News ID: 168611
Published: 0602 GMT September 13, 2016

Steps to improve economic growth

Steps to improve economic growth

The removal of anti-Iran sanctions has helped the national economy take an optimistic turn. Official figures show that Iran's gross domestic product reached 4.4 percent during March 20-June 20.

A rise in oil and petrochemical production following the lifting of international sanctions has played a major role in ensuring economic growth. The reconnection of a number of Iranian banks to global transaction network SWIFT has also contributed to economic growth.

Iran however faces problems in accessing overseas finances as many large banks fear contravening the remaining sanctions and are concerned about backlash from the United States.

Despite obstacles created by the US, the reconnection to Society for Worldwide Interbank Financial Telecommunication (SWIFT) has resolved some problems pertaining to banking transactions.

Iran requires stable economic growth to generate jobs and promote its global economic status. The Islamic Republic should adopt measures to overcome obstacles which hinder such objectives.

In line with these measures, Iran needs to attract huge investments and overhaul its economic infrastructures to keep pace with modern technology.

Likewise, sanctions have weakened links between Iranian and global markets. Hence, the government should strain every nerve and sinew to rectify the situation by improving business ambience. Domestic businesses should be supported to be able to compete with foreign firms.

The economic policies of the former government (2005-2013) plunged the foreign exchange market into chaos as the national currency, the rial, depreciated by nearly 400 percent against hard currencies. The incumbent administration should avoid such predicaments which plague the economy.

Furthermore, cheap fuel prices have led to greater consumption which is tantamount to squandering national wealth. This necessitates comprehensive approaches to manage the fuel market.

Moreover, the government is still doling out cash subsidies to a large number of people irrespective of their finical capabilities. This policy, which was initiated by the former government, should be put on the right track. Such financial resources must be directed to the production sector to generate jobs and improve economic growth.

The administration also has on its agenda plans to reform the banking system. Such plans should be reinvigorated to help boost transactions between Iranian and foreign banks.

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