoline daily and with the implementation of development projects, gasoline production capacity will reach 76 million liters per day,“ he concluded.
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36 Mining Schemes By Feb. 2009
Some 36 mining schemes will begin production by next February, the chairman of the Executive Board of Iranian Mining Industries Development and Renovation Organization (IMIDRO) told Mehr News Agency.
Some $6.14 billion from state funds were allocated for the schemes, which were launched in the current Iranian year (started March 20) and their implementation is being supervised by IMIDRO, Ahmad-Ali Harati-Nik elaborated.
Once the schemes become operational, copper, steel, aluminum, and iron ore production will increase by 250,000 tons, 15.8 million tons, 505,000 tons and 25 million tons respectively, he added.
The schemes are scheduled to go into production by February 11 during the Ten-Day Dawn celebrations to mark the 30th anniversary of the victory of 1979 Islamic Revolution.
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Handmade Carpets
Over 5.3 million square meters of handmade carpets are woven in Iran per annum, said head of Iran’s Carpet Association, Jamaleddin Bassam.
Isfahan Flora Exhibit
An exhibition of flowers, plants and greenhouse facilities will be held at
Isfahan International Fairgrounds for four days from June 18. Some 150
domestic and foreign flower producers will showcase their products at the event.
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OPEC Not Responsible for US Woes
Iran has denounced a US anti-OPEC legislation, saying OPEC members are not responsible for the shortcomings and woes of recession-hit American economy.
Hojjatollah Ghanimifard, director of international affairs at the National Iranian Oil Company, told Presstv that US lawmakers seek to blame the Bush administration’s economic failures on oil exporting countries.
On Tuesday, the US House of Representatives passed a bill which would allow the federal government to sue OPEC members for alleged price fixing of oil by controlling supply.
The senior Iranian oil official said that the current oil crisis is a direct ’projection of US economic problems’.
The claim that OPEC has imposed the current prices on the market by cutting production is completely ’non-expert’, he declared. “Misleading public opinion appears to be the main idea of the legislation,“ he continued.
“Is it not true that oil output is at its highest in recent years and that the strategic inventories in consumer countries, especially in the United States, have increased,“ asked the official.
OPEC Secretary-General Abdullah Al-Badri has said that speculation and the weak US dollar, rather than insufficient output, are responsible for the soaring oil prices.
Badri has indicated that Organization of Petroleum Exporting Countries can do nothing to curb the hike in oil prices although they are having a severe impact on many countries, especially in the developing world. “When we see there is a shortage of supply, we will act,“ he said. But in the present situation, ’even if we increase output tomorrow, the prices will not come down because of speculation and because of a weak dollar’.
Crude oil prices hit a record Thursday and Friday, topping $135 a barrel. However, OPEC maintains there is no need to increase output immediately.
Economic Deals With Belarus
Iran and Belarus signed documents on economic cooperation, visiting Iranian industries and mines minister said.
Ali Akbar Mehrabian told IRNA on Saturday that the two sides agreed to expand mutual economic cooperation.
Iran and Belarus signed memorandum of understanding on standard, purchase of different kinds of agricultural machinery, setting up cement factory in Belarus, establishing a thermal power plant, exporting medical equipment and cooperating in the geology sector.
During the visit, Mehrabian also held talks with Belarusian President Alexander Lukashenko on issues of mutual interest.
At the meeting, President Lukashenko referred to the common Minsk-Tehran stance on international issues, including the need for creating of multipolar world order, adding, “There is no ambiguity, or obstacle in the path of our two countries’ political and diplomatic relations.“
According to Lukashenko, the level of his country’s trade with Iran was $80 million annually, which is quite low. “The potentials for trade in both countries are far above that level.“
The Belarusian president expressed Minsk’s readiness to raise that level to one billion dollars in 2008.
The Iranian minister, in a meeting with Belarusian Industries Minister Alantoli Rotski, exchange views on ways to expand economic and business ties between the two countries. Mehrabian visited Belarus at the invitation of Rotski.
Lithuania Customs Ties Reviewed
Head of Iran’s Customs Administration Mohammad Hashem Rahbari on Saturday held talks with the new Lithuanian Ambassador to Iran Darius Pranckevcis on issues of mutual interest.
At the meeting, Rahbari referred to Iran’s status within the World Customs Organization (WCO) and said Iran is a long-standing member of WCO and has acceded to over ten customs-related international conventions, IRNA reported.
“Currently, all WCO members including the Islamic Republic are following the Code Harmonized System (CHS), for coding and classifying imported or exported commodities.
Rahbari regretted the low trade exchanges between Iran and Lithuania and hoped that transactions would increase in near future. The official also noted that Iran and some countries have signed agreements on information sharing, combating customs fraud and smuggling.
Pranckevcis, for his part, described the meeting as positive in increasing bilateral cooperation and voiced his country’s willingness to bolster ties in all fields.
Bourse Booming
Tehran Stock Exchange, which has witnessed a boom because of the slump in the housing sector, is offering the shares of new companies, said a stock market agent.
Ali Eslami Bidgoli also told Fars News Agency that the recession in the housing market has channeled a portion of the capital to the bourse.
Investors have welcomed the listing of new companies in the bourse, he explained, citing the shares of Shipping Organization which were offered in the bourse as an example.
He also attributed the bourse’ robust activity to the hike in the price of steel products in the domestic and global markets.
On the status of cement industry, Eslami Bidgoli said that the possibility of liberalizing or increasing the prices of cement has created a state of shock among customers. Unless a decision is taken on cement price, this trend will not be checked, he warned.
Participation Bonds Discontinued
Energy minister said the government has ordered his ministry to stop issuing participation bonds.
Parviz Fattah told Mehr News Agency that the Energy Ministry will not issue any participation bonds this year, adding that the ministry has not specified a figure for the value of the existing bonds since the market cannot afford them.
According to the official, last year the ministry issued bonds worth 3,000 billion rials, of which only around 800 billion rials were sold.
He also said last year all government organizations including the Central Bank of Iran sold participation bonds, but since they failed to sell all of them, they now have to deal with the consequences such as repayment of debts from their own pockets.
Fattah maintained that the government has ordered the ministries and organizations to stop selling the bonds this year. “This means they will have to purchase the bonds themselves. These measures will only increase the amount of debts they owe to the general public and other organizations. For this reason, the Energy Ministry is trying to come up with an alternative plan to resolve the issue.“
Experts had earlier warned the government of the consequences of releasing participation bonds without specifying how the revenues would be used. They argued that participation bonds could be used as a mechanism to gather liquidity and channel it to productive economic ventures.
Also revenues from the sales of these bonds could help fund development projects and drive the national development forward. But if such revenues are not spent on economically viable projects, they will worsen inflation.
So they urged the government to look into the impact on the employment sector of projects to be implemented using revenues from participation bonds.
Insurance Crucial for Oil Sector
The First Conference on Insurance in Oil, Gas and Petrochemical Industries will be held in Tehran from July 8-9, announced the secretary of the conference, Ayat Karimi.
He added that Information Dissemination Institute of Oil, Gas and Petrochemical will organize the conference in cooperation with Oil Ministry and affiliated entities, insurance firms, a number of private companies and Iranian universities, reported IRNA.
Karimi noted that oil, gas and petrochemical industries have been covered by insurance since 1999, adding Iran Insurance Company can indemnify losses to the tune of $400 million. “If damages exceed this, it will be reimbursed under co-insurance coverage,“ he noted.
He stated that oil projects are prone to risk in exploration, exploitation and transfer stages, so insurance is essential for the industry. Karimi stated that the value of the energy section of the insurance industry will reach $325 million to $380 million in 2020.
5 Ministries to Import Cement
The government has authorized the ministries of energy, road & transport, oil, education and housing & urban development to import cement.
According to ISNA, the move was taken to meet a major part of the demand of the people and private sector. Based on the approval, the said ministries are permitted to allocate three percent of their development funds for this purpose, ISNA reported.
The balance between the price of imported and domestically produced cement will be reimbursable with the approval of vice president for planning affairs.
Ministry of Industries and Mines announced recently that the cement production capacity will reach 55 million tons and 64 million tons by June 21 and the end of the Iranian year to March 2009 respectively.
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