Over $442m of state-owned shares divested in 4.5 months

August 7, 2018

TEHRAN- Iranian Privatization Organization (IPO) has offered 19.473 trillion rials (about $442.5 million) of state-run shares to the private sector since the beginning of the present Iranian calendar year 1397 (March 21), IRIB reported on Monday.

In late May, IPO published the list of the enterprises that their shares are planned to be transferred to the private sector by the end of current Iranian calendar year (March 20, 2019).

As previously reported, in its planned budget for 1397, the Iranian government expects to earn some 106 trillion rials (about $2.4 billion) of income from divesting shares of sate-run companies to the private sector.

Implementation of privatization plan aimed at more productivity, investment making, job creation, promotion of trade balance, more competition in domestic economy, and reducing financial and management burden on the government has been under the spotlight in Iran over the past decade.

The law on implementation of the general policies of the Article 44 of Iran's Constitution on privatizing state-owned companies was declared in 2006 in a bid to downsize the government and promote the private sector’s role in the national economy.

The government envisioned a large privatization program in the Fifth Five-Year National Development Plan (2010-2015), aiming to privatize about 20 percent of the state-owned firms each year. Under the present interpretation of the Article 44, some state-owned companies have been privatized to reduce their financial burden on the country’s budget and also increase their productivity.

MA/MA

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