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| IMF chief lauds Iran’s subsidy reform plan |
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.jpg) TEHRAN - International Monetary Fund Managing Director Christine Lagarde has lauded Iran for implementing its subsidy reform plan and has described it as an appropriate model which should be followed by other countries.
Lagarde made the remarks in a letter sent to Iran's executive manager in the IMF, Mohammad Ja'far Mojarrad, the Mehr News Agency reported on Sunday.
In her letter, the IMF managing director expressed appreciation for the measures Iran has taken to reform its subsidy system and advised other countries, and especially oil-producing states of the Middle East, to follow Iran's model in carrying out reforms.
Hopefully, the IMF can benefit from the outcomes of the implementation of the first phase of Iran’s subsidy reform plan, she added.
The Iranian government implemented the first stage of the subsidy reform plan toward the end of 2010 in an attempt to wean the country off food and fuel subsidies. At the time, President Mahmoud Ahmadinejad called it the “biggest economic plan of the past 50 years.”
The plan allows the government to gradually slash subsidies on fuel, electricity, and certain goods over the course of five years, with low-income families being compensated with direct cash handouts.
According to a Majlis ratification, the administration is obliged to implement the subsidy reform plan in three stages in the five-year period.
MG/HG
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