21% of Iran’s idle production units revived

August 21, 2020 - 14:40

TEHRAN- The head of Iran Small Industries and Industrial Parks Organization (ISIPO) has said that 21 percent of the country’s total 9,800 idle production units have been revived by the Industry, Mining, and Trade Ministry, IRNA reported.

According to Mohsen Salehinia, ISIPO plans to revive 1,500 units, mostly small and medium-sized enterprises (SMEs), in the current Iranian calendar year (ends in March 2021) of which so far 468 units have resumed operation, reviving 8,000 job opportunities.

Providing liquidity is the main issue for many of the country’s production units, so based on the arrangements made, these units can receive part of their needed liquidity through bank facilities, the official said.

"Currently, the share of the country's production and industrial units in receiving bank facilities is about 31 percent and it is necessary to allocate a larger share of banking facilities to the country's production and industry," Salehinia added.

Given the position of production in the country's economy and employment, and the fact that production units are facing lack of liquidity to supply raw materials and equipment, it is necessary to increase their share of bank facilities up to at least 40 percent, he stressed.

The ISIPO head further said: "despite all the limitations, we are currently witnessing an increase in production in some units active in the field of home appliances; also, according to the plans made and by solving the problems in the way of the production and industrial units, we will realize the motto of “surge in production” by the end of this year.”

In late June, ILNA reported that ISIPO revived 211 idle production units during the first three months of the current Iranian calendar year (March 20-June 20).

ISIPO managed to revive 1,185 idle production units across the country during the past Iranian calendar year (ended on March 19), according to Ali-Asghar Mosaheb, ISIPO deputy head for small industries affairs.

According to the official, the mentioned units returning to operation created direct jobs for 21,618 persons.


Leave a Comment

3 + 2 =